Bitcoin has crashed but it is still the future

Question

https://cryptocoincharts.info/pair/btc/usd/btc-e/1-year

Hey, Bitcoin's value went down recently. But many still believe it is the future. Below are the reasons why Bitcoin is preferred over paper currency.

• Bitcoin is limited in supply. 21 million is the maximum number of bitcoins that can exist. It will be reached in the year c. 2140.
  
• The US dollar has no such limit, the government can produce an unlimited number of bank notes which will make the value of the money in your hand lower.
  
• There are no transaction fees for bitcoin. You can send it directly to your friend, no bank, no 3rd party in between.
• There are transaction fees charged by banks to send and receive the paper money.
• You don't have to pay tax to the government since the government can't track it properly.
• You have to pay tax for the paper currency.
• There are no fake bitcoins.
• There can be fake currency notes.

You may ask who produce the bitcoins and how it made?

1. Bitcoins are produced with computers with more resources, the people run their computers for hours to produce a small value of Bitcoin.
   
2. Bitcoin is currently seen as "Internet Gold" rather than a currency. It takes a long time before everyone starts using bitcoin as a currency.
   
3. Should you buy bitcoin, the value of the bitcoin goes up and down. So, it's a risk.
   
4. Arizona proposed a bill which makes taxpayers to pay tax in Bitcoins - https://www.express.co.uk/finance/city/917015/bitcoin-tax-cryptocurrency-tax-bitcoin-price-cryptocurrencies-news
   

These all are my understandings but never bought or used bitcoin before.

Answer 1

The Bitcoin looks like an interesting opportunity, allowing to escape costs and fees (but which might harm the related job sectors) and taxes (boosting tax frauds, gambling and illegal business, and involving significant risks), as it is already used for much less transparent transactions. There is indeed no backing authority, no means of control, regulation, investor protection and legal frames, and a "wrong click" (giving access to hackers) can cause the loss of whole fortunes, without leaving any trace.

In any case, you need to be very well informed, and even professional experts need to take quite a few precautions:

https://www.forbes.com/sites/timothylee/2013/04/03/four-reason-you-shouldnt-buy-bitcoins/#d0d3e8cd6348

Answer 2

I've been doing a little reading about bitcoin and still have a lot to learn yet. So, I'm not ready to invest in it till I know all the facts. My financial advisor has talked to me some about it also and when we meet at the end of the week? I'll know more and whether I should use it at this time. It's still unstable from what I hear but eventually, it will be the future.

Comments

I won't recommend investing huge amount in Bitcoin, but one can invest a small amount to gain the knowledge about how it works. Small amount = the amount which one doesn't care if he loses it.

Answer 3

Bitcoin can be future of business. I did not learn much about it. Time will pass untill people meet Bitcoin.

Answer 4

I do not understand bitcoin, but my question is what good is a currency that can lose a large fraction of its value practically overnight?  It sounds more like commodity investing.

Answer 5

Dear Dan,

Yes, I do think cryptocurrency, something like bitcoin, is the future of finance. However, bitcoin is still a long way from safe for non-experts. I found an interesting article in the INDIA TIMES/ECONOMIC TIMES last fall, which gives some difficulties people are encountering.

Such as, when you try to cash in your profits, all you get is an error message on your computer screen. Then when that finally got resolved, you still could claim only part of your money. Or, sometimes you might only be allowed to cash in your profit for another cryptocurrency!

Also, bitcoin is prone to bubbles, that devastating flaw of our economic system. As of yet, all these problems have kept the cryptocurrencies from becoming mainstream in India!

https://economictimes.indiatimes.com/wealth/invest/7-reasons-why-you-should-not-invest-in-bitcoins-cryptocurrencies/articleshow/60891341.cms