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Why Bitcoin? Advantages and Disadvantages of Bitcoin

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advantages of bitcoin

Ask any bitcoin newbie why bitcoin is the best and they will spew some buzzwords and jargon at you.  

There is a difference between bitcoin maximalist and a bitcoin newbie.  

Bitcoin Maximalists have learned about the technology and know this to be the right answer to the problems of traditional commerce. They will never part with their belief even if the bitcoin’s value in fiat goes to zero. They have no regard for fiat.

Bitcoin newbies on the other hand have read a bunch of books and blogs, watched some self-proclaimed experts on YouTube, they may have even attended some seminars and they have gathered proof to support whatever they want to believe.  

This belief could be that Bitcoin is the best thing or bitcoin is the biggest scam.  

A newbie forms opinion first and then consumes information that cements that opinion.  

If you are a newbie, we give you 50 reasons below why Bitcoin (coin and blockchain) deserves all the attention it is getting and more. We are not making a case for or against bitcoin, we are just going to list out reasons why the price of bitcoin in fiat does not matter.  

Each reason is merely stated and not elaborated as each of these reasons could be a topic in their own right.  If you are a newbie (we too are, so we are not calling you out), dig into each of these reasons with an open mind and a zeal to learn.

 

Advantages

 

1

Trust
One of the most fascinating ironies is that bitcoin creates trust through a trust less network.

2

Fees
This shouldn’t be the second reason, but we couldn’t resist. Someone moved BILLION dollars worth of Bitcoin in 2019 for a network fee of $750. If you are focusing on the fees in fiat - you are missing the point - someone moved a billion dollars without the help of a bank-clearing house-waiting period-paying a big cut in fees, etc.,

3

Limited Supply
Governments can print as much money as they want and they do. Sometimes they print money off the books to fund international secret missions. All of this money eventually joins the circulating money and that dilutes the value of fiat. Bitcoin will never have more than 21 Million coins.

4

Earn interest without the minimums
While the world is moving toward negative interest rates, that is, you have to pay the bank to keep your money, many companies in Crypto are offering interest on your bitcoin without minimums (we like Celsius Network).

5

Permissionless
You do not need permission from your bank or government to take part in the bitcoin network.

6

Free to build
If you have the knowhow to build something - you can freely do so on bitcoin network. Bitcoin technology is free for all to use and build better projects, even better bitcoin.

7

Trajectory
There were 2 bitcoin wallets in 2011, as of this writing that number is at 43,400,000 and it keeps growing. Increasing wallets means increasing awareness and increasing penetration of bitcoin.

8

Accessibility
No matter where you live in the world, you can access the Bitcoin network as long as you have the internet. This gives unique power to people of all nations.

9

Immutable
A transaction on the bitcoin network cannot be deleted or hidden and this immutable nature of the bitcoin blockchain is what got this revolution started.

10

Immortal
Transactions on the bitcoin network are immortal. No matter how much time has passed, you cannot cover up transactions over time.

11

Millennials
Millennials form 35% of the workforce today and millennials trust bitcoin more than banks, that is a strong indicator that bitcoin is going to be embraced by future generations.

12

Security
Bitcoin continues to be one of the most secure open networks out there. As more and more projects build on top of the bitcoin network, it only increases its strength.

13

Fake Fiat
Many financial gurus believe that the ‘print at government’s whim’ paper is running out of juice and it's not too long before countries follow suit of Argentina, Venezuela, etc.,

14

Hack-Resistant
Barring the Value Overflow Incident of 2010, Bitcoin network has not been hacked since.

15

Dying Economies
In 2011, Argentina Peso was trading at 4:1 against USD. Today, it is 60:1; Inflation, wars, political unrest, unhealthy debt to GDP ratios, corruption and corporate greed are killing economies and people need a hedge that helps them not only save their life-savings but to grow them. Bitcoin has done an immaculate job at it for the past decade.

16

Deflationary
with each passing year, the amount of new bitcoin that gets created reduces. In fact, in 2020, the supply will go from 12.5 bitcoins to 6.25. This same year, Fed has printed over 6 Trillion (and counting) in Fiat out of thin air.

17

Safety
As long as you keep your private keys safe, your bitcoin will be safe. Banks can call bail ins, safes can be broken and bank accounts hacked. Bitcoin is far safer to existing options.

18

Speed
As the lightning network and other upgrades become available - bitcoin transactions can be lightning fast. Right now, it takes under an hour (which is lightning fast compared to other modes).

19

Transparency
Everyone can access the bitcoin network and check transactions. You can build your own program to read and decipher the data on the bitcoin network.

20

Revolution
Bitcoin is born out of the ashes of 2008 market crash as an alternative to traditional systems. By taking part in bitcoin - you are taking part in a revolution.

21

Liquidity
When the stock market goes down a certain percentage - it can be shut down to stop the carnage. When bitcoin lost 50% value in one day recently - it continued to trade.

22

Micropayments
Can you tip 2 cents using your bank or credit card? With Bitcoin (and lightning network like upgrades) - you can enable a micropayment economy. So instead of saying ‘good job’ on a blog - you can tip 5 cents or $200000, whatever you want to.

23

Weightless
You cannot carry a ton of gold that values at about 65 million dollars without wasting a lot of resources, time and money, however, people have moved Billions of dollars worth of Bitcoin in minutes with almost no effort.

24

Borderless
Whether you travel across the State or country - your Bitcoin stays with you (as long as you protect your private keys). If you try to carry fiat cash across the borders - it can be confiscated and seized.

25

First
Humanity has fascination about ‘firsts’. Bitcoin will always hold a special place in the hearts of crypto fanatics and future generations.

26

Potential
Bitcoin’s network in its current state is like the internet in the 90s. We have not even scraped the potential of Bitcoin & Bitcoin blockchain yet.

27

One currency
The dreams of ONE global currency could be realised over the Bitcoin network. Because it is not controlled by any one nation - it is easy to trust it as ‘one global currency’. Bitcoin Maximalists will tell you that bitcoin was not built to be a currency...so make sure you tread carefully with them on this point.

28

Traceable
When someone commits a crime using paper cash - you cannot trace the source (or at least it's nearly impossible when they do unmarked bills) - with bitcoin - it is far difficult to commit crimes since it can be traced back anytime after the transaction has taken place.

29

Bureaucracy
The current rigged financial system of privileges for the rich and penalties for the poor will not apply to bitcoin.

30

Bullying
Countries bully each other all the time. Before Bitcoin, countries with limited resources had no option but to succumb to the powers. With Bitcoin, they can resist the bullying. Like Marshall Islands did.

31

Not good for criminals
Bitcoin has a history of helping authorities bring down nefarious activities on the internet. Infamous Silk Road to recent crack-down, Bitcoin is a Dark Knight of sorts.

32

Hedge
Gold as a hedge is still a great alternative, however, you cannot carry or spend your gold in need. Bitcoin is growing rapidly in its popularity, which means, the probability of you finding a food store that accepts bitcoin are FAR higher than finding a store that accepts gold.

33

Sanction proof
Countries that are facing US sanctions are turning to Bitcoin to circumvent the limitations

34

Math powered
The unique algorithm of Bitcoin makes it infinitely stronger with forces joining the network each day.

35

Unbanked
There are a lot of people in the world who do not have access to the basic banking system. They do not meet the criteria set up by the institutions to participate in the economy. Bitcoin dismantles those barriers - anyone can participate in the bitcoin powered banking system. Create a wallet in seconds and start accepting payments, it’s that easy.

36

Control
As long as you own your own private keys, you own your bitcoin. Your bank or government can freeze your bank account; no one can freeze your bitcoin.

37

Freedom
Financial institutions decide what you can or cannot do with your money. Most folks remember when banks said - you cannot buy bitcoin with YOUR money in OUR banks. That won’t be the case with Bitcoin.

38

Regulatory resistant
Regulators can go at Libra but not Bitcoin because bitcoin runs on math, not politics.

39

Prude resistant
Paypal decided to stop payments to Pornhub models, why? People want to act as morality police (as long as something is not illegal, let people live their own lives) and Bitcoin is morality policing free.

40

Gig economy
More and more people are deciding to work for themselves, to get approval from a bank or financial institution to participate in the economy is a herculean task. That is why over 2 Billion people are unbanked in this day and age. Bitcoin and other technologies built on blockchain are helping the gig economy to participate in the economy.

41

Global commerce
Bitcoin and blockchain technology open the global commerce. Anyone can transact with anyone in the world without permission (legal ofcourse). You don’t need 15 banks interacting to complete a transaction and eating heavy fees in the process. End users can transact directly without mediation and facilitate global commerce.

42

Divisibility
Can you divide the dollar beyond 100 cents? And can you transfer 2 cents to someone? You can divide bitcoin 10 million fractions, called satoshis. We may soon see a world where people transact in satoshis instead of whole bitcoin.

43

Future ready
The US wants to build digital dollars since they are starting to understand that fiat needs to upgrade otherwise it could go extinct. Bitcoin has been future ready, in fact, it has laid the foundation for a new internet to build the future on.

44

Digital gold
Many consider bitcoin as Gold 2.0 or digital gold because it is much rarer than actual gold itself. In the near future, owning 1 whole bitcoin could be impossible (for some, at current fiat prices, it is). You don’t have to own bitcoin to take part in its ecosystem. It takes ZERO bitcoin to create your wallet or to accept payments in Bitcoin. You cannot participate in the gold ecosystem if you don’t have fiat or gold. In this regard, Bitcoin is better than gold!

45

Safe Haven
Being Gold 2.0 and deflationary makes bitcoin a safe haven for many citizens from the economies that are on the verge of collapse. The US Dollar may have some mileage left but fiat around the world is facing an existential crisis.

46

Internet of future
Current centralized internet system cannot support the future of Artificial Intelligence, Augmented reality, autonomous cars, drone delivery economies. We need new technology that can support an automated world, blockchain is that technology and bitcoin brought that to the world!

47

Global Reserve
As fiats around the start to stumble, we might see bitcoin emerge as the new global reserve to back up the fiat systems.

48

Programmable money
Can you write a program on top of the US dollar? You can on bitcoin. Bitcoin brought the ‘programmable’ money concept to life and now it is a reality that many are using to build the future.

49

Owning a piece of history
Owning bitcoin is more than owning digital currency. It is owning a piece of history in making while it is being made. Tech pundits say that Blockchain opens the world to infinite possibilities that the internet alone could not bring about. The Blockchain revolution started with Bitcoin.
 

This one reason of owning a piece of technology, a piece of history by owning bitcoin trumps all other reasons as to why it’s price in fiat doesn’t matter.

Is bitcoin infallible?

As awesome as it is with Bitcoin, there are definitely some disadvantages:

 

Disadvantages

 

1

Bitcoin blockchain
Being the first blockchain – bitcoin does not accommodate everything, like speed, smart contracts, flexibility compared to other newer blockchains; however, lot of innovation is taking place on bitcoin blockchain to bring all the features to bitcoin

2

Relatively new
that means – something better could take over the reigns from bitcoin, however, the credit still goes to bitcoin for sparking the revolution

3

Complex
People have lost their bitcoin with their computers and gadgets; people have lost their private keys; some people have passed away without passing on their bitcoins; we need newer services on bitcoin system that make it easy to attach ‘legal passage’ to the heirs;

4

No Insurance
As of this writing, if someone manages to get hands on your private keys and steals your bitcoin – there is no recourse to getting your funds back; in banking system, if you can prove your innocence – you can theoretically get your money back; Also, bitcoin can be traced infinitely – unlike fiat which once cashed vanishes from the system

5

Limited options at this point
Not all places accept bitcoin; the number of vendors accepting bitcoin is growing, but it is relatively less compared to fiat;

Thank you for reading and sharing this article and if you have spare satoshis lying around – consider donating.

CryptoTapas BTC Donation Address

Also Read:

“Bitcoin is Gold 2.0” says this millionaire who is buying $150,000 per month in Bitcoin and Ethereum

9 Best Bitcoin Stocks You Can Buy and Hold in 2019-20

How to use bitcoin ATM? A step by step guide for beginners

How to Get Bitcoin for Free?

Busting the Myths of Cryptocurrency Market / Trading

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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