Society and politics often find it difficult to innovate. What cannot be sensed right away is often rejected or even classified as dangerous. At least until everyone has made the effort to weigh the advantages and disadvantages against each other. The new internet currency Bitcoin is currently struggling to defend itself against all sorts of prejudices. The talk is of theft, forgery and – how could it be otherwise – tax evasion, which should be cleared the way with Bitcoin, it is said.
Consumers are still cautious about dealing with money on the Internet concerns. With Bitcoin it is like in normal life: If you take care of your money, it will not be lost or stolen. The own Bitcoin amounts are proven by forgery-proof keys. Just generating these keys takes up an enormous amount of computing power. These keys are saved on your own computer. From this moment on, the user of this computer is solely responsible for the security of his Bitcoins.
Then there was talk of a “collapse” of the Bitcoin currency. First of all, it should be noted that there will only be a limited amount of Bitcoins in the long term. But if in any way you are still not keen on the crypto world, or do not quite understand, we recommend that you read this article https://bitcoindata.org/the-world-of-crypto/ .The number of bitcoins is mathematically determined and not tied to material resources as an equivalent. Accordingly, Bitcoins cannot be increased at will, which effectively protects the electronic currency from inflation.So if the system enjoys a rapidly growing popularity overnight, the available means of payment will logically become scarce.
Incidentally, other currencies are no exception, as history teaches us. Also, the availability of a currency cannot be determined solely by the amount of money, but must also take into account its speed of circulation. Because a lot of money that doesn’t move is of no use to anyone.
Bitcoin, like other currencies, is subject to certain economic mechanisms that cannot be removed by magic. However, this should not be used to measure whether the respective currency is good or bad. Despite the supposed setbacks, Bitcoin is still on the rise, because trust in the currency is high. This can also be seen in the still high trading volume of Bitcoin and the price level on the stock exchanges, which has been stable for some time. Really useful innovations will prevail after all.