Why Some People Are Skeptical about Bitcoin

Bitcoin was created in 2009 by Satoshi Nakamoto as a solution to the 2008 financial crisis. However, this digital money is entirely decentralized, meaning there is no central legal entity that can control its operations. On top of that, this digital currency has an underlying technology known as the blockchain, a public distributed ledger that stores and shows all the Bitcoin transactions. However, investors can trade Bitcoin via exchanges like bitprofit.software, and they will benefit from the volatility of Bitcoin.

On the other hand, not everyone has wholly adopted this virtual currency. Some people are still skeptical and doubt the viability of this electronic currency. Here is why some people are still unsure about this electronic currency.

Lack of a Central Regulatory Body

As stated earlier, the central bank cannot interfere with the Bitcoin system nor control how it works. Additionally, some countries are yet to legalize this digital currency, while others have banned their citizens from trading this electronic currency in China. However, a country like El Salvador has made this virtual money a legal tender in their country. 

A powerful country like China has the power to make people doubt the worth of this digital currency. People are still uncertain about whether to accept this virtual currency, leading to skepticism. As a result, China has made people remain confident that this electronic currency is not sound. 

Lack of a Physical Form

This digital money does not have a physical form. Therefore, people cannot use it in physical stores because it exists on a decentralized network of computers. Moreover, this electronic money does not tie to any specific physical commodity. As a result, the lack of a physical form leads to a lack of physical evidence to support the existence of this electronic currency. 

It is not uncommon for people to find it hard to invest in a currency that has no physical form. On top of that, no central bank regulates this electronic asset’s daily operations. As a result, investors avoid investing in this digital currency due to the fear of getting scammed. 

Volatility

This virtual currency is notoriously volatile since the price of this digital currency can fluctuate drastically in a matter of minutes or hours. The value of this electronic currency can also increase drastically. Therefore, people are still skeptical about investing in a crypto asset that does not have a stable price. Most investors prefer to invest in a regulated currency with the backing of a physical commodity that has a stable value.

On the contrary, volatility appeals to some investors who believe that the price of this digital currency will increase in the long term. 

Social and Digital Media Influence

The social and digital world holds a lot of influence such that when they trash this digital currency, most people will not invest in this electronic asset. On the other hand, if the media endorses this virtual currency positively, there will be an increased adoption rate of this virtual currency. 

However, many news channels are always trash-talking about this electronic money. As a result of the enormous following they command, people will remain skeptical about this virtual money. 

The Carbon Imprint

Mining is one of the most popular means that people can acquire and own this virtual currency. The mining process, however, requires a lot of energy. As a result, the carbon imprint generated because of mining this virtual money is a significant concern to some countries. In the end, the fears of the carbon imprint encourage skepticism against this virtual money.

Final Thoughts

Bitcoin is among the most traded cryptocurrencies, with investors making huge returns from Bitcoin investments. However, some people are still skeptical about investing in this virtual money.