The Pros and Cons of Cryptocurrencies; Bitcoin!
Bitcoin, the encrypted “miracle” of the 21st century, yet to be discovered and experienced by many, was created by the famous, but still unknown and unknown “Satoshi Nakamoto”. Bitcoin is a natural phenomenon that can no longer be ignored and it dates back to the year 2009, when it was traded for only USD 0.0001 on online platforms.
Bitcoin is therefore a virtual product that is not managed by a central government, a company or an organization, which means that the “power to the people” principle has once again taken shape. Bitcoin, as a Digital Currency, is managed and facilitated by Blockchain Technology. An advanced mathematical combination and/or ledger of analytical formulas or a natural “notary” that cannot be manipulated by the human factor. This fact states, among other things, that Blockchain Technology, which facilitates Cryptocurrencies such as Bitcoin, is completely independent, without any human action in terms of existence.
Despite its positive growth, especially in price and applications, it has also experienced major setbacks over time. Bitcoin owners or investors can best share that experience. The pleasant moments when the price rises exceptionally and therefore records large payouts in the well-known “e-Wallets” or "Bitcoin wallets", are in direct contrast to the drop in prices within the crypto market. Despite the unprecedented volatility of the price in general so far dependent on external factors within that market, the price development in both cases is in particular a reaction and reflection of the emotions and behavior that its traders show within the financial markets. Nevertheless, top figures from the international financial world and a recently published document commissioned by the European Parliament have indicated that cryptocurrencies such as Bitcoin do not pose a threat to financial and monetary stability worldwide, given that Bitcoin only accounts for 1% of the Gross Domestic Product (GDP). This indication shows that cryptocurrencies still have a long way to go and are only in their infancy.
The internet as we know it today has also had to develop since 1992 to the point where it is now and nowadays an internet connection is mainly necessary for companies and entrepreneurs, compared to a few years ago when it was only a choice and luxury. The banking sector has also had to go through a development and with the arrival of the internet they were also forced to review their services and business structures, because of a changing society that would move within the infrastructure of the www protocol, in order to better serve their clients. In short, “Great things take time to build”, but where to?
In my previous article "The Big Bang Theory of Bitcoin" I have tried to provide insights through my many years of experience and knowledge of cryptocurrency, where the “Genesis” of Bitcoin will take us, as its “Revelation” slowly but surely reaches larger parts of the world population.
This current article was partly inspired by someone who asked what the pros and cons of Bitcoin are and I thought I would share my insights with the general public, so that you too are not left in the dark. As I stated earlier, Bitcoin is still in its infancy and for that reason it is unreasonable to approach cryptocurrencies with pros and cons, since there are still ecosystems being developed around it, so that the product becomes more accessible and its services are usable and applicable to everyone. Of course, the whole intention of Bitcoin was to bring back the “power to the people” principle, with the understanding that no person is excluded, because of its borderless nature and character. In my opinion, cryptocurrencies are therefore, among other things, virtual products that greatly stimulate and initiate the globalization process. For the sake of convenience, instead of pros and cons, we will talk about 1) challenges, 2) obstacles and 3) goals achieved.
The challenges of cryptocurrencies in general and Bitcoin in particular are at the time of this article:
Global exposure for better recognition and acceptance.
Mainstream use to stimulate product development and increase support.
Consensus on the definition, so that globally everyone is looking in the same direction.
Increase the speed of transactions (still faster than SWIFT network for money transactions).
More stable value to promote sustainable growth and prosperity.
Safe and secure against hackers on the trillion dollar trading platforms.
Integration within the financial and monetary sector to accelerate the globalization process, among other things.
Less sensitive to external influences (banks, politics & social influences), so that the price experiences fewer large fluctuations.
Recognition by the global community, given that Bitcoin is borderless in nature and the phenomenon of price differences and the competition that comes with it can disappear.
The obstacles of cryptocurrencies in general and Bitcoin in particular are at the time of this article:
Some banks that are still pessimistic about this development, which makes integration, recognition and acceptance within local economies and sovereign countries still difficult.
Conservative view of a product with liberal characteristics, given that Bitcoin is future-oriented and innovative and any attempt to approach it with old thoughts maintains the status quo and does not promote change.
In some cases is seen as a pyramid scheme.
Owning and/or managing Bitcoin is generally not available to everyone due to the preconditions incorporated within the current financial system.
Lack of adequate internet connections in rural and remote areas.
Lack of advanced smartphones within some communities.
Lack of crucial legislation and regulations in many sovereign developing and developed countries. 8. The “mining” or development of cryptocurrencies in general involves very high costs, especially high electricity bills.
Technical and logistical details of cryptocurrencies and the "Blockchain Technology" are still quite complicated to understand for many, due to the few material applications, which makes the choice to trade and/or own slow to start, resulting in a difficult acceptance.
The realized goals of cryptocurrencies in general and Bitcoin in particular are at the time of this article:
Not subject to inflation based on a preset “market cap” that cannot be exceeded and cannot be adjusted by human factors.
Lightning fast regional and international transactions.
Theft of (personal) data is a thing of the past and information and processes are more transparent.
Financial resources that are only accessible and managed by the owner and/or investor, thanks to strict KYC conditions and a uniform data privacy policy (GDPR) implemented on May 25, 2018.
A data network that can be used in almost every sector and can solve current and burning issues.
Decentralized, which makes hacking difficult or even impossible.
Paradigm shift achieved on a financial and social level, in order to stimulate change.
Role of intermediaries broken and is still realized on a frequent basis, which significantly reduces (un)costs, for example when purchasing a house.
Bureaucracy and corruption significantly reduced within the community.
Of course, there are more points that can be made within each of the three (3) groups, but we have listed nine (9) to give you an indication, so that you can form a better picture for yourself of what exactly the virtual money is that almost everyone is talking about. You will notice that if the questions are asked differently, you can often get better answers to provide more insight and clarity. If we had simply listed pros and cons, things would also be presented very differently, which would give you a completely different feeling and possibly form a different picture.
Since we are placing things in a broader aspect for the benefit of sustainability and long-term vision, instead of giving it a dualistic character through pros and cons, it seemed useful and practical to approach it this way. Due to the programmable nature of cryptocurrencies in particular and the open nature of "Blockchain Technology" as a new development and as part of the 4th industrial revolution, we will have to approach this emerging innovative market constructively critically and agree on how we can deal with these challenges and convert the obstacles into opportunities. Only through consensus and an open mind can we look together at what the possible applications are for our beloved Suriname.
Source: De Ware Tijd (Hard copy) 10/07/18
Author: Anthony Roy Sporkslede | Founder & CEO Mercury Investments Consultancy NV
Bitcoin is therefore a virtual product that is not managed by a central government, a company or an organization, which means that the “power to the people” principle has once again taken shape. Bitcoin, as a Digital Currency, is managed and facilitated by Blockchain Technology. An advanced mathematical combination and/or ledger of analytical formulas or a natural “notary” that cannot be manipulated by the human factor. This fact states, among other things, that Blockchain Technology, which facilitates Cryptocurrencies such as Bitcoin, is completely independent, without any human action in terms of existence.
Despite its positive growth, especially in price and applications, it has also experienced major setbacks over time. Bitcoin owners or investors can best share that experience. The pleasant moments when the price rises exceptionally and therefore records large payouts in the well-known “e-Wallets” or "Bitcoin wallets", are in direct contrast to the drop in prices within the crypto market. Despite the unprecedented volatility of the price in general so far dependent on external factors within that market, the price development in both cases is in particular a reaction and reflection of the emotions and behavior that its traders show within the financial markets. Nevertheless, top figures from the international financial world and a recently published document commissioned by the European Parliament have indicated that cryptocurrencies such as Bitcoin do not pose a threat to financial and monetary stability worldwide, given that Bitcoin only accounts for 1% of the Gross Domestic Product (GDP). This indication shows that cryptocurrencies still have a long way to go and are only in their infancy.
The internet as we know it today has also had to develop since 1992 to the point where it is now and nowadays an internet connection is mainly necessary for companies and entrepreneurs, compared to a few years ago when it was only a choice and luxury. The banking sector has also had to go through a development and with the arrival of the internet they were also forced to review their services and business structures, because of a changing society that would move within the infrastructure of the www protocol, in order to better serve their clients. In short, “Great things take time to build”, but where to?
In my previous article "The Big Bang Theory of Bitcoin" I have tried to provide insights through my many years of experience and knowledge of cryptocurrency, where the “Genesis” of Bitcoin will take us, as its “Revelation” slowly but surely reaches larger parts of the world population.
This current article was partly inspired by someone who asked what the pros and cons of Bitcoin are and I thought I would share my insights with the general public, so that you too are not left in the dark. As I stated earlier, Bitcoin is still in its infancy and for that reason it is unreasonable to approach cryptocurrencies with pros and cons, since there are still ecosystems being developed around it, so that the product becomes more accessible and its services are usable and applicable to everyone. Of course, the whole intention of Bitcoin was to bring back the “power to the people” principle, with the understanding that no person is excluded, because of its borderless nature and character. In my opinion, cryptocurrencies are therefore, among other things, virtual products that greatly stimulate and initiate the globalization process. For the sake of convenience, instead of pros and cons, we will talk about 1) challenges, 2) obstacles and 3) goals achieved.
The challenges of cryptocurrencies in general and Bitcoin in particular are at the time of this article:
Global exposure for better recognition and acceptance.
Mainstream use to stimulate product development and increase support.
Consensus on the definition, so that globally everyone is looking in the same direction.
Increase the speed of transactions (still faster than SWIFT network for money transactions).
More stable value to promote sustainable growth and prosperity.
Safe and secure against hackers on the trillion dollar trading platforms.
Integration within the financial and monetary sector to accelerate the globalization process, among other things.
Less sensitive to external influences (banks, politics & social influences), so that the price experiences fewer large fluctuations.
Recognition by the global community, given that Bitcoin is borderless in nature and the phenomenon of price differences and the competition that comes with it can disappear.
The obstacles of cryptocurrencies in general and Bitcoin in particular are at the time of this article:
Some banks that are still pessimistic about this development, which makes integration, recognition and acceptance within local economies and sovereign countries still difficult.
Conservative view of a product with liberal characteristics, given that Bitcoin is future-oriented and innovative and any attempt to approach it with old thoughts maintains the status quo and does not promote change.
In some cases is seen as a pyramid scheme.
Owning and/or managing Bitcoin is generally not available to everyone due to the preconditions incorporated within the current financial system.
Lack of adequate internet connections in rural and remote areas.
Lack of advanced smartphones within some communities.
Lack of crucial legislation and regulations in many sovereign developing and developed countries. 8. The “mining” or development of cryptocurrencies in general involves very high costs, especially high electricity bills.
Technical and logistical details of cryptocurrencies and the "Blockchain Technology" are still quite complicated to understand for many, due to the few material applications, which makes the choice to trade and/or own slow to start, resulting in a difficult acceptance.
The realized goals of cryptocurrencies in general and Bitcoin in particular are at the time of this article:
Not subject to inflation based on a preset “market cap” that cannot be exceeded and cannot be adjusted by human factors.
Lightning fast regional and international transactions.
Theft of (personal) data is a thing of the past and information and processes are more transparent.
Financial resources that are only accessible and managed by the owner and/or investor, thanks to strict KYC conditions and a uniform data privacy policy (GDPR) implemented on May 25, 2018.
A data network that can be used in almost every sector and can solve current and burning issues.
Decentralized, which makes hacking difficult or even impossible.
Paradigm shift achieved on a financial and social level, in order to stimulate change.
Role of intermediaries broken and is still realized on a frequent basis, which significantly reduces (un)costs, for example when purchasing a house.
Bureaucracy and corruption significantly reduced within the community.
Of course, there are more points that can be made within each of the three (3) groups, but we have listed nine (9) to give you an indication, so that you can form a better picture for yourself of what exactly the virtual money is that almost everyone is talking about. You will notice that if the questions are asked differently, you can often get better answers to provide more insight and clarity. If we had simply listed pros and cons, things would also be presented very differently, which would give you a completely different feeling and possibly form a different picture.
Since we are placing things in a broader aspect for the benefit of sustainability and long-term vision, instead of giving it a dualistic character through pros and cons, it seemed useful and practical to approach it this way. Due to the programmable nature of cryptocurrencies in particular and the open nature of "Blockchain Technology" as a new development and as part of the 4th industrial revolution, we will have to approach this emerging innovative market constructively critically and agree on how we can deal with these challenges and convert the obstacles into opportunities. Only through consensus and an open mind can we look together at what the possible applications are for our beloved Suriname.
Source: De Ware Tijd (Hard copy) 10/07/18
Author: Anthony Roy Sporkslede | Founder & CEO Mercury Investments Consultancy NV
Updated on: 14/12/2024
Thank you!