Bitcoins and Cryptocurrency: Scam, Bubble or Currency of the Future‪?‬

Introduction

Knowing More about Cryptocurrency and Bitcoins

I have been talking about bitcoins and cryptocurrency with a number of my friends out there, because they seem to be very fascinated with this latest money exchange idea, especially as it is being publicized on the Internet extensively as the latest thing in digital currency and which is now being considered as a global money transaction phenomenon.

The word “global” is a misleader and a misnomer. Around 90% of the people out there do not know about cryptocurrency, digital currency and digital cash because they couldn’t be bothered to learn about it. As long as they have currency in the shape of paper money and coins in their wallets with which to buy physical goods, why would they want to bother about any currency, which is in digital form, can be changed into local currency, and transferred into your bank account?

Being practical, they also do not want to invest in anything, which like shares and debentures in a very volatile stock market have a price which fluctuates from $0.30 to $7,500 per bitcoin. There is absolutely no justification for this sort of fluctuation for a currency which appeared on the Internet, and has no legal standing anywhere in the world, acknowledged by monetary agencies and governments.

This digital currency has been around for the past eight years, but it was only now that more and more people want to know whether it was a sensible idea to invest in cryptocurrency or bitcoins, because everybody was doing that.

I told them that if they really wanted to invest in something and they had plenty of money floating around, why wouldn’t they want to buy gold and property. At least they had some visible proof that they had invested in a tangible asset. Also, take shares and debentures and as was the latest investment thing going around in the early 2000’s, penny shares, all of these are a gamble.

But at least you know that the share market can go up because it has a solid background of economic and financial strength behind it. But what about a bitcoin which has only a digital background and absolutely no recognized monetary standing anywhere in the world except over the net? 18 million bitcoins have been mined by unknown cryptographers all over the world till date and are not acceptable legal currency of any country, known in the world today.