We’re All Afraid Of What We Don’t Know

Any new, disruptive technology will have its fair share of critics doing their best to limit its potential. And since Bitcoin is a new concept edging its way into the mainstream, it is not immune to negativity and unfavorable public perception. It is undeniable that the digital currency has its enemies, either real people or perceived notions. And while I do support Bitcoin and many of its causes, I have to admit that the concept has more than its fair share of flaws. The biggest two, in my opinion, being the whole idea of anonymity as well as the volatility from the stock.

The Bitcoin currency is ‘frictionless’. What this means is that there aren’t added costs associated with moving transactions through a mega-bank or credit card processor. These peer-to-peer transactions occur without any second look from a central authority. This sets up opportunities for criminals. The Silk Road, on online black market, operates solely on Bitcoins to sell things like drugs, weapons, etc.

These characteristics, naturally, lead to big risks in bitcoin, and subsequently, big volatility in the price of the digital currency. While bitcoin surged from about $13 in January 2013 to a peak of roughly $1,150 at the end of November 2013, prices were as low as $178 a few weeks ago. Such a wild range in roughly two years should show how speculative bitcoin is.

I think that if you’re looking to Bitcoin as the future of currency, you’re going to have to wait several years. All of the critics are using a criteria based around today’s currencies. (Many of which aren’t successful either) But if we look at Bitcoin as a revolutionary when of thinking, I think we’ll not only have more of an appreciation for it, but it will start to progress even more as well.

Raszl, Ivan. “Bitcoin: Benefits and Risks.” Blog of Ivan Raszl. Web. 4 May 2015. <http://raszl.com/blog/bitcoin-benefits-and-risks&gt;.