Bitcoin, a well-known crypto currency, has become a prosperous land attracting lots of investment, especially in the last few years. Since its first being registered by Sakoshi Nakamoto in 2008, Bitcoin development has experienced wild volatilities. Nevertheless, considering the fast growing number of Bitcoin investors each day passed, many users now urge the goverment to legalize the utilization of Bitcoin. However, objectors hold several undeniable arguments against the widespread Bitcoin usage as a real currency.
The most notable feature of Bitcoins in comparison with a normal currency is its being digital instead of physical existence. In addition, unlike legal tender which is issued by a national bank under government permission, the number of Bitcoins in circulation depends on a special complicated process called mining. Not to mention the work of professional Bitcoin miners, the operation of Bitcoin transactions greatly contributes to the differences between this crypto currency and real ones. To purchase the crytocurrency, you may receive a complex code which allows to own a private virtual wallet serving for cashflow.
Why not a legal currency?
Bitcoin usage is not for exchange purpose
Peole use the official definition of a currency in circulation as a medium of exchange, which may not be the primary target of its utilization. Although some goverments have recently legalized the usage of Bitcoins to purchase things, the main purpose of Bitcoin’s holders seems to be investment, more precisely speculation. Lots of people buy the crytocurrency not to spend but live in hope to sell it at a much higher price in the future, which can prevent currency circulation as in normal market.
Wild fluctuations can cause worriness
Currently Bitcoin transactions are among unregulated sales, which are in general not subject to the provisions of any certain laws. This fact can provide both sides. One way, the crypto-currency can unlimitedly rise in price as it experienced in December 2017, for which all holders are seeking. In the other hand, its price can unexpectedly drop to the very bottom. This wild volatility causes it to be unsuitable for becoming a legal currency.
Bitcoin transactions saw wild fluctuations
Unlike physical currency that can promtly carry out the exchange task at ease, transactions relating to Bitcoins requires a rather costly and time-consuming process. Therefore, it may be troublesome, especially when using small purchases, which is a big part of our daily lives. Moreover, according to a report, mining process can consume a huge amount of electricity each year, which incurs both environmental and economic cost.