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Collin Harness


The bear case for Bitcoin

Is it just a passing fad? Or is this coin here to stay?

    1. Takes a while for transactions to settle. There are faster methods.

    On the Bitcoin network, the average confirmation time for a BTC payment is about 10 minutes. However, transaction times can vary wildly. This is because it is affected by factors such as the total network activity, hashrate and transaction fees.

    2. No intrinsic value

    The coin is not backed by anything. Neither is the US Dollar, except the word of the US Federal Government.

    3. The value is purely based on demand

    Commodities like wheat, oil and even companies have a supply chain provides a valuable product/service. Bitcoin is a digital store of value that could lose popularity and you would lose the money you put into it.

    4. Not really being used as currency

    Because there is a limited supply that is being mined, people are hoarding Bitcoin as a store of value like gold. People are not actually buying products/services with Bitcoin yet.

    5. There is no government regulation

    This is an advantage/disadvantage depending how you look at it.

    6. Transactions are irreversible.

    Once you hit the button it is done. In order to 'reverse' you would have to do a new transaction.

    7. Price volatility

    8. Risk of losing your wallet 'key'

    People are horrible at remembering or writing down passwords. Someone could easily lose their wallet key and not be able to access their funds.

    9. Liquidity risk

    The supply of Bitcoin is limited so doing a trade at a busy time may not be as easy as getting dollars from your bank.

    10. Scams

    This happens with fiat money also, but is becoming more pronounced online with people trying to scam others out of their Bitcoin.

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