There is no shortage of cryptocurrency enthusiasts in different corners of the world. However, it is very particular that cryptocurrencies are an incredible technology that will live for the future. However, if you talk about a particular cryptocurrency, it has the chances of success Singh and feeling. Visit reliable crypto exchange apps like weedprofitsystemapp.com to choose the best Bitcoin platform that suits your needs. It does not formulate the whole cryptocurrency space. You might have seen that many people confuse bitcoin and cryptocurrencies and use both of them as synonyms, but that is an entirely wrong method. If you address bitcoin, it means only one cryptocurrency, and it has the slightest chance of being a failure in future. Why so? Well, there is no shortage of reasons for the same.
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No real value
Every cryptocurrency enthusiast will argue that bitcoin has value as it is available in the market and people purchase it, but that is entirely wrong. In the case of peer currencies, there is a real value, which is the government’s guarantee of issuing it. For example, if you see the Indian rupee, you will find a government sign that promises the bearer to get the value for this money. It also applies to the United States dollar. Probably, in the case of bitcoin, you are not going to get any such assurance.
It is a coin available on the internet, and no one country is the origin of these cryptocurrencies. Also, talking about the stock market the company is providing them will give you the value. Suppose that a company has to pay you the value of the stock. Even if it does not have any fiat money, it can sell the stocks and provide you with them. However, cryptocurrency cannot do so. Bitcoin does not have any physical basis, and therefore, it lacks real value in the market.
The lack of stability with cryptocurrencies like bitcoin can be a terrible thing and lead to its downfall. When it comes to fiat currencies, the central bank is the authority that performs market operations at the international level and stabilises the currencies. Without stability, there are no chances for a currency to perform well and work as a medium of exchange. In the case of cryptocurrencies like bitcoin, it has a value, and it fluctuates because people are willing to purchase them. Do you ever use bitcoins as a medium of purchasing something? No, we will never do so because you purchase bitcoin as a store of value and not for purchasing anything. You will not purchase anything with bitcoin because of fear of missing out. You believe that it will increase its prices and therefore, it is a thing to preserve. Any vendor will not accept bitcoin as payment because they will also fear its decreasing value in the future.
Competing national currencies
Many bitcoin supporters say it will replace the Fiat currency like the United States dollar, but that is entirely impossible. How can you even imagine a volatile coin to replace the national currencies backed by government bonds and stocks? The United States of America, China are looking forward to placing a ban on cryptocurrencies. Suppose these banks decide to accept bitcoin as a payment medium and cancel their fiat currencies altogether. The chances of it working are low. Any nation will not accept bitcoin as a payment medium because they cannot control its value or regulate it. Therefore, it is ultimately an unrealistic scenario.
Bitcoin investment doesn’t signify Blockchain investment!
You need to understand an essential thing: the concept of bitcoin. The bitcoin transactions take place with the help of Blockchain technology which is the ultimate reason people are crazy about it. However, other cryptocurrencies exist, like stable coins that support the United States dollar as a base commodity. Whenever there are fluctuations in the stable coins, it will be as much as the fluctuation in United States dollars. Therefore, they have a degree of stability. Hence, no one will invest in bitcoin as it is not signified as an investment in blockchain technology because there are other options available.