When you read about Bitcoin, you will likely find that it has many proponents and an almost equal number of detractors. That’s because the digital coins hit at the heart of a philosophical debate about personal autonomy and the role of large institutions in the lives of individuals. It’s a touchy one, and it often pits Bitcoin against large entities such as governments, banks, and other behemoths which don’t like how this new technology essentially takes the rug right out from underneath them. That is because Bitcoin utilizes a decentralized structure, meaning that there is nobody overseeing the usage of the coins in the digital sphere.
Bitcoin has been able to hold up against the pressure exerted by these large institutions because it has been able to capture the imagination of the public at large. As a matter of fact, many have found novel ways to invest in the coins, often using technology like crypto robots, such as Bitcoin Code, to invest in the technology, creating a kind of self-fulfilling circle. In order to decide whether or not Bitcoin is the right kind of investment for you, you must understand how it works, what it means that it is decentralized, and how that is both an asset and a hindrance to its future prospects.
1. Nobody Calling the Shots
When you buy something with a credit card, you have to wait for the transaction to be approved by the company. The same thing goes for when a bank is involved. But when you make a purchase or receive payment from someone using Bitcoin, none of that infrastructure is involved to slow things down. The transaction is verified and made unchangeable by a network of so-called “miners,” and the funds go through almost instantaneously and without any unnecessary fees tacked on by overseers. There are no overseers, after all.
2. The Positives
What it means when you use Bitcoin is that you are not beholden to these banks and credit card companies. As a result, you can do business with anyone whom you see fit, even if that person is located somewhere across the world from you. It can be a way for you to take control again of your own finances. Much as many people will hoard cash or gold to prevent any interference from a bank, they can do the same with Bitcoin, only with much more freedom in how you can use it.
3. The Negatives
Unfortunately, the very thing that gives Bitcoin its essence is the thing which frightens governments, banks and the like. And those traditional powers are not likely to enjoy their obsolescence at the hands of Bitcoin. As a result, many banks and credit card companies have cut down on their customers’ ability to deal with Bitcoin, while some governments have likened it to theft or money laundering and attempted to crack down on it.
Whether or not the actions of these large bodies scare you away from investing in Bitcoin will largely be based on your temperament. If you do believe in it, there are profits to be made from it.