Bitcoin Should I trust?
Before operating with large amounts, investing in Bitcoin. I would like to weigh all the pros and cons of cryptocurrency and, in particular, Bitcoin itself. But it so happened that after examining a large amount of information about Bitcoin and following the exchanges, it became obvious that cryptocurrencies do not have any advantages as such. Indeed, let's see what we are trying to feed on the official website of the main cryptocurrency today:
Well, it seems, and everything, all the main advantages are listed. And the time has come to show that on close examination, all these advantages are nothing more than a good advertising move, or just someone’s dreams (what bitcoin was supposed to be, but not what it is now, or will ever be). I will try not to go into technical subtleties, exactly like economic or psychological ones, but I will try to explain my point of view about bitcoin in today's realities in a simple and accessible language .
1) Simple Mobile Payments
Excellent quality. But nowadays this will not surprise anyone. I think you should not even focus on this, but as a confirmation you can cite the fact that with the help of the same NFC technology you can already pay for trips in the Moscow metro using a mobile. Not to mention the fact that for almost any advanced user, contactless payments using PayPass technology have long been a part of everyday routine. And here also Tinkoff Credit Systems Bank announced the launch of Tinkoff Mobile Wallet electronic payment system on December 1, which, obviously, is usability at times than something similar based on a little-known system. But everything that can be used in this way right now is connected with ordinary currency. What about bitcoin? No way! Have you seen at least one machine that accepts bitcoin as payments? How many of your friends are familiar with cryptocurrency firsthand and have already installed a bitcoin wallet on your phone? Yes, in the USA and a number of other countries there are already Bitcoin ATMs, etc., but these days this is the exception rather than the rule. So it turns out that simple mobile payments are what the system strives for, and not what it currently has. And to attribute to their advantages what the whole world has been using for a long time, and bitcoin only plans that it will be convenient to use them in this regard, at least not correctly.
2) Secure transactions
Are they safe? Let's not go into cryptography or discussion about the security of the code. Just try yourself to do any operation with Bitcoin. If you have just joined the system, then first you need to buy this bitcoin. And here it will become obvious that without third parties it is practically impossible! And who are these faces? That's right: exchanges, exchangers, e-wallets, banks, etc. If you buy bitcoin, then you pay money for it. Therefore, this transaction is not safer than any other transaction in the same payment system that you used to buy Bitcoin. Further worse, then, where you transferred your money, too, if we talk about purity, are not particularly distinguished by their security. It is enough to recall the fact that the main exchange Mt.Gox was hacked in due time. And this is far from the only unpleasant incident with Bitcoins ( BTC-e , bitfloor , bitomat , Linode , etc.) And after that, does anyone have the courage to talk about security? Yes, it is safer to send money with a dove than in this way. (I would like to note the current events with Mt.Cox, for those who are not in the subject, the stock exchange was hacked, and its management disappeared in an unknown direction, and someone's money was crying, namely, at the time of closing, approximately $ 422,592,000 ( One of the largest cryptocurrency exchanges Mt Gox stopped working ))
Well, let's say you are not new to this system and you do not need to buy or sell bitcoins for the usual "paper" currency. And how then do you plan to use them? Just preserve and store until better times? Until those times, when the rate still grows by 1000%, and maybe 10,000%, but will it grow? Well, let's say. And then what? You will still need to convert them into money or buy something directly on them. In the first case, you find yourself in a situation that is no different from that described above. Yes, and from where the exchanges or exchangers such money? All those who worked with bitcon know perfectly well that a) there are delays in payments and b) the exchanges do not have a solid stabilization fund . In the case of a sharp rise in Bitcoin, many will want to withdraw their money, and they will understand that there is no money. No, they, of course, are there, but not at the exchange.
That left the last option, buy for the Bitcoins themselves. Agree, now this, to put it mildly, is not the most convenient way. And whether it will be convenient in the future, no one knows for sure. And the main question is, will direct bitcoin-bitcoin transactions be still safe ?
')
3) Works anywhere, anytime
Does it work? Again, if you make transactions without resorting to third parties, then yes. But in modern conditions, as mentioned above, it is inconvenient and not a fact that it will be convenient in the future. And these intermediaries have a feature that sometimes does not work. Those. and there is no clear advantage over classical payment systems. And what is this generally for the slogan "works anywhere," try to pay for something with Bitcoin, where there is no Internet. How not to succeed? And they say that it works anywhere. Lie?
4) Fast international transfers
Well, how fast, I must say that it is not instant. Now, if you throw webmoney from a webmoney wallet, or from Yandex money to Yandex money, then this is a matter of seconds. And in the case of Bitcoin, you must wait for confirmations, usually from 2 to 6. And besides, some exchanges do not allow money to be withdrawn just like that, for example, BTC-e makes you wait at least 24 hours. Not to mention Mt.Gox and their, to put it mildly, not friendly authentication system. Think about it yourself, if everything were so simple, then the course on all the exchanges would be equal. And if the course would still be different, I immediately rushed to buy Bitcoins on BTC-e, transfer them to BTCChina and sell for 150-200 bucks for a cue ball more than I bought.
5) Almost free use
The keyword "almost." Of course, you can transfer it from your wallet to your wallet for free, but this is usually not very convenient, because it is not always possible to wait, and not paying a commission, you will have to wait. So, firstly, even with direct transfers from a bitcoin wallet to a bitcoin wallet, a fee of 0.0001 BTC is taken (well, or you can refuse the commission, thereby significantly increasing the transaction time), now this is not enough, about 2.5 rubles. But if you believe in the bright future of Bitcoin, the growth of the currency will lead, at least, to a relative increase in the commission. Imagine that bitcoin took off to the skies and costs 1 million rubles. Why? Many believe in it. Then, if you want to buy something for 0.001 BTC (1000 rubles), then the commission will be 100 rubles. Free use? I do not think. It should also be taken into account that after all the coins are mined, the miners' resources (after all, they ensure the operation of the entire system) are planned to be retained with the help of payments for processed transactions. And then the question arises, can they be kept at this level of commission? From the same site bitcoin.org
If you go back to the present, now it’s more concerned with the percentage that exchanges / exchangers charge. 0.2-0.6% commission for any transaction on the stock exchange and 3-7% for the transfer of money. And it becomes clear that free use is another fairy tale.
6) Pseudo-anonymous online payments
"Pseudo" and that says it all. All transactions are open. If you believe the article “ An Analysis of Anonymity in the Bitcoin System ” by Fergal Reed and Martin Harrigan, in most cases, identification problems do not arise. The same opinion is shared by the US authorities. And indeed, if you think logically, what would get what you bought for Bitcoins, upon receipt you will need to prove that you are the customer.
7) Decentralization
Yes! At the end of a pure truth! But only the positive side of this is not significant. Bitcoin can be managed (or rather already successfully managed)! And this is done much easier than we would like. First, it is worth noting, so to speak, the "ranks" of the exchanges. Until recently, Mt.Gox had the highest 1st rank, now this place of honor is occupied by the Chinese exchange BTCChina. What does it mean? Yes, that now everyone is not equal to the Mt.Gox course, but to the Bitcoin course on the BTCChina exchange. And as soon as there will be a serious growth (or plums) on the stock exchange of the first rank (BTCChina), there will immediately be a sharper growth (sink) on the stock exchange of the second rank (Mt.Gox), and, consequently, on all other stock exchanges. As confirmation, I will provide a link to course charts . From this it follows that it is enough to manage one highest-ranking exchange to manage the entire course of Bitcoin. Agree, this greatly simplifies the task.
But how to manage?
There are many ways. More than one might imagine. I will cite only three that everyone who has already heard about cryptocurrency has already encountered:
a) Information warfare
Familiar picture? Looks like a bitcoin course, isn’t it? But this is not a course, it is a schedule of requests for the word bitcoin in google trends . Here you can recall the words: “Bitcoin is not supported by anything, it costs exactly as much as you are willing to pay for it.” Just look at China, and its PR company around bitcoin, and it will become obvious that the way is working! The course there has grown by leaps and bounds. And you can also roll this course down and cover the PR company.
And, if you heard something about bitcoin, it means that this method has already been tried on you, perhaps even unconsciously.
b) Play on the stock exchange. Rush, panic, walls. The one who played bitcoin on the stock exchanges is well aware that as soon as the course gets a sharp bend in one direction on the main exchange (BTCChina), then the rest will result in a big candle that reflects either a stir (if the course went uphill) around Bitcoin, or panic (if there is a drain). Many of the players witnessed that a sharp drop in the rate on BTCChina by only 100 yuan ($ 16.5) caused a lightning-fast decline in the rate on other exchanges by $ 100-150. And if the course for the BTCChina, went back up the hill, then on the exchanges of a lower rank, the course returned to its former course. And all this in seconds. I do not know what others see in this. But for me it is obvious that there is no confidence in Bitcoin. And this can be easily manipulated. To make people sell BTC for nothing, and then persuade the same people to buy Bitcoin at an exorbitant price. And if you add to this wall, then it turns out quite usable tool. For those who have not played on the exchange:
c) Power. Always, when you get tired of playing on the stock exchange, you can prohibit Bitcoin. No, of course, you will not be forced to give it up. Just make sure that you do not need it. For example, covering all sites where Bitcoin is accepted / exchanged. And this is entirely within the power of each state.
Bottom line: Here, perhaps, that's all. All the advantages of bitcoin are far-fetched and have no reason behind them, which I tried to set out above. And if we add here such obvious disadvantages as the absence of any security with material resources (hash does not represent any real value), which leads to the risk of instant bankruptcy or how much electricity is spent on maintaining the network, which makes mining extremely environmentally unfriendly (and for a simple inhabitant also unprofitable). It becomes obvious that the experiment with cryptocurrency was a success, perhaps, from a psychological point of view. After all, the course continues to grow (does it continue?), Without having for that matter any reasons other than manipulative.
If I decided to save my money, I would prefer a conservative way. In this case, the likelihood that I wake up the next day is completely bankrupt, but with an electronic wallet with a bunch of beautiful, but useless, tsiferok, much less. And as time shows, for Bitcoin, a similar drop is normal. But that's where the guarantee is that there will be another increase after the fall?
Does it make sense to play on the bitcoin exchange and is it possible to make money on bitcoin? Perhaps ... Only play is worth such amounts that it is not a pity to lose.
- Simple Mobile Payments
- Secure transactions
- Works anywhere, anytime
- Fast international transfers
- Almost free use
- Pseudo-anonymous online payments
- decentralization
Well, it seems, and everything, all the main advantages are listed. And the time has come to show that on close examination, all these advantages are nothing more than a good advertising move, or just someone’s dreams (what bitcoin was supposed to be, but not what it is now, or will ever be). I will try not to go into technical subtleties, exactly like economic or psychological ones, but I will try to explain my point of view about bitcoin in today's realities in a simple and accessible language .
1) Simple Mobile Payments
Excellent quality. But nowadays this will not surprise anyone. I think you should not even focus on this, but as a confirmation you can cite the fact that with the help of the same NFC technology you can already pay for trips in the Moscow metro using a mobile. Not to mention the fact that for almost any advanced user, contactless payments using PayPass technology have long been a part of everyday routine. And here also Tinkoff Credit Systems Bank announced the launch of Tinkoff Mobile Wallet electronic payment system on December 1, which, obviously, is usability at times than something similar based on a little-known system. But everything that can be used in this way right now is connected with ordinary currency. What about bitcoin? No way! Have you seen at least one machine that accepts bitcoin as payments? How many of your friends are familiar with cryptocurrency firsthand and have already installed a bitcoin wallet on your phone? Yes, in the USA and a number of other countries there are already Bitcoin ATMs, etc., but these days this is the exception rather than the rule. So it turns out that simple mobile payments are what the system strives for, and not what it currently has. And to attribute to their advantages what the whole world has been using for a long time, and bitcoin only plans that it will be convenient to use them in this regard, at least not correctly.
2) Secure transactions
Are they safe? Let's not go into cryptography or discussion about the security of the code. Just try yourself to do any operation with Bitcoin. If you have just joined the system, then first you need to buy this bitcoin. And here it will become obvious that without third parties it is practically impossible! And who are these faces? That's right: exchanges, exchangers, e-wallets, banks, etc. If you buy bitcoin, then you pay money for it. Therefore, this transaction is not safer than any other transaction in the same payment system that you used to buy Bitcoin. Further worse, then, where you transferred your money, too, if we talk about purity, are not particularly distinguished by their security. It is enough to recall the fact that the main exchange Mt.Gox was hacked in due time. And this is far from the only unpleasant incident with Bitcoins ( BTC-e , bitfloor , bitomat , Linode , etc.) And after that, does anyone have the courage to talk about security? Yes, it is safer to send money with a dove than in this way. (I would like to note the current events with Mt.Cox, for those who are not in the subject, the stock exchange was hacked, and its management disappeared in an unknown direction, and someone's money was crying, namely, at the time of closing, approximately $ 422,592,000 ( One of the largest cryptocurrency exchanges Mt Gox stopped working ))
Well, let's say you are not new to this system and you do not need to buy or sell bitcoins for the usual "paper" currency. And how then do you plan to use them? Just preserve and store until better times? Until those times, when the rate still grows by 1000%, and maybe 10,000%, but will it grow? Well, let's say. And then what? You will still need to convert them into money or buy something directly on them. In the first case, you find yourself in a situation that is no different from that described above. Yes, and from where the exchanges or exchangers such money? All those who worked with bitcon know perfectly well that a) there are delays in payments and b) the exchanges do not have a solid stabilization fund . In the case of a sharp rise in Bitcoin, many will want to withdraw their money, and they will understand that there is no money. No, they, of course, are there, but not at the exchange.
That left the last option, buy for the Bitcoins themselves. Agree, now this, to put it mildly, is not the most convenient way. And whether it will be convenient in the future, no one knows for sure. And the main question is, will direct bitcoin-bitcoin transactions be still safe ?
')
3) Works anywhere, anytime
Does it work? Again, if you make transactions without resorting to third parties, then yes. But in modern conditions, as mentioned above, it is inconvenient and not a fact that it will be convenient in the future. And these intermediaries have a feature that sometimes does not work. Those. and there is no clear advantage over classical payment systems. And what is this generally for the slogan "works anywhere," try to pay for something with Bitcoin, where there is no Internet. How not to succeed? And they say that it works anywhere. Lie?
4) Fast international transfers
Well, how fast, I must say that it is not instant. Now, if you throw webmoney from a webmoney wallet, or from Yandex money to Yandex money, then this is a matter of seconds. And in the case of Bitcoin, you must wait for confirmations, usually from 2 to 6. And besides, some exchanges do not allow money to be withdrawn just like that, for example, BTC-e makes you wait at least 24 hours. Not to mention Mt.Gox and their, to put it mildly, not friendly authentication system. Think about it yourself, if everything were so simple, then the course on all the exchanges would be equal. And if the course would still be different, I immediately rushed to buy Bitcoins on BTC-e, transfer them to BTCChina and sell for 150-200 bucks for a cue ball more than I bought.
5) Almost free use
The keyword "almost." Of course, you can transfer it from your wallet to your wallet for free, but this is usually not very convenient, because it is not always possible to wait, and not paying a commission, you will have to wait. So, firstly, even with direct transfers from a bitcoin wallet to a bitcoin wallet, a fee of 0.0001 BTC is taken (well, or you can refuse the commission, thereby significantly increasing the transaction time), now this is not enough, about 2.5 rubles. But if you believe in the bright future of Bitcoin, the growth of the currency will lead, at least, to a relative increase in the commission. Imagine that bitcoin took off to the skies and costs 1 million rubles. Why? Many believe in it. Then, if you want to buy something for 0.001 BTC (1000 rubles), then the commission will be 100 rubles. Free use? I do not think. It should also be taken into account that after all the coins are mined, the miners' resources (after all, they ensure the operation of the entire system) are planned to be retained with the help of payments for processed transactions. And then the question arises, can they be kept at this level of commission? From the same site bitcoin.org
However, you can pay a small voluntary contribution in order to raise the priority of your transaction and reward people who support the Bitcoin system.Combine 4 and 5 points. Will it not be possible in the future (after working out all the blocks) so that without paying the commission you will wait for your transfer for quite a long time? Here you can read about the commission.
If you go back to the present, now it’s more concerned with the percentage that exchanges / exchangers charge. 0.2-0.6% commission for any transaction on the stock exchange and 3-7% for the transfer of money. And it becomes clear that free use is another fairy tale.
6) Pseudo-anonymous online payments
"Pseudo" and that says it all. All transactions are open. If you believe the article “ An Analysis of Anonymity in the Bitcoin System ” by Fergal Reed and Martin Harrigan, in most cases, identification problems do not arise. The same opinion is shared by the US authorities. And indeed, if you think logically, what would get what you bought for Bitcoins, upon receipt you will need to prove that you are the customer.
7) Decentralization
Yes! At the end of a pure truth! But only the positive side of this is not significant. Bitcoin can be managed (or rather already successfully managed)! And this is done much easier than we would like. First, it is worth noting, so to speak, the "ranks" of the exchanges. Until recently, Mt.Gox had the highest 1st rank, now this place of honor is occupied by the Chinese exchange BTCChina. What does it mean? Yes, that now everyone is not equal to the Mt.Gox course, but to the Bitcoin course on the BTCChina exchange. And as soon as there will be a serious growth (or plums) on the stock exchange of the first rank (BTCChina), there will immediately be a sharper growth (sink) on the stock exchange of the second rank (Mt.Gox), and, consequently, on all other stock exchanges. As confirmation, I will provide a link to course charts . From this it follows that it is enough to manage one highest-ranking exchange to manage the entire course of Bitcoin. Agree, this greatly simplifies the task.
But how to manage?
There are many ways. More than one might imagine. I will cite only three that everyone who has already heard about cryptocurrency has already encountered:
a) Information warfare
Familiar picture? Looks like a bitcoin course, isn’t it? But this is not a course, it is a schedule of requests for the word bitcoin in google trends . Here you can recall the words: “Bitcoin is not supported by anything, it costs exactly as much as you are willing to pay for it.” Just look at China, and its PR company around bitcoin, and it will become obvious that the way is working! The course there has grown by leaps and bounds. And you can also roll this course down and cover the PR company.
And, if you heard something about bitcoin, it means that this method has already been tried on you, perhaps even unconsciously.
b) Play on the stock exchange. Rush, panic, walls. The one who played bitcoin on the stock exchanges is well aware that as soon as the course gets a sharp bend in one direction on the main exchange (BTCChina), then the rest will result in a big candle that reflects either a stir (if the course went uphill) around Bitcoin, or panic (if there is a drain). Many of the players witnessed that a sharp drop in the rate on BTCChina by only 100 yuan ($ 16.5) caused a lightning-fast decline in the rate on other exchanges by $ 100-150. And if the course for the BTCChina, went back up the hill, then on the exchanges of a lower rank, the course returned to its former course. And all this in seconds. I do not know what others see in this. But for me it is obvious that there is no confidence in Bitcoin. And this can be easily manipulated. To make people sell BTC for nothing, and then persuade the same people to buy Bitcoin at an exorbitant price. And if you add to this wall, then it turns out quite usable tool. For those who have not played on the exchange:
The walls, this is when they open an order for a very large amount, as a result of which this order hampers the development of the course. I will illustrate with this example: When the course on BTCChina rose from 5520 to 5820 yuan, the course on Mt.Gox and on BTC-e froze around $ 850-855 and $ 740-745, respectively, and did not change, although usually at such a moment goes confident growth. Because on these courses walls were put up for the purchase and sale, respectively. At BTC-e in the amount of 1000 BTC. Those. sold 1000 BTC for 745, and bought 1000 BTC for $ 740. As a result, in order for growth to be necessary, it was necessary to buy up this 1000 BTC for 745, and for recession - to break through the wall to 740 marks. These walls kept the course in the right frame for someone for more than an hour (until the warrant was removed).
And if you say that for serious companies such walls are not serious, and they are not peculiar to panic, then I may agree with you. But, as I wrote above, the course is very dependent on the demand of ordinary citizens. And if the games go only between corporations, then the masses will lose interest in Bitcoin. Agree, you do not really want to play the game, when the rules are constantly rewritten.c) Power. Always, when you get tired of playing on the stock exchange, you can prohibit Bitcoin. No, of course, you will not be forced to give it up. Just make sure that you do not need it. For example, covering all sites where Bitcoin is accepted / exchanged. And this is entirely within the power of each state.
Bottom line: Here, perhaps, that's all. All the advantages of bitcoin are far-fetched and have no reason behind them, which I tried to set out above. And if we add here such obvious disadvantages as the absence of any security with material resources (hash does not represent any real value), which leads to the risk of instant bankruptcy or how much electricity is spent on maintaining the network, which makes mining extremely environmentally unfriendly (and for a simple inhabitant also unprofitable). It becomes obvious that the experiment with cryptocurrency was a success, perhaps, from a psychological point of view. After all, the course continues to grow (does it continue?), Without having for that matter any reasons other than manipulative.
If I decided to save my money, I would prefer a conservative way. In this case, the likelihood that I wake up the next day is completely bankrupt, but with an electronic wallet with a bunch of beautiful, but useless, tsiferok, much less. And as time shows, for Bitcoin, a similar drop is normal. But that's where the guarantee is that there will be another increase after the fall?
Does it make sense to play on the bitcoin exchange and is it possible to make money on bitcoin? Perhaps ... Only play is worth such amounts that it is not a pity to lose.
Source: https://habr.com/ru/post/203518/
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