Bitcoin: Store of Value or pseudo-anonymity?
The leading crypto currency divides the opinions of the masses. While countless followers praise the peer-to-peer currency as a revolutionary invention, critics criticize, among other things, the high transaction fees and the lack of decentralization. We take a closer look at the advantages and disadvantages.
The market leader looks back on an impressive rise. Within a decade, the first crypto currency made a reputation as an ecosystem that can survive without a “third party”. Users can purchase BTC units around the clock, and the crypto exchanges do not close on weekends. In addition, worldwide bank transfers are possible at all times. Country borders do not play a role. There is no institution that can stop these transactions. This is a big difference to traditional monetary systems.
Bitcoin as a real alternative
Bitcoin transactions take place without credit control and governments can hardly understand this. This is an enormous advantage, especially in crisis areas. Here many people do not have a bank account and inflation weakens the national currencies. One terminal is enough to send the “digital gold”. Thus the digital currency represents a real alternative for millions of people.
Low inflation rate
Time and again experts draw attention to the problem of uncovered FIAT currencies. Following the outbreak of the coronavirus pandemic, the global economy is in a tangible crisis. Here, too, the digital currency is scoring points with an inflation rate of 1.8 %. The aftermath of the halving has passed and the Difficulty is at a record level after the last BTC Difficulty Adjustment. Nevertheless, there are still reasons that speak against a BTC as a crisis-stable “Store of Value”.
Skeptics complain about disadvantages
Despite Lightning, despite successful halving: There are still many Bitcoin opponents who criticize various properties. First and foremost they criticize the lack of regulations, high transaction fees or the energy consumption during mining. Other critics are still convinced that the first crypto currency is a huge bubble. Bitcoin is a currency for criminal Internet gangsters.
Lack of adaptation
Apart from the contras mentioned above, quite a few users doubt the rapid spread of Bitcoin. To many people, the block chain technology seems like a book with seven seals and the purchase appears to be a complex undertaking. However, this could change soon if PayPal’s alleged plans come true. Last week, for example, several sources reported on a timely integration of cryptoassets. With more than 270 million users, such a step would certainly be an enormous step towards the mainstream.
Bitcoin course current
At the start of the weekend, the BTC can be caught at a price of 9204 USD. The support area at 9200 USD could turn out to be important support again. From a bullish perspective, the coming resistance levels are now at 9400 USD and 9600 USD. At the time of writing, the BTC Dominance Index is at 64.4%. According to this, the Altcoins are gaining ground, but Bitcoin is holding all the reins.