Bitcoin Controversy: Why is it still questioned?

In the wave of digital currency, Bitcoin, as the first and most famous cryptocurrency, has attracted the attention of countless investors and users. However, with the development of the market and the evolution of technology, the doubts surrounding Bitcoin have become increasingly strong. Many people can't help but ask: Why is Bitcoin questioned? In this article, we will analyze this phenomenon from multiple angles and explore the reasons behind it.

First of all, the essence of Bitcoin is a decentralized digital currency. It was originally designed to break away from the constraints of the traditional financial system and provide a more free and anonymous way of trading. However, this decentralized feature also brings a series of problems. For example, due to the lack of supervision by a central agency, the price of Bitcoin fluctuates greatly, and the investment risk increases accordingly. According to statistics, in the past few years, the price of Bitcoin has fluctuated violently in a short period of time, even rising or falling by more than 20% in a day. This instability makes many investors feel uneasy and question the value of Bitcoin as "digital gold".

In addition, the security of Bitcoin is also a topic of great concern. Although Bitcoin's blockchain technology is considered to be relatively safe, hacker attacks and exchange thefts occur frequently, which still cause huge losses to users. For example, in 2014, the famous Bitcoin exchange Mt. Gox was hacked, resulting in the theft of about 850,000 Bitcoins, and the stolen funds have not been fully traced to this day. This has caused many people to doubt the security of Bitcoin and question whether it can really become a reliable value storage tool.

Furthermore, the environmental impact of Bitcoin has increasingly become the focus of public discussion. The mining process of Bitcoin consumes huge amounts of electricity, resulting in a significant increase in carbon emissions. According to research, the electricity consumption required for Bitcoin mining worldwide is close to the total electricity consumption of some small countries. This has raised questions about whether Bitcoin meets the Sustainable Development Goals, especially in the context of increasingly serious global climate change. Many environmental organizations and scholars have called for the regulation of Bitcoin mining to reduce its negative impact on the environment.

At the same time, the legal status and compliance issues of Bitcoin are also worrying. Governments have different attitudes towards Bitcoin. Some countries support it and even legalize it, while others choose to ban it completely. For example, China completely banned Bitcoin mining and trading in 2021 on the grounds of maintaining financial stability and protecting the environment. This policy uncertainty makes the future development of Bitcoin full of variables, further deepening the public's doubts.

Of course, in addition to the above problems, Bitcoin's technology itself also has certain limitations. Bitcoin's transaction speed is relatively slow, processing only seven transactions per second on average, compared with traditional payment systems such as Visa, which can process thousands of transactions. This limits the application of Bitcoin in daily consumption, and many merchants still take a wait-and-see attitude towards it, questioning its effectiveness as a means of payment.

Against this background, many people have begun to turn to other cryptocurrencies to find more potential investment opportunities. For example, Ethereum has been favored for its smart contract function and has become the most popular digital currency besides Bitcoin. Unlike Bitcoin, Ethereum is not just a digital currency, it is also a decentralized application platform that allows developers to build various applications on its basis. This flexibility has won Ethereum a high degree of recognition in the market, further intensifying the competitive pressure on Bitcoin.

At the psychological level of investors, many people's doubts about Bitcoin also stem from concerns about its future. The total supply of Bitcoin is limited to 21 million, which means that over time, the difficulty of mining will continue to increase and the income of miners will gradually decrease. As the scarcity of Bitcoin increases, many investors begin to question whether it can continue to attract new capital inflows and thus keep its price rising.

However, despite many doubts, Bitcoin still has its supporters and loyal users. Many people believe that as the pioneer of digital assets, Bitcoin's historical status and brand effect are unmatched by other cryptocurrencies. The decentralized nature of Bitcoin makes it uncontrolled by any government or institution, which to some extent enhances its appeal as a value storage tool. In addition, more and more companies and institutions have begun to include Bitcoin in their asset allocation, such as Tesla, MicroStrategy, etc., which has also increased Bitcoin's market recognition to a certain extent.

In the long run, whether Bitcoin can overcome these doubts depends on whether it can adapt to the changing market environment and technological progress. With the continuous development of blockchain technology, many emerging solutions have gradually emerged to improve the transaction speed and security of Bitcoin. For example, the Lightning Network, as a second-layer solution, aims to solve the delay and fee problems of Bitcoin transactions and provide users with a faster and cheaper transaction experience.

In short, the doubts about Bitcoin do not mean its failure, but reflect the market's attention and expectations for its future development. As an emerging digital asset, Bitcoin faces many challenges at the technical, legal and social levels. However, it is these challenges that drive Bitcoin to continue to evolve and seek innovative solutions. Regardless of the future, Bitcoin will play an important role in the global financial system and deserves our continued attention and in-depth thinking.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Many people question Bitcoin. Why is Bitcoin questioned? Blockchain is the hottest topic and field nowadays. While attracting technology pioneers, it has also become a topic of conversation for everyone. As for Bitcoin, which is the representative of blockchain, there are always some people who do not understand Bitcoin and slander and criticize Bitcoin. Let us analyze this issue from three chapters.

Mindset

Mindset 1
: These grapes must be sour. People who have no money and energy to invest in Bitcoin find that, wow, it has risen so fiercely, I must find a reason to convince myself to deny Bitcoin. People who failed to get on the bus thought, wow, it has risen so many times, it will become a bubble one day. The mentality of saying that grapes are sour because they can't eat them is the most common. They don't want to admit their miss, so they comfort themselves in this way.

Mindset 2
: Instinctively resist new things. Bitcoin is a new thing, I don't understand it. People's instinctive reaction to things they don't understand is to reject and deny, and avoid possible dangers to themselves. The more subversive the technology, the greater the criticism. Before bicycles were widely used, if you were given a drawing of a bicycle, would you doubt that such a structure could maintain balance?

Mentality 3
: A mixed mentality. Investment losses are not willing to cut losses. Just deliberately want to discredit it. Don't know what Bitcoin is, it has nothing to do with me, it's unreliable, spray it. There is no specific reason, just join in the fun.

Tulip speculation

The Dutch tulip speculation is a famous example of speculation in history. When tulips first entered the Netherlands, they were just ornamental flowers for the aristocracy. Later, tulips gradually became a symbol of social status. The unique characteristics of tulips made it an object of speculation. The price of tulips increased day by day, and people flocked to buy tulips. The price of the most expensive tulips was even equivalent to a house in the city at that time. When someone realized that such speculation could not create value, a large number of people sold tulips, and the tulip bubble should have burst.

Characteristics of tulip speculation: tulips have no practical value, tulip speculation is a small-scale phenomenon, and tulip production can be unlimited.

Then let's take a look at whether Bitcoin has such characteristics?

As the first product of blockchain, Bitcoin can obviously be used for convenient cross-border payments. The circulation of digital currency is not limited by national boundaries and does not need to go through any intermediary institutions, making value transfer extremely convenient.

Bitcoin is not circulated in a small range. Bitcoin has become popular all over the world.

The total amount of Bitcoin is not unlimited. Bitcoin does not have a centralized issuer, but is generated by the calculation of network nodes. Anyone can participate in the production of Bitcoin. But Bitcoin is not issued in unlimited quantities. Its issuance is controlled by software algorithms. The total amount is constant at 21 million. As more and more coins are mined, the reward will be halved.

It can be seen that the characteristics of Bitcoin are completely different from tulip speculation.

Locusts in the currency circle

Some locusts in the currency circle illegally use Bitcoin to launder money or use Bitcoin to make money through pyramid schemes, causing people's prejudice and misunderstanding of Bitcoin.

First, due to some characteristics of Bitcoin, it is used by some lawbreakers as a good helper for money laundering and bribery. Some black money in China can be exchanged by buying Bitcoin and then going abroad. Unlike any country's currency, every transfer is regulated. Bitcoin is not issued by any country, nor is it regulated. It is impossible to trace its source and has become a tool for criminals to launder money.

Second, some scammers use the emerging concept of blockchain to register shell companies without any blockchain technology support and create fake websites to fool the public. Under the banner of virtual currency, they collect membership fees by constantly attracting members. MLM coins themselves have no value and are not supported by real projects. Therefore, once the project operator absconds with the money, no matter how many times the glorious history of the MLM coin has increased, the value of the MLM coin can only collapse in an instant and return to zero. People's hard-earned money is like a moth to a flame, and it sinks into the sea.

Bitcoin's underlying technology blockchain does face some technical challenges. First, the theoretical maximum value of the Bitcoin network information throughput is only 7
tps. Second, a longer delay time is required to ensure security during Bitcoin transactions. Third, there is a possibility of 51%. Finally, there are energy consumption and privacy issues. But these cannot affect the accelerated implementation of blockchain technology.

We should not slander or attack Bitcoin or blockchain technology out of jealousy, resistance or because of the smears of some lawless elements. It still has huge potential application value that can improve our lives waiting for us to explore.