#virtual_currency

Is Bitcoin a fraud?

Cryptocurrencies are not fraud. Another thing is that criminals and speculators are taking advantage, that it is a real and realistic alternative to money right now or that it is viable in the long term. You are asking yourself the wrong questions.

That criminals have taken advantage of Bitcoin, for putting a cryptocurrency (right now there are 8,000 indexed currencies), to launder money or that the hitting culture is treating (and has treated cryptocurrencies in the last nine years) as if they were stock market peas. it means that the model is a fraud. In other words: the fact that there has been fraud taking advantage of the model does not mean that the model is fraudulent. Money is also laundered in dollars and in euros, and the dollar and the euro, as far as we know, are not a fraud. And, in the same way, although cryptocurrencies have been treated as a financial product, they are not an investment product per se either.. Not to mention that cryptocurrencies, as an investment, are tremendously volatile: today, a Bitcoin is worth 47,964 euros; 24 hours ago, 48,133 euros and on February 28 it was at 38,707 euros, but on February 23 it had reached 44,724 euros. And if you think of cryptocurrencies as an investment, it might have made sense to have invested in Bitcoin in 2009, like brothers Cameron and Tyler Winklevoss (the guys who denounced Mark Zuckerberg for 'stealing' their Facebook idea), and not now, when the chicharro This term on the Stock Market, which is used to refer to small, low-quality companies that sometimes have big rises, usually thanks to speculation, is already too mature. The problem, as always, are the questions we ask ourselves. You wonder if Bitcoin is a fraud, and you should be asking yourself other questions. Is there a real advantage right now to using cryptocurrencies instead of money? Is speculation with cryptocurrencies discrediting a model that could be interesting as a complementary economic transaction model? Does the technology behind cryptocurrencies have value? Were cryptocurrencies ready for public exposure so soon?  

Why is cryptocurrencies still defended as a fraud? "I think it is necessary to make it clear that cryptocurrencies are not a fraud in themselves, in any case it is people who commit fraud, either with cryptocurrencies or with legal tender. However, since it is an exclusively technological product and Currently highly speculative, and which aims to operate outside the established legal frameworks, it can be seen by those who commit criminal behavior as a perfect means to earn money without being detected by the authorities. Likewise, the lack of knowledge or information can also encourage its users to be victims of scams or simply their bad decisions ", explains Benja Andamientos, professor of Financial and Tax Law at the UOC and an expert in cryptocurrencies.

"On the other hand, I also believe that, given the threat posed by cryptocurrencies to central banks, one way to discredit their use and buy time so that legal tender digital currencies can be put into circulation is precisely to encourage this discourse from the estates precisely to induce the general belief that cryptocurrencies are a fraud and stop their widespread use. I am convinced that, once the digital currencies of central banks have been put into circulation, technology companies and companies will be allowed to financial companies do the same under strict regulation and control of the former, "continues AnGLES.

Cryptocurrencies are not a pyramid scam either. "On the one hand, there are people who invest in something without understanding it just because the value rises. On the other, the project of a decentralized global payment platform. When it is said that if it is a pyramid scam: absolutely not. A pyramid scam occurs when You promise a fixed return on the annual investment and you give that return with what the new investors put in. Nobody here offers a monthly return. Here what is there is that if this gets big, if it ends up working and ends up being used, You can pay in all places, people will need to buy Bitcoin. As there is a limited number there is a situation of supply and demand. If the supply is limited and the demand grows, the price has to rise. That is what people who believe in Bitcoin believe it has to come to pass. There are no dividends. You only earn money if you end up using a lot. If it is not used, it will have no value ", explains Víctor García Font, professor of Computer Science and Multimedia Studies at the UOC, and an expert in blockchain and cryptocurrencies.

"It is true that there are certain criminal activities that have seen the potential of cryptocurrencies to use them to their advantage. Anyway, if we look in which currencies the main criminal activities are committed, it is not in cryptocurrencies, but in dollars and euros. Most of the drug trafficking is done in dollars. And most of the money put in these environments is not for criminal activities. Most of it is for trading, which in my opinion does not benefit cryptocurrencies, but at least brings liquidity Works of art were also used to traffic drugs ... and to conclude that art only serves to traffic drugs would not be correct, "he adds.

One of the requirements for a currency to be created (and to last over time) is that it has the agreement of all. Is this the main problem so that, apart from the speculative bubble, cryptocurrencies become a real alternative to traditional money? "Certainly, the use of a cryptocurrency or any other means of payment requires the agreement of the parties involved in an economic transaction, so that, until all market operators accept its use, it will be very difficult for them to convert. in an alternative to the legal tender currencies. If in addition, the regulator is not by the work so that this is possible, because more difficult if not impossible it will be that they obtain it ", points Angles.

"However, the main problem for them to become an alternative to traditional money is the refusal of countries and their central banks to lose one of their main elements of sovereignty: the creation of currency and control of the monetary system. Cryptocurrencies are a real threat against the current 'status quo' of central banks and other organizations and financial institutions that regulate and control the global market for legal tender and, indirectly, the financial system, "continues AnGLES. "In this regard, some central banks have already started to move and we will soon see legal tender digital currencies in circulation. China has announced the 'digital yuan' for next year,

Bitcoin: A limited number of operations per second

"You really have to take cryptocurrencies as if they were start-ups that are just starting. Bitcoin is a payment network. If I go down to the corner store, I see that I cannot pay with bitcoins. In fact, Bitcoin has technical problems that make that is not yet scalable. It works because it has few users. If we all had to pay right now as we pay with a traditional credit card, it would not work. It would not work because it accepts a limited number of operations per second. Work is being done to scale this , but it has not been solved yet. It will take a while. Bitcoin is working as a kind of digital gold, where you do not need to make many transactions, but large and few transactions are made. We will see if it consolidates. It is a very volatile investment and with a lot of risk ",warns García Font.

So is it a problem of timing? Have cryptocurrencies gained 'notoriety' before they were mature? "That popularity should have come when it would have been more mature ... probably ... is one of the risks of getting involved in all this. If someone has only gotten involved because the price goes up a lot and does not understand what is behind all this, if the Price goes down, they don't care anymore. If someone gets involved because they believe in decentralized technology and that this can solve problems, the fact that it can go down for a while shouldn't be a problem. If you take cryptocurrency as a start-up: If the idea is to have a global payment platform, until you have it, the start-up has not concluded ", replies García Font.

Can it really be used now? Is there movement to be interested in using it or is it too early? "It depends on what you want it for. If you are an entrepreneur and want to set up a new business model, this will help you. Decentralization opens up business opportunities. If you are a mere user and you like decentralization. If you spend your money on bitcoin there are very few stores that accept cryptocurrencies. There is no yes or no. If you have a new business model, well yes, you may need to buy Ether in order to use Ethereum. Or if you are an immigrant and need to transfer money to your country of origin, the same is more costly to use a cryptocurrency than to make a bank transfer, "he concludes.

Have you all enjoyed the Q/A Bitcoin Post!! Friends, your suggestions are always welcomed. Feel free and drop the message and also comment on the comment section, don’t hesitate to Contact us

Have a good day! See you all soon.

It may interest you

Is Bitcoin a fraud?

Cryptocurrencies are not fraud. Another thing is that criminals and speculators are taking advantage, that it is a real and realistic alternative to money right now or that it is viable in the long term. You are asking yourself the wrong questions.

That criminals have taken advantage of Bitcoin, for putting a cryptocurrency (right now there are 8,000 indexed currencies), to launder money or that the hitting culture is treating (and has treated cryptocurrencies in the last nine years) as if they were stock market peas. it means that the model is a fraud. In other words: the fact that there has been fraud taking advantage of the model does not mean that the model is fraudulent. Money is also laundered in dollars and in euros, and the dollar and the euro, as far as we know, are not a fraud. And, in the same way, although cryptocurrencies have been treated as a financial product, they are not an investment product per se either.. Not to mention that cryptocurrencies, as an investment, are tremendously volatile: today, a Bitcoin is worth 47,964 euros; 24 hours ago, 48,133 euros and on February 28 it was at 38,707 euros, but on February 23 it had reached 44,724 euros. And if you think of cryptocurrencies as an investment, it might have made sense to have invested in Bitcoin in 2009, like brothers Cameron and Tyler Winklevoss (the guys who denounced Mark Zuckerberg for 'stealing' their Facebook idea), and not now, when the chicharro This term on the Stock Market, which is used to refer to small, low-quality companies that sometimes have big rises, usually thanks to speculation, is already too mature. The problem, as always, are the questions we ask ourselves. You wonder if Bitcoin is a fraud, and you should be asking yourself other questions. Is there a real advantage right now to using cryptocurrencies instead of money? Is speculation with cryptocurrencies discrediting a model that could be interesting as a complementary economic transaction model? Does the technology behind cryptocurrencies have value? Were cryptocurrencies ready for public exposure so soon?  

Why is cryptocurrencies still defended as a fraud? "I think it is necessary to make it clear that cryptocurrencies are not a fraud in themselves, in any case it is people who commit fraud, either with cryptocurrencies or with legal tender. However, since it is an exclusively technological product and Currently highly speculative, and which aims to operate outside the established legal frameworks, it can be seen by those who commit criminal behavior as a perfect means to earn money without being detected by the authorities. Likewise, the lack of knowledge or information can also encourage its users to be victims of scams or simply their bad decisions ", explains Benja Andamientos, professor of Financial and Tax Law at the UOC and an expert in cryptocurrencies.

"On the other hand, I also believe that, given the threat posed by cryptocurrencies to central banks, one way to discredit their use and buy time so that legal tender digital currencies can be put into circulation is precisely to encourage this discourse from the estates precisely to induce the general belief that cryptocurrencies are a fraud and stop their widespread use. I am convinced that, once the digital currencies of central banks have been put into circulation, technology companies and companies will be allowed to financial companies do the same under strict regulation and control of the former, "continues AnGLES.

Cryptocurrencies are not a pyramid scam either. "On the one hand, there are people who invest in something without understanding it just because the value rises. On the other, the project of a decentralized global payment platform. When it is said that if it is a pyramid scam: absolutely not. A pyramid scam occurs when You promise a fixed return on the annual investment and you give that return with what the new investors put in. Nobody here offers a monthly return. Here what is there is that if this gets big, if it ends up working and ends up being used, You can pay in all places, people will need to buy Bitcoin. As there is a limited number there is a situation of supply and demand. If the supply is limited and the demand grows, the price has to rise. That is what people who believe in Bitcoin believe it has to come to pass. There are no dividends. You only earn money if you end up using a lot. If it is not used, it will have no value ", explains Víctor García Font, professor of Computer Science and Multimedia Studies at the UOC, and an expert in blockchain and cryptocurrencies.

"It is true that there are certain criminal activities that have seen the potential of cryptocurrencies to use them to their advantage. Anyway, if we look in which currencies the main criminal activities are committed, it is not in cryptocurrencies, but in dollars and euros. Most of the drug trafficking is done in dollars. And most of the money put in these environments is not for criminal activities. Most of it is for trading, which in my opinion does not benefit cryptocurrencies, but at least brings liquidity Works of art were also used to traffic drugs ... and to conclude that art only serves to traffic drugs would not be correct, "he adds.

One of the requirements for a currency to be created (and to last over time) is that it has the agreement of all. Is this the main problem so that, apart from the speculative bubble, cryptocurrencies become a real alternative to traditional money? "Certainly, the use of a cryptocurrency or any other means of payment requires the agreement of the parties involved in an economic transaction, so that, until all market operators accept its use, it will be very difficult for them to convert. in an alternative to the legal tender currencies. If in addition, the regulator is not by the work so that this is possible, because more difficult if not impossible it will be that they obtain it ", points Angles.

"However, the main problem for them to become an alternative to traditional money is the refusal of countries and their central banks to lose one of their main elements of sovereignty: the creation of currency and control of the monetary system. Cryptocurrencies are a real threat against the current 'status quo' of central banks and other organizations and financial institutions that regulate and control the global market for legal tender and, indirectly, the financial system, "continues AnGLES. "In this regard, some central banks have already started to move and we will soon see legal tender digital currencies in circulation. China has announced the 'digital yuan' for next year,

Bitcoin: A limited number of operations per second

"You really have to take cryptocurrencies as if they were start-ups that are just starting. Bitcoin is a payment network. If I go down to the corner store, I see that I cannot pay with bitcoins. In fact, Bitcoin has technical problems that make that is not yet scalable. It works because it has few users. If we all had to pay right now as we pay with a traditional credit card, it would not work. It would not work because it accepts a limited number of operations per second. Work is being done to scale this , but it has not been solved yet. It will take a while. Bitcoin is working as a kind of digital gold, where you do not need to make many transactions, but large and few transactions are made. We will see if it consolidates. It is a very volatile investment and with a lot of risk ",warns García Font.

So is it a problem of timing? Have cryptocurrencies gained 'notoriety' before they were mature? "That popularity should have come when it would have been more mature ... probably ... is one of the risks of getting involved in all this. If someone has only gotten involved because the price goes up a lot and does not understand what is behind all this, if the Price goes down, they don't care anymore. If someone gets involved because they believe in decentralized technology and that this can solve problems, the fact that it can go down for a while shouldn't be a problem. If you take cryptocurrency as a start-up: If the idea is to have a global payment platform, until you have it, the start-up has not concluded ", replies García Font.

Can it really be used now? Is there movement to be interested in using it or is it too early? "It depends on what you want it for. If you are an entrepreneur and want to set up a new business model, this will help you. Decentralization opens up business opportunities. If you are a mere user and you like decentralization. If you spend your money on bitcoin there are very few stores that accept cryptocurrencies. There is no yes or no. If you have a new business model, well yes, you may need to buy Ether in order to use Ethereum. Or if you are an immigrant and need to transfer money to your country of origin, the same is more costly to use a cryptocurrency than to make a bank transfer, "he concludes.

Have you all enjoyed the Q/A Bitcoin Post!! Friends, your suggestions are always welcomed. Feel free and drop the message and also comment on the comment section, don’t hesitate to Contact us

Have a good day! See you all soon.

It may interest you

What is Bitcoin? What is the cost of Bitcoin?

Hey you. If you are hearing the name of Bitcoin then you are at the right place to know it properly that what is a Bitcoin? Just to be clear that read this whole article properly and you will definitely understand what bitcoins is?

Now you will ask whether it is a currency like a rupee or a dollar?

After all, Bitcoin is a thing that we cannot see it or feel it or touch it. Bitcoin is a thing that you can find it on the Internet only.

So here we are explaining about Bitcoin.

After all, "Bitcoin is a virtual currency", you can not see it or feel it. It is only stored just on the Internet. If you have to do it's transaction i.e. Buy and Sell, then you have to do it on the Internet itself.

As well as, the Government's currency is monitored by the Government. Still, there is no government control over it because it is an open-source, so there is no transaction record of it, that who sent it and who buy it.

Who created it? & initial value?

When "Satoshi Nakamoto" created Bitcoin in 2008. This Bitcoin had a value of less than 1 Indian Rupee. In fact, Today value of 1 Bitcoin is $ 18,958.90 that is approximately Indian Rs 13,93,548.86

After all, i hope this would have given you an idea of its value and how much demand can be expected below. As well as, By seeing its Growth Graph Screenshot, you can guess a little. In fact, in India from 2017 to till now its value has keep increasing.

Buying and Selling

Of course, you can earn precise money by selling and buying Bitcoin. Example if you had buy it before 3 months ago than its price was around 10 lacks and after 3 months mean today its value is more than a 13 lacks. Of course, like that you will get amazing benefit and earn money from Mutual Funds or Share Market.

Know the complete way to earn money from Facebook (Full Guide)

Here we are showing you a Indian currency, 1 Indian Rupee = 100 paise, then in the same way 1 BTC Currency = 100,000,000 Satoshi.

How to make money with bitcoin?

There are many ways available to earn Bicoin but there are a lot of Method that i Point out below so that you can earn money easily.

You can earn money from Bitcoin Mining.

By selling goods online, you can earn money by taking payment in BTC.

BTC can earn money by buying and selling, and in my view, it is the best way to earn in Bitcoin.

Bitcoin Related Q / A

Here are the few Questions and Answer related Bitcoin and if you have any question related it you can ask us in a comment we will definitely reply you.

What is the reason for increasing BTC value?

In fact, you already know that the price of it is in really in demand and it is keep increasing. Also, in future it will keep going on so the reason of increasing BTC is Money.

Can Bitcoin Cost Work? and will it decrease it price?

I do not think that its price will be decreased because the world is going digital, so the chances of a Decrease in Digital Currency are very low.

What is Satoshi?

Satoshi is the smallest amount of Bitcoin as there is 100 paise in 1 Indian Rupee. Similarly, there are 100 Million Satoshi in 1 BTC.

Where can you use Bitcoin?

You can sell BTC and can also use it in online payment or shopping.

Can people from every country use Bitcoin?

Of course, you can but the point is that you need Internet on your Country to access it.

How does Bitcoin Buy and Sell in India?

You have to Buy and Sell in India via Websites and Apps. Also i'm going to do an article post in deep detail about it so you can buy it or sell it easily with our help.

Conclusion: What is Bitcoin?

This is a kind of cryptocurrency that you cannot touch and cannot see, it is only stored on the Internet.

So if you want to buy and sell it, then you have to do it on the Internet itself, it cannot be physical.

The government does not have any control. As of January 2020 the value of 1 Bitcoin was $ 9.545.00 / Rs 7,03,991.00 and nowadays its $ 18,958.90 that is approximately Indian Rs 13,93,548.86. Of course, you can guess how much value of 1 BTC in USD and INR.

Read More

7 Useful Ways to Earn Money From Home for Housewives(Opens in a new browser tab)

Bluehost Affiliate Program - Everything you need to know(Opens in a new browser tab)