The critics: Unstable, gloomy rat poison
Great minds from industry and business are constantly speaking out against Bitcoin and its intellectual children. For example, Nobel Prize winner Joseph Stiglitz repeatedly called for a ban on cryptocurrencies. In his opinion, Bitcoin was “unstable and bleak” and had no other purpose than to launder money.
Even star investor Warren Buffett does not fail to repeatedly emphasize his aversion to Bitcoin. Although Justin Sun, CEO of the crypto-project Tron, had met with him for dinner and then claimed to have given him a smartphone with the private keys to Bitcoin, Buffett negated having crypto-currencies. To him, Bitcoin still falls under the category of “rat poison.
The crypto community is also aware of the statement by U.S. President Donald Trump, who last July stressed that Bitcoin & Co. did not have the status of money for him.
Whether Trump, Buffet or Stiglitz: For the BTC critics, the crypto currency is pure speculation, without any value of its own and without a future.
Bitcoin as a revolutionary construct
On the other hand, there is the “Bitcoin will change the world” narrative. Finally, the crypto-currency represents a counter-draft to the existing monetary system. As a decentralized currency that is not subject to any central authority, the digital currency should not only provide a means of payment for all those who currently have access to the banking world. Rather, the “digital gold” is intended to oppose the latter in particular. With a maximum money supply of 21 million there is no unregulated printing of new money, the total quantity is fixed at a maximum of 21 million units.
This is followed – almost ironically – by the dreams of “big money”. Once global wealth, measured in US dollars, euros, Swiss francs & Co., is converted into Bitcoin, the hodlers of this world have the big fortune in their pockets with their 0.123 BTC. The often quoted aphorism behind this assumption:
“First they ignore you, then they laugh at you, then they fight you, then you win.”
And indeed, Bitcoin fights its way through the first three phases.
For this other extreme, Bitcoin is a promise of salvation: a new monetary system that redistributes the world’s wealth and creates a new world order.
The truth lies in between
The fact is that Bitcoin is still far from being out of “speculative object” status. Its advantage is also its disadvantage:
There is no central agency that regulates Bitcoin, but there is also no central authority regulating Bitcoin.
Repeated allegations of manipulation, constant fluctuations in the Bitcoin price coupled with irrational herd behavior of the community form a growing supply of critical feed.
On the other hand, it cannot be denied that certain crypto-currencies bring certain benefits that are slowly gaining acceptance in the community. The fact that crypto currencies, for example, find their way to supermarket checkouts via point-of-sales solutions is a clearly positive signal. Not only does it give them a use case, but also an actual use.
The status quo, as so often, lies somewhere in between.
For crypto fans, this still means not letting short-term price slumps unsettle them.