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Not only is Bitcoin (BTC) the first cryptocurrency, but it’s also the best known of the more than 19,000 cryptocurrencies in existence today. Financial media eagerly covers each new dramatic high and stomach-churning decline, making Bitcoin an inescapable part of the landscape. However, you still need to check out a few important details before buying. Is BTC a scam? Let’s find out the answer.
  • Launched in 2009, Bitcoin is the world's largest cryptocurrency by market capitalization.​
  • Unlike fiat currency, Bitcoin is created, distributed, traded, and stored using a decentralized ledger system known as a blockchain.​
  • Bitcoin's history as a store of value has been turbulent; it has gone through several boom and bust cycles over its relatively short lifespan.​
  • As the earliest virtual currency to meet widespread popularity and success, Bitcoin has inspired a host of other cryptocurrencies in its wake.​

Is BTC (Bitcoin) a Scam?​

Being a virtual currency, it still seems mysterious and untrustworthy to some. If you’re thinking about investing in bitcoin, it’s important to get a good understanding of the advantages and disadvantages of the blockchain protocol. Let’s learn about both bitcoin’s strengths and weaknesses, so you can make an informed decision.

Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank. Bitcoin’s creator, Satoshi Nakamoto, originally described the need for “an electronic payment system based on cryptographic proof instead of trust.”

BTC (Bitcoin) Pros​

Here are the most commonly brought up Bitcoin advantages:​
  • Bitcoin is the most open financial system to date. You can make payments with Bitcoins 24/7 all over the world, even where there’s no banking system.​
  • It’s permissionless. Anyone can access the Bitcoin network. It doesn’t matter where you live or how much money you have, it’s an open peer-to-peer network that everyone can use. Being permissionless is important to us at Cointree, as we imagine a future in which the digital economy is accessible to all.​
  • Bitcoin has valuable features for business, too, such as multi-signature authorization and accounting transparency. Multi-signature means that several people need to sign off on a payment, which provides more security. And the very nature of a blockchain – where all transactions are public – improves a business’s transparency.​
  • Compared with other cryptocurrencies, Bitcoin has the most brand recognition, liquidity, most developed ecosystem, and most acceptance among various retailers and organizations.​
  • Fixed supply. Unlike fiat currencies like the US dollar, governments cannot print bitcoin whenever they want more money. There will only ever be 21 million bitcoins. The importance of that scarcity is highlighted in the stock-to-flow model.​
  • Transparent and Decentralized. It means that almost no sketchy transactions can pass under the radar. There are always people watching, and in fact nodes on the network have to unanimously approve all transactions submitted. It also means that you don’t have to trust an organization to keep your wealth safe, and you don’t have to go through them to access your money.​
  • Not Connected To The State. Since the currency is decentralized, it is not controlled by anybody, and specifically not by any government or state. This means that the political actions they make have no influence on the value of the currency, nor do things like exchange rates.​

BTC (Bitcoin) Cons​

The most commonly mentioned Bitcoin cons include:​
  • Regulatory risk: The lack of uniform regulations about Bitcoin (and other virtual currencies) raises questions over their longevity, liquidity, and universality.​
  • Security risk: Most individuals who own and use Bitcoin have not acquired their tokens through mining operations. Rather, they buy and sell Bitcoin and other digital currencies on popular online markets, known as cryptocurrency exchanges. Bitcoin exchanges are entirely digital and—as with any virtual system—are at risk from hackers, malware, and operational glitches.​
  • Volatility. Bitcoin is highly volatile compared to other assets like property. While that’s to be expected with any fast-growing asset, and has been a boon for traders, it can be hard to stomach at times for long-term investors. As always, risk management is critical in such a market.​
  • Possibility Of A Shortage. As we mentioned earlier, the maximum number of BTC that can ever exist is 21 million. While this is seen as an advantage to many, it could also be a disadvantage. Nobody is sure why the creator, Satoshi Nakamoto, decided to cap the creation of BTC at 21 million, and the number seems fairly arbitrary. Nevertheless, while it does mean that the currency has long-term value, it may mean that it will be difficult to acquire ownership of BTC in the future.​
  • Fraud/theft is a serious issue. By no means are cryptocurrencies the only asset to be hacked by thieves, but there are serious fraud and theft concerns that accompany bitcoin. For instance, novice bitcoin investors may not understand the need to store their tokens in a digital wallet, thereby leaving them susceptible to theft by hackers.​

BTC (Bitcoin) - Traders’ thought​

While many people trust and invest in BTC( Bitcoin), others think that BTC is useless, time wasting or even think that it is not real.

A reviewer has written that - “The problem with Bitcoin is not that it ‘isn’t backed by anything’. It is sort of a weird problem, absolutely. While Bitcoin enthusiasts insist that real money isn’t ‘backed’ by anything, that’s not quite how it actually works”

Another reviewer thinks that - “There are many conceptions around bitcoin investment(bitcoin mining) . People think that it might not be the best for them to invest in bitcoin. Some people are skeptical about bitcoin because both the experts and hackers have made it difficult to start investing in bitcoin. Experts have different opinions about the future of bitcoin, and scammers make people worried about losing their investment.”

Overall, It’s unregulated, volatile and can’t be used as widely as traditional currencies. The amount of energy used globally to make Bitcoin work is also massive. It has the same carbon footprint as the entire country of Argentina, according to Oxford University researchers. This has raised questions about the long-term sustainability of the phenomenon, especially as global economies strive to reduce their greenhouse gas emissions in line with international environmental agreements and associated ‘green’ targets.

Bitcoin has a short investing history filled with very volatile prices. Whether it is a good investment depends on your financial profile, investing portfolio, risk tolerance, and investing goals. Whether you use it or not is up to you. It’s helpful to remember, however, that everything comes with advantages and disadvantages, even fiat money. You should always consult a financial professional for advice before investing in cryptocurrency to ensure it is right for your circumstances.

Now that you have reached almost the end of this review. Is BTC(Bitcoin) A Scam? Leave your impressions about BTC at the comment section down below.

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