People who have never used bitcoin talk about it like they know it inside out.
But, why such suspicion? Because, they have nothing better to do with their lives.
Some look at it with crazy suspicion because they have heard funky things from their uncles, who have heard them from their friends, who have heard the, from their friends, who heard from the local trash radio or from a fictitious news channel.
Nothing concrete ever. Or, at worse, people think of this in terms of the little knowledge that they have and when they ca not make sense of it based on that little knowledge reserve on the subject they make up things and their brains, they refuse to believe that it is their knowledge resource that is inadequate, not the concept.
Sour grapes and tiny brains lead to the misconceptions on the matters of cryptocurrency, especially the first and the most original one so far – Bitcoin.
This is just like the skepticism of gold bugs, who, for decades, have argued that money must be backed by something real, tangible, and independently valuable. (which not even gold is in absence of its demand and presitge in ornaments.)
But, if this were necessary for stability then cryptos would not qualify, right?
Let’s take you back to the start. Satoshi Nakamoto’s white paper was released October 31, 2008. The components and concepts of this paper clarified that: This currency is for computer technicians, future lovers and not for finance or banking or economics majors. The paper’s circulation was limited; enthusiasts who read it were intrigued.
The Genesis Block – the first group of bitcoins emerged soon after the paper emerged. (in about two months)
This was based entirely on Nakamoto’s concept of a distributed ledger that came alive on any computer node in the world that wanted to be able to keep it alive.
Today the breakthrough technology underlying it and the currency is accepted by many thousands of institutions, both online and offline. It is a payment system is popular in economies with poor infrastructure and without vast banking infrastructures. The banking system seems like a necessity but it is sometimes missing in underdeveloped countries.
Even in the most developed countries not all people are Bankable. The payment network gives hope for those unbankable too.
Bitcoins are not backed up by something hard and tangible. This is where most of the confusion and suspicion starts. People feel like it needs to be backed up by gold, money or something else. But, its complicated use value adds all the complex layers of value to it. The idea that a bitcoin is secured by layers and layers of security, proof of work, hash functions and what not make it a valuable mechanism.
So inherently, what adds value to a bitcoin on an exchange is its usability, tradeability and the desire of others to do so, therefore from people and the society it operates in.
It’s website says:
As with all currency, bitcoin’s value comes only and directly from people willing to accept them as payment.
How beautifully and sufficiently put? Simple and precise. We love it!