Why Bitcoin isn't a legit currency.

[Dikiramdani]

The first purchase using bitcoins was in 2009 when someone bought 2 pizzas for 10,000 bitcoins. Today, that would be worth $83,746,850. Many people have started to use Bitcoin and it is now the most popular cryptocurrency in the world. Many countries whose currencies have become hyperinflated have thought about switching their national currency to Bitcoin. For something to be classified as money, it needs to be a good unit of account, medium of exchange, and store of value. Since Bitcoin has become extremely popular, I wanted to explain to investors and Bitcoin users that Bitcoin isn't a legit currency. The main three reasons why Bitcoin isn't a legit currency is because it is a poor unit of account, medium of exchange, and store of value.
   One of the big three parts of a currency is that it is a good unit of account. For something to be a unit of account, people have to be able to compare its price to the prices of alternative retail goods. Since the value of a bitcoin changes so much, it would be hard and confusing for both the consumer and the seller to recalculate the prices every day. “Because the value of a bitcoin compared to other currencies changes greatly on a day-to-day basis, retailers that accept the currency have to recalculate prices very frequently, a practice that would be costly to the merchant and confusing to the consumer.” This quote from David Yermack’s article Is Bitcoin a Real Currency? An Economic Appraisal Bitcoin shows why Bitcoin isn't a good unit of account. That is one reason why Bitcoin can't be a form of currency and why Bitcoin isn't a legit currency.
   The second part of something that is classified as a currency is that it is a medium of exchange. A medium of exchange is an intermediary instrument used to facilitate the sale, purchase or trade of goods. Since bitcoin doesn't have any intrinsic value, so its worth is held up by its usefulness as a currency in the consumer economy. The Youtube video “Why Do Banks Fear Bitcoin” by VisionVictory explains that there is a set amount of Bitcoins and by the year 2140, there will be a total of 21 million bitcoins. Miners have already mined 11.9 million of them, and this means that there is only 9.1 million left. Once all of it is mined, there won’t be any more left to be mined. Dollar bills can be printed by the U.S. government if they were needed. Some more reasons why Bitcoins isn't a good medium of exchange are that Bitcoins transactions each take around 10 minutes each, which is very slow compared to using a credit or debit card, which takes a few seconds. Also, Bitcoin transactions can cost around $20, which is extremely expensive. Because of all of these reasons, Bitcoin can't be a good medium of exchange, which is very important if it were to be a legit currency.
   The third and final part of a currency is that it has to be a good store of value. A store of value means that the function of an asset that can be saved, retrieved and exchanged at a later time. In the long podcast on Youtube by Paul Vigna & Michael Casey: ‘The Age of Cryptocurrency’, they explain what a decentralized currency is. Bitcoin is an atrocious store of value and one of the reasons why is because of its constant hacking attacks and other security problems. This is mostly because Bitcoin is decentralized, which means that there is no central authority that can stop any Bitcoin transaction or any hacking attempts. One of the reasons why Bitcoin is so popular is because people can stay anonymous and make transactions without people knowing who they are. The downside of using a decentralized currency is that people can do illegal things anonymously and get away with it. And also, Bitcoin’s exchange rate has no correlation at all with any other big currencies like the Dollar, Euro, and Yen. This makes Bitcoin extremely risky to use because it is tethered to any other currencies so its’ value would change constantly. This shows how terrible of a store of value Bitcoin is and why it cannot be a legit currency.
   Tons of people are jumping on the “Bitcoin Bandwagon” without doing their own research on it, and they’re going to lose a lot of time and money because of this. They need to realize that Bitcoin is not a legit currency because it fails to be a unit of account, medium of exchange, and a store of value.

The legitimate currency is the currency legally sanctioned by the state like fiat money. Bitcoin is not created by the government so bitcoin is illegal and bitcoin will not be a legitimate currency before the government legalizes it.

[bjmpoker001]

i don't think it is not legit, it is legit because peoples buy it with real money.
And why the price very high ? it is simple, because bitcoin price accumulated from the beginning.
Starting from less than $1, peoples bought it and sold it with higher price, and this is repeating until the point where bitcoin price very high.

[Damar]

Virtual Currency is not included in the definition of rupiah currency, Virtual Currency, he added, is very risky and full of speculation because no authority is responsible, there is no official administrator, there is no underlying asset under the virtual currency price, and the value of trading is very volatile .

[Rarahumaira]

Maybe bitcoin can not be called legit currency because bitcoin itself still does not have good stability. Bitcoin is still difficult to predict every development value and price in the market. So most people are still unsure of bitcoin. But maybe in the future when bitcoin continues to grow bitcoin will become a legit currency.

[KID_28]

Anytime soon i think it will be legit. Government are the ones that are not supporting the legitimacy of bitcoin. I think they scared that they cannot control bitcoin as cryptocurrency as much as they control the fiat currency.

[Stephen Martinss]

Such a long post! I agree with you that Bitcoin fails to replace fiat currency. But it is created not to become a national currency and even that is not of much importance. Actually, with the underlying technology known as Blockchain, no one can take control of Bitcoin. For that reason, even when a country take it as their main currency, the country can hardly get it regulated and traced.

[Shirley Menezess]

There are motives for which Bitcoin isn't gonna be an official currency. Bitcoin is a perfect tool for illegal activities. Criminals can take advantage of Bitcoin to store money, or the rich may invest in Bitcoin not to pay taxes. Moreover, clever trickster use Bitcoin to scam money from greenhorns. Many more problems is hindering Bitcoin to get legitimation. They're mostly objective problems.

[Fourgh]

Because it cant be controlled or can be monitored by the Government. No taxes can be collected in the blockchain that's why it is veru difficult to see it as a separate currency in the "Real World". Only a very few people view Bitcoin as a source of income, some people think it's just a virtual money with no real value at all.

[koldir]

now there is no reason why the government does not want to give bitcoin the value of the legal currency, it is entirely logical. Despite its superiority and many positive aspects, in bitcoin for a long time will only see fraud. It is very sad. But on the other hand, there are also many little pleasant things that can happen with the legalization of bitcoin. They are variable and dangerous for the economy

[sneeze11]

The first purchase using bitcoins was in 2009 when someone bought 2 pizzas for 10,000 bitcoins. Today, that would be worth $83,746,850. Many people have started to use Bitcoin and it is now the most popular cryptocurrency in the world. Many countries whose currencies have become hyperinflated have thought about switching their national currency to Bitcoin. For something to be classified as money, it needs to be a good unit of account, medium of exchange, and store of value. Since Bitcoin has become extremely popular, I wanted to explain to investors and Bitcoin users that Bitcoin isn't a legit currency. The main three reasons why Bitcoin isn't a legit currency is because it is a poor unit of account, medium of exchange, and store of value.
   One of the big three parts of a currency is that it is a good unit of account. For something to be a unit of account, people have to be able to compare its price to the prices of alternative retail goods. Since the value of a bitcoin changes so much, it would be hard and confusing for both the consumer and the seller to recalculate the prices every day. “Because the value of a bitcoin compared to other currencies changes greatly on a day-to-day basis, retailers that accept the currency have to recalculate prices very frequently, a practice that would be costly to the merchant and confusing to the consumer.” This quote from David Yermack’s article Is Bitcoin a Real Currency? An Economic Appraisal Bitcoin shows why Bitcoin isn't a good unit of account. That is one reason why Bitcoin can't be a form of currency and why Bitcoin isn't a legit currency.
   The second part of something that is classified as a currency is that it is a medium of exchange. A medium of exchange is an intermediary instrument used to facilitate the sale, purchase or trade of goods. Since bitcoin doesn't have any intrinsic value, so its worth is held up by its usefulness as a currency in the consumer economy. The Youtube video “Why Do Banks Fear Bitcoin” by VisionVictory explains that there is a set amount of Bitcoins and by the year 2140, there will be a total of 21 million bitcoins. Miners have already mined 11.9 million of them, and this means that there is only 9.1 million left. Once all of it is mined, there won’t be any more left to be mined. Dollar bills can be printed by the U.S. government if they were needed. Some more reasons why Bitcoins isn't a good medium of exchange are that Bitcoins transactions each take around 10 minutes each, which is very slow compared to using a credit or debit card, which takes a few seconds. Also, Bitcoin transactions can cost around $20, which is extremely expensive. Because of all of these reasons, Bitcoin can't be a good medium of exchange, which is very important if it were to be a legit currency.
   The third and final part of a currency is that it has to be a good store of value. A store of value means that the function of an asset that can be saved, retrieved and exchanged at a later time. In the long podcast on Youtube by Paul Vigna & Michael Casey: ‘The Age of Cryptocurrency’, they explain what a decentralized currency is. Bitcoin is an atrocious store of value and one of the reasons why is because of its constant hacking attacks and other security problems. This is mostly because Bitcoin is decentralized, which means that there is no central authority that can stop any Bitcoin transaction or any hacking attempts. One of the reasons why Bitcoin is so popular is because people can stay anonymous and make transactions without people knowing who they are. The downside of using a decentralized currency is that people can do illegal things anonymously and get away with it. And also, Bitcoin’s exchange rate has no correlation at all with any other big currencies like the Dollar, Euro, and Yen. This makes Bitcoin extremely risky to use because it is tethered to any other currencies so its’ value would change constantly. This shows how terrible of a store of value Bitcoin is and why it cannot be a legit currency.
   Tons of people are jumping on the “Bitcoin Bandwagon” without doing their own research on it, and they’re going to lose a lot of time and money because of this. They need to realize that Bitcoin is not a legit currency because it fails to be a unit of account, medium of exchange, and a store of value.

I think they only thinking it but it is a legit currency because there are so many person that are working here and make this currency legit. I think government only making bitcoin not a legit curency.

[TaxiKorento]

Because it can be easily use by scammers and hackers and aside from that the market price is very volatile which is hard for payment options as market value of bitcoin may change in seconds that may cause also changing the price of commodities we are buying.

[moshk555]

Legit currencies have a few prerequisites one of which is that it should be centralized, bitcoin is a democratic currency which is decentralized in nature meaning there is no central bank that regulates and monitors its price value, also bitcoin is not a physical currency, since it is digital in nature, it's not considered legit.

[Jossy111]

It can't be a legit currency until is centralised and when government legalized it across d nations of the world, then  we can be looking at  given it a voice and a stand as legit internet money for all nations.

[Kate Beckett]

Bitcoin is legit, but not in all countries. In countries that have recognized bitcoin and granted it a legal status, bitcoin is considered quite legitimate. However, there are countries that have not yet decided what bitcoin is for them and how to interact with it. Countries are too difficult to reach a consensus on this because governments have different visions of crypto-currency.

[mudasarali43]

Bitcoin is legally in many countries but due to decentralization it is free and everyone can use it without any hesitation, I think you don’t say it Bitcoin is legit currency,

[cryptokingdom]

I know government have to play a vital role in bitcoin becoming a legit currency but bitcoin can be use as a medium of exchange by an individual for goods and services without government approval just the same way trade by barter was done in the olden days.

[bitcoinking11]

It is very unfortunate to consider bitcoin a illegal currency, as the governments all around the globe consider it a threat to their traditional financial system. Some have changes their mind and others would follow soon.

[xk85jq]

 
    Bitcoin isn't legit currency yes it is, bitcoin right now still government not recognizing on it but if bitcoin will be recognizing to the government itself hopefully. We cannot use also publicly because still our own currency circulating to the public.So bitcoin will be a national reserved currency in the sentral bank.the benefit of that is easy to transanct to any bank institution.

[joliepaul]

a simple term is to get a centralized state it has not been valued at all as a legal currency in the world. It is very costly. So to what extent it can be a lawful stance unless it is totally acknowledged by any nation or government!

[robaya]

I do not know for sure why it happened, but in my country bitcoin can not be legalized because no one can control its regulation, and also the nature of cryptocurrency is very fast up and down. this makes my country does not consider bitcoin as a currency but only as a risky investment asset.