Blockchain or Blockheads?
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The phenomenon known as Bitcoin, which is a monetary system based on computation and complex algorithms, is a communal delusion.
Actually, millions of people have accounts with Coinbase, which is the leading marketplace for cryptocurrencies. Furthermore, the rush into the market has helped to raise its price. At the beginning of last year, a Bitcoin costs like a thousand bucks. Then, its price was near $20,000.
But Bitcoin is just another bubble. Actually, there are many signs of a bubble. Furthermore, companies are trying to take advantage of Bitcoin. For example, the company called Long Island Iced Tea increases the price of its shares nearly doubled after it announced that it would change its name to “Long Blockchain Corp.” They said that they would “pursue opportunities” in blockchain technology.
Some experts in cryptography and computer security are skeptical about bitcoin. Steven Bellovin, an adept in computer security said that it’s hard to trust a currency, which is “backed by the full faith and credit of software that has to be updated monthly.”
Matt Blaze (a security expert) recently tweeted: “cryptocurrency somehow combines everything we love about religious fanatics with everything we love about Ponzi schemes”.
Jim Harper (an executive vice president of the Competitive Enterprise Institute who served on the board of the Bitcoin Foundation) said that the promise of Bitcoin is to create a payment system people can use anywhere in the world with privacy and security. And the true value of Bitcoin will be in commerce, not speculation.
Actually, people that don’t know anything about Bitcoin are trying to invest their money, but they lost their money because its price decreased.
They are unaware of the speculation in Bitcoin. Actually, Bitcoin should be used for transactions with vendors who do not accept debit cards or PayPal. There are some real-estate companies that only accept Bitcoin payments. There are some vendors that only accept Bitcoin, and their clients must create a digital “wallet”, go to an exchange, and buy a small fraction of a Bitcoin.
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