What are some of the arguments against Bitcoin?
The degree of acceptance. It is hardly a medium of exchange, with people rarely using it for retail transactions. Although it has been around for almost 13 years, many people are still unaware of the use of Bitcoin, with the list of businesses globally accepting Bitcoin as a form of payment still being relatively small. Furthermore, the volatile nature of Bitcoin causes a degree of fear amongst both retail & institutional investors. Relatively small events, trades or business activities can significantly affect the price. Moreover, Bitcoin does present a disadvantage of risk of loss – that is, Bitcoins are effectively ‘gone’ if you are hacked, the wallet file is corrupted, or if a hard drive crashes or a virus corrupts records. There is limited regulation or governing body in charge of Bitcoin, meaning if there are any resulting hacks, crashes or viruses that cause an individual to lose Bitcoin, or further concerns or problems in relation to Bitcoin’s functionality, you will be unable to complain to anyone. Additionally with no serious regulation or backing, there is a lot of black market activity involved in Bitcoin, due to no ties at all to a government or central bank. As such, it has become a medium for all kinds of black market activities online, including the infamous Silk Road, the Amazon of illegal drugs, only allowing transactions with bitcoins.