ㅤ

[Symmetrick]

ㅤ

[20kevin20]

Criticism #6: Bitcoin will be replaced by a competitor.

Response: While Bitcoin’s open-source software may be forked, its community and network effects cannot. Bitcoin makes trade-offs for core properties that the market deems valuable.

Quite often you can hear all sorts of prophecies that Bitcoin is doomed and the so-called Bitcoin killer is already ready, which is more technologically advanced and faster than it, but no matter how many such killers appear, Bitcoin with all its shortcomings still remains the NUMBER 1 cryptocurrency.

There's something that I've been wondering though, and I think it's quite interesting to think about it: Bitcoin solves a lot of the issues we are currently having with fiat and there are a ton of other forks and shitcoins that attempt to bring something new to the game, but they're all based on the approximately same technology behind them.

But I think it's interesting to think about the possibility of something different, that does not sit on a blockchain but a completely different concept, which has the advantages Bitcoin has plus others Bitcoin doesn't. Just imagine creating an entirely new concept that is truly decentralized and fair, while also being easy to use/understand and has way fewer requirements than Bitcoin currently does.

I personally think that a new concept that'd bring even more advantages than Bitcoin does has the capacity not to "kill" it as in destroying it, but to create a huge disinterest in Bitcoin vs the new thing. I often think about this as a pretty impossible thing, but it's as impossible as it was back in '07 to imagine Bitcoin could ever come to existence.

[Lucius]

One can criticize Bitcoin as much as one wants, but any criticism can be answered with a fairly well-founded counter-criticism as shown in the OP. 

"1. Bitcoin is too volatile to be a store of value."

What was that stable a few months ago when everything that is traditionally considered a store of value has lost its value? When someone loses their investment in BTC then it is a problem and when the same happens with stocks or gold then it is a normal occurrence.

"2. Bitcoin has failed as a means of payment."

The problem is not in the BTC itself (at least not completely), but let's be honest still its complexity when it comes to payments. In comparing card payments were sometimes no PIN or signature is required for authorization, you still need to have a little more technical knowledge to pay for something with Bitcoin. I’ve certainly paid with BTC hundreds of times over the years and it’s never been a problem for me - and the offer of online stores is growing every day.

"3. Bitcoin is wasteful."

In comparison with what? This false story is already so worn out that it is still pulled out of the closet only by complete ignoramuses or trolls for whom mathematics is not a strong point. The amount of energy consumed by electronic devices in stand-by mode in the US alone is many times higher than the total annual consumption consumed by BTC.

"4. Bitcoin is used for illicit activity."

The ratio of fiat to crypto in illegal activities is somewhere between 98% and 2%, maybe even more in favor of fiat - because criminals do not necessarily have to be smart, but they have obviously realized that it is much easier to control a blockchain than a fiat that goes out of hand in hand.

"5. Bitcoin is not backed by anything"

The greatest strength that BTC has is precisely the millions of people who own it and determine its value. They realize what they have in their hands, and that is definitely something better than a fiat that is backed by corrupt banks and rotten governments.

"6. Bitcoin will be replaced by a competitor."

Who says that? Those who have claimed and still claim that BCH or BSV is something much better than BTC, or the creators of the thousands of shitcoins who copied the original and most have failed within a year of appearing? Creating a crypto coin is the least problem, convincing people that it is better than Bitcoin is something that has very little chance of happening.

[Casdinyard]

~

Progress does not stand still and, perhaps, in a few decades, or maybe even earlier, we will witness the birth of an absolutely new technology, which in all respects surpasses everything previously created in the direction of digital currencies. So nothing is impossible and your thoughts may well turn into reality. 

Just having some questions: If one day further development takes place, will Bitcoin still be as popular as nowadays? And will its market value still be volatile? Not to be far from this topic but I guess Bitcoin being profitable makes it popular to many people and its volatility is attracting many investors towards it. How did I come up with this idea? Bitcoin is a digital currency which is created to provide convenience to its users as a mode of payment. So developments could be concerning stability in its price to be used in daily transactions, right?

Going back to the topic, this technology have faced many criticisms such as being a ponzi or fraud but people do still admire its benefits. Many cryptos tried to surpass its capabilities and usefulness but Bitcoin remained on top. To answer it in short, there's something in Bitcoin making it different from other cryptos and digital currencies in general.

[meanwords]

Most of this things will solve itself with time because Bitcoins Development has always been active all this time. In fact, if I remember correctly, there's a new system that the developers are developing to make Bitcoin faster and more secure but I forgot the name (anyone can point this out).

I just don't get why articles like this nitpicks minor details just to make Bitcoin look bad when in fact when you compare it to fiat currencies, Bitcoin will look like a safe haven for people who wants to save their money.

Wasteful? can be used for illegal activity? can be replaced by a competitor? Bitcoin is not backed by anything? did they mistook Bitcoin for fiats?

[Oshosondy]

It is common in life that many people will not know anything about something but they will complain about the thing, the complaint or view about the thing will be criticism and yet not constructive but pointless. I also have seen these points above to be pointless because bitcoin is just the opposite.

There is one I will wish Ratimov to add to it, many people said bitcoin is a ponzi scheme, and of which they are very wrong. I hope it will not be too long before they will realize their mistakes and start investing in bitcoin.  Bitcoin has been the most prosperous asset of the 21st century, it is created in a way it has brighter future in which its marketcap will be increasing and supoortimg the price to increase the more, bitcoin is the best money so far.

[webtricks]

Just having some questions: If one day further development takes place, will Bitcoin still be as popular as nowadays? And will its market value still be volatile?

Already, there has been a lot of development taken place in crypto space. Today we have blockchains which can process millions of transactions per hour at considerably low fees compared to merely 12-13K transactions per hour on bitcoin network.

But then why is Bitcoin still leading among all cryptocurrencies? Reason is simple, Bitcoin network is backed by thousands of supporters which has removed the possibility of single point of failure. The network strength has grown to such a level that a normal person can put complete trust on a transaction he made on bitcoin network. This is not true for other networks because almost all the other blockchains are dominated by single entity or organisation. With enough resources, it is possible to manipulate recent blocks of these blockchains.

So don't worry, bitcoin isn't going anywhere. If anything would happen, it would rather be an improvement in bitcoin network. This could be in the form of scalability solution like lesser witness size. If such improvement happens, mark my words, bitcoin will become much more popular as utility.

[Lorence.xD]

Criticism#1 is more of an advantage of crypto rather than criticism, to be honest if someone has the firm grasp on erratic volatility of bitcoin, they can earn a lot although there are some factors that is mixed aside from the volatility of bitcoin. Criticism#4 is just the downside of bitcoin, it was grounds for illicit activity yes but they are missing the big picture when they focus on it too much, in my opinion this is just a weak gut punch to bitcoin because almost anything good will be exploited in illicit and questionable ways no matter how much the creator crime proofs it. Criticism#6 is the ultimate BS, remember when OneCoin was introduced by CryptoQueen as the Bitcoin Killer, where is she now, and where is the proof that it killed bitcoin.

[Cnut237]

1. Bitcoin is too volatile to be a store of value.

Bitcoin is still in a relatively stage of its journey, and this is still a young market. This won't be the case forever. Compare bitcoin volatility with some lower cap coins - and bitcoin becomes a beacon of stability. As time goes on, as adoption increases and - crucially - as trading volumes increase, then volatility naturally reduces. Some commentators mistakenly assume that bitcoin's current state is its end state, when that is clearly not the case.

[royalfestus]

Rumour always have an element of truth, very little with the aim of misleading the audience. None of the criticism is new and bitcoin through all this till it achieve the present price and adoption.

5. Bitcoin is not backed by anything.

This is what Warren Buffet used to say, He doesnt understand how the coin is value and he refused understand what the new economic brings. It is not in their old economics from Benjamin Graham

[CODE200]

Just having some questions: If one day further development takes place, will Bitcoin still be as popular as nowadays? And will its market value still be volatile?

Already, there has been a lot of development taken place in crypto space. Today we have blockchains which can process millions of transactions per hour at considerably low fees compared to merely 12-13K transactions per hour on bitcoin network.

But then why is Bitcoin still leading among all cryptocurrencies? Reason is simple, Bitcoin network is backed by thousands of supporters which has removed the possibility of single point of failure. The network strength has grown to such a level that a normal person can put complete trust on a transaction he made on bitcoin network. This is not true for other networks because almost all the other blockchains are dominated by single entity or organisation. With enough resources, it is possible to manipulate recent blocks of these blockchains.

So don't worry, bitcoin isn't going anywhere. If anything would happen, it would rather be an improvement in bitcoin network. This could be in the form of scalability solution like lesser witness size. If such improvement happens, mark my words, bitcoin will become much more popular as utility.

Upon reading @Casdinyard reply, I think he is referring to the possible changes in the future. Indeed it is having wide range of support from its large community of users Today, which makes it on top of this technology. But we are all aware that majority of its supporters are investors. Bitcoin is a popular investment because of its volatile market value which has high rate of increase, generating profit to investor's end. But if someday its market price will undergo process of development, there's a possibility that its market value will be less volatile. And if that's the case, will it still be supported by investors if it is no longer profitable? making it the same with other digital currencies. We cannot really guarantee.

[pooya87]

1. Bitcoin is too volatile to be a store of value.
2. Bitcoin has failed as a means of payment.
3. Bitcoin is wasteful.
4. Bitcoin is used for illicit activity.
5. Bitcoin is not backed by anything.
6. Bitcoin will be replaced by a competitor.

only the first and possibly the third points here could be categorized as "criticism", number 2 and 4 is purely FUD, 5 comes from lack of understanding of what a currency truly is which has nothing to do with bitcoin and the last one is not even a criticism, it is a prediction that could be used in different contexts to mean different things. in context of advertising a shitcoin it becomes a lie, in context of manipulators becomes FUD and in other context it is stating the obvious that every technology is some day replaced by something else!

[charlesmichel1]

4. Bitcoin is used for illicit activity.

It's neither true, nor false. Like cash Bitcoin can be used for criminal activity, but it isn't the only use case.

[usekevin]

I found an interesting article on the most common criticism of Bitcoin: ADDRESSING PERSISTING BITCOIN CRITICISMS

6 most popular points of criticism, including:

1. Bitcoin is too volatile to be a store of value.
2. Bitcoin has failed as a means of payment.
3. Bitcoin is wasteful.
4. Bitcoin is used for illicit activity.
5. Bitcoin is not backed by anything.
6. Bitcoin will be replaced by a competitor.

Indeed, I think that many have come across in everyday life and on the Internet with similar statements, especially from people not from the crypto community, but from traditional finance. Very often, both in real life and on the Internet, I see this criticism about the fact that bitcoin is not backed by anything, that it is too volatile and in general it will end soon, because there are cryptocurrencies faster, more technologically advanced and cheaper. This article offers an explanation for all of this criticism:

Criticism #1: Bitcoin is too volatile to be a store of value.

Response: Bitcoin’s volatility is a trade-off it makes for perfect supply inelasticity and an intervention-free market. However, with greater adoption of bitcoin and the development of derivatives and investment products, bitcoin’s volatility may continue to decrease, as it has historically.

The article tells us that bitcoin has an inelastic supply and thus it is scarce and valuable; it is also not influenced by central banks and cannot control volatility in the markets. Bitcoin volatility is a trade-off for a distortion-free market.

Criticism #2: Bitcoin has failed as a means of payment.

Response: Bitcoin makes deliberate trade-offs, such as limited and expensive capacity, to offer core properties such as decentralization and immutability. Given its high settlement assurances, Bitcoin optimizes its limited capacity for settling transactions that aren’t well served by traditional rails.

Bitcoin is mobile, fungible and well divisible. The article provides a good example of using Bitcoin as a global inter-enterprise settlement and thus helps to do business in border areas. Also, Bitcoin is good in those countries where there is a struggle with high inflation and there are capital controls.

Criticism #3: Bitcoin is wasteful.

Response: A substantial portion of bitcoin mining is powered by renewable energy or energy that would otherwise be wasted. Additionally the energy the Bitcoin network does consume is a valid and important use of resources.

This article provides an example of using resources with limited utility, such as stranded gas, to mine bitcoin. Many enterprises, due to economic impracticality or impossibility of transportation, emit it into the atmosphere or burn it in flares.

Criticism #4: Bitcoin is used for illicit activity.

Response: Bitcoin, like cash or the internet, is neutral and has properties that may be valuable to good actors and bad actors. However, as a share of total transactions, Bitcoin transactions connected to illicit activity are very low.

But this point is very fond of manipulating all kinds of regulators and governments, prohibiting or restricting the use of Bitcoin. So why not prohibit or restrict fiat currencies with such an approach, because according to statistics, there are 800 laundered dollars in fiat for 1 dollar laundered in bitcoin. And illegal activity through bitcoin began to decline, because numerous analytical companies have appeared that analyze blockchain transactions and are able to link the bitcoin address with a real person.

Criticism #5: Bitcoin is not backed by anything.

Response: Bitcoin is not backed by cash flows, industrial utility, or decree. It is backed by code and the consensus that exists among its key stakeholders.

Probably the most popular criticism I've just heard from the adepts of traditional finance. Bitcoin is backed by key stakeholders, including miners, validators, nodes, developers. Interested parties choose Bitcoin because of its unique characteristics, such as scarcity, irreversibility of transactions, and resistance to hacking.

Criticism #6: Bitcoin will be replaced by a competitor.

Response: While Bitcoin’s open-source software may be forked, its community and network effects cannot. Bitcoin makes trade-offs for core properties that the market deems valuable.

Quite often you can hear all sorts of prophecies that Bitcoin is doomed and the so-called Bitcoin killer is already ready, which is more technologically advanced and faster than it, but no matter how many such killers appear, Bitcoin with all its shortcomings still remains the NUMBER 1 cryptocurrency.

While competitors have attempted to improve upon Bitcoin’s limitations (e.g., its limited transaction throughput or its volatility), it has been at the cost of the core properties that make Bitcoin valuable (e.g., perfect scarcity, decentralization, immutability).

Also, the author of the article gives a number of related articles on the basis of which the article was created. It will be useful to familiarize yourself with:

- Bitcoin vs. Gold: Is Bitcoin Really A New 'Safe Haven' Asset?
- May 2020 BVI Letter - Macro Outlook
- October Selloff Leaves Few Places to Hide
- Bitcoin Has Lost Steam. But Criminals Still Love It.
- An (Institutional) Investor’s Take on Cryptoassets
- Pros and Cons of Bitcoin for International Payments
- Blockchain company BitPesa wants to transform payments in Africa
- World Bank Predicts Sharpest Decline of Remittances in Recent History
- How is Bitcoin taxed?
- 3rd Global Cryptoasset Benchmarking Study
- BITCOIN MINING NETWORK: December 2019
- Bitcoin Mining Helps Oil Companies Reduce Carbon Footprint
- Bitcoin in the Wilderness
- U.S. oil fields flared and vented more natural gas again in 2019: data
- Bloomberg: Why Bitcoin Mining Is Being Touted as a Solution to Gas Flaring
- Energy Giant Equinor to Cut Gas Flaring With Bitcoin Mining: Report
- The Last Word on Bitcoin’s Energy Consumption
- Bitcoin Does Not Waste Energy
- Illicit bitcoin transactions remain below 1% of the total amount, says Elliptic
- Comparing Money Laundering With Cryptocurrencies and Fiat
- THE DOLLAR FAR OUTSTRIPS CRYPTOCURRENCY IN ILLICIT ACTIVITY USAGE
- Bitcoin a New Asset Class?
- "Bitcoin: Ringing The Bell For A New Asset Class"
- Why and when to hold gold bullion?

Bitcoin is volatile in nature and it's not a disadvantage.Being a trader,we should use it as a opportunity and buy bitcoin and good potential altcoin at the low price.Secondly we should hold it without losing hope on cryptocurrency.And we can sell at high price to get profit from it.

[witcher_sense]

Criticism #5: Bitcoin is not backed by anything.

Response: Bitcoin is not backed by cash flows, industrial utility, or decree. It is backed by code and the consensus that exists among its key stakeholders.

Probably the most popular criticism I've just heard from the adepts of traditional finance. Bitcoin is backed by key stakeholders, including miners, validators, nodes, developers. Interested parties choose Bitcoin because of its unique characteristics, such as scarcity, irreversibility of transactions, and resistance to hacking.

I'd like to add something to that. People, those who criticize bitcoin and claim it is not backed by anything, usually fail to recognize the difference between sound and unsound money. They think of bitcoin as an inferior alternative to fiat money; bitcoin, according to them, is worse than fiat money because governments refuse to support it and accept as a means of payment on their territories. Bitcoin is backed neither by governments, businesses, nor gold. The truth is bitcoin shouldn't necessarily be backed by something: it exists on its own like gold, which is also backed by "nothing".

Both gold and bitcoin, sound money, have proven the credibility of their monetary properties and, in effect, are backed by them. The former has existed for thousands of years and people are always ready to accept gold because they know it is valuable. The latter has existed for more than a decade, its monetary properties are set in stone, programmed; people all over the world are working hard to sustain these properties because they know bitcoin is also valuable.

[palle11]

4.Bitcoin is used for illicit activity.

This has been in the front of criticism of bitcoin by most people especially those in government which is one reason they give for not adopting bitcoin into their constitution a a means of payment just as fiat. This though has not stopped the use of bitcoin by large majority, the use of bitcoin has increased from it early stage.

[witcher_sense]

Yes, also in disputes, when there is a statement that bitcoin is not backed by anything, they like to cite as an argument that: bitcoin is not backed by anything, but fiat is backed by gold. It's an old misconception that central banks provide gold for their candy wrappers.

Especially such statements are inherent in the old generation.

Once they know that the gold standard has long been buried, that now fiat money is just pieces of paper or numbers on monitors, they start arguing that paper and numbers are backed by decree, invisible hand, nuclear weapons, roads, military forces, taxes, you name it. According to them, government-issued money is backed by almost everything, tangible and intangible.

Speaking of the gold standard, try to ask them why gold has been chosen as a reserve asset, how it emerged and developed on a free market, what it is backed by, etc... If they manage to answer all these questions, they will likely understand what bitcoin is backed by.

[Smartprofit]

Only CBDC can compete with Bitcoin.  However, CBDC is not a cryptocurrency or deflationary asset. 

A certain hope was in the cryptocurrencies of IT corporations - Libra and TON.  Their competitive advantage is their huge audience.  However, governments are very jealous of currencies like Libra and TON.  They hinder their development in every possible way. 

Bitcoin Cash tried to become the number one cryptocurrency, but suffered a crushing defeat. 

Monero is a highly toxic cryptocurrency. 

Ethereum is an experimental cryptocurrency, there is no certainty that these experiments will not lead to its death.

There is currently no alternative to Bitcoin.  I have doubts that such alternatives will appear in the future.

[gurjasmeetsingh]

It's fact ,when a project take the peak point of success. After the popularity in the market. Side by side criticism is also running with that project. Because the investors wants to  wast field of earnings day by day,due to popularity of the projects.so various type of rumors are also heard. I think there's no competitor of bitcoin yet. I think so.

[milani]

I think that all these points are from people that did not even try to understand what the Bitcoin is and what pros snd cons of it. Of course some statements about volatility for example have the true nature, at least partially, but in most cases rumours happen because people do not completely understand the details and nuances of the Bitcoin ot Blockchain. And very often they do not even try to learn in deep, they just write or say and that is all. The main reason - the lack of knowledge or the lack of desire to learn in deep.