Is Bitcoin The Future Crypto?
We know there are two types of currencies- one is government-controlled currency and another is a decentralized currency. Comparing these two currencies in the following points...
Supporting points:
1. Several authorities are adopting Bitcoin.
Expressing the future of blockchain technology. You should see what steps that several influential companies and even the government practice. Samsung launched its Samsung Blockchain Platform SDK & Keystore SDK.
Facebook announced its Libra. In 2019, Thales Data Threat Report, intelligence company IDC surveyed 1,200 executives in November 2018, out of which 100 were from U.S. Federal Government departments.
It found that 47% of government respondents are already using blockchain with another 40% planning to do so. Several conglomerates such as Tesla had already adopted Bitcoin as a means of transaction.
2. Its fixed supply makes it more trustable.
Smart people won't believe in their government. They know very well that the central authority can print as much currency to make it less valuable. More printed currency can flood the market, and it can cause hyperinflation, a situation where one will have to pay more money to purchase something.
In the history textbook, it is well written somewhere that hyperinflation in Zimbabwe caused a lot of trouble.
A single loaf of bread cost about a cart of money or two. About 35 trillion Zimbabwean Dollars was equal to 1 United States Dollar. Where there is more supply, the demand declines, leading to a loss in its value.
On the other hand, Bitcoin has a limited supply, as well as the amount of Bitcoin, created every 10 minutes is reduced by half every 4 years.
3. Blockchain is too difficult to be hacked.
Although there are several thefts regarding bitcoin, it is nearly impossible to hack the entire bitcoin network because of its complexity.
So far, nobody has free-handedly hacked a blockchain. Rather, it's normally a group of malicious players or the core dev team that cooperate to breach a blockchain's security.
However, as blockchain platforms get more powerful through an increase of nodes or stakes, the likelihood of hacking a decentralized network is frequently shifting towards zero.
In extension, brand-new blockchain systems use academically proven techniques that would require highly technoscientifically quantum machines to hack.
Opposing points:
1. The production of Bitcoin is costlier than fiat currency.
The process of discovering Bitcoin is known as Bitcoin Mining. The mining of bitcoin takes a colossal amount of power.
Mining a single bitcoin requires about 72 terawatts (72,000 gigawatts). The amount of power is equal to around 50,000 wind turbines.
As mining is indirectly a competitive business, due to the rise in its competition, the difficulty of mining a bitcoin is increasing. So, to increase the efficiency of bitcoin mining, one should prefer a high-end PC, certainly made for heavy gaming.
The general PCs we see nowadays will make a lot of trouble while mining, its electricity bill will far outweigh the price of a bitcoin. Professional miners use ASIC paired with high-end GPU (think of RTX).
A single Antminer S19 Pro generates about 0.00073 BTC per day when working with a mining pool. Which is equivalent to $13-$19 per day. For your information, bitcoin mining was relatively easier.
During 2008-2010, a simple desktop or even a smartphone could be used to mine bitcoin. After all, bitcoin mining is tough as well as expensive.
2. No central authorities will assist you when your bitcoin is stolen.
Due to the increase in scams and frauds, people are simply lacking trust in Bitcoin.
Moreover, people believe that fiat currency is more safer and secure because it has central authority to work on implementing rules that can prevent scams and frauds.
Indeed, it's still not illegal to steal bitcoin, but doing illegal ways to steal bitcoin is... Bitcoin transactions work with the help of Blockchain, which is simply decentralized.
Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.
A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Blockchain is purely technical based, it can be just renovated by developers. The conclusion is once the bitcoin is lost, you can't trace it.
3. Bitcoin has a high activity time, relatively higher than fiat currency.
4. We don't want to see the banking system goes absolutely worthless.
While Bitcoin plus other digital money have built meaningful interest, their adoption rates are tiny and administration provision for them is virtually imaginary.
Until and unless central authorities recognize Bitcoin as an official currency, it has little hope of destroying off central banks any time shortly. Central authorities may play a role in wiping out bitcoin to save the banking system for their economy.