There are many opponents of cryptocurrencies. Their opinion is also necessary to consider and analyze.
Actually, money laundring is easy to make it by Bitcoin. But financial criminals exsisted before bitcoin. And it would not be logical to ban bitcoin because it can be used bycriminal elements. There is no prohibition on the use of knives due to the fact that it can be use for murder.
In addition, in any criminal matters old cash is better – is the truly anonymous tool of payment. The first thing you need is to care about honest citizens convenience, and then is to catch criminals. And criminals will always find what to use. Advantages of bitcoin and benefit from its using for residents of many countries is more important.
Bitcoin has high volatility – the volatility of exchange rate in short time intervals.
But, doesn’t the dollar, euro or oil have it?. Over the last 50 years, oil prices jumped considerably. Will we prevent oil?
A sharp change in the bitcoin value concern only those who want to use it for savings storage or investments. If you will use it for the purposes for which it’s created you will not care about these jumps absolutely. If you want to exchange your currency to bitcoin and buy something, it doesn’t matter how much it will cost tomorrow.
Can we call Bitcoin a Ponzi scheme(pyramid)? So, there are important differences:
-there is no promises to participants that they will make a profit on the exchange rate,
-bank accounts, stocks or common currency countries have much more likeness with the Ponzi scheme than bitcoin does, but it don’t prevent them to be popular among thousands and millions of people.
Bitcoin is not the money, because it don’t have responsible for it release, and no one to ask.
Dollars, for example, are produced by the USA. Can you ask something from the States? Can someone deny them to use the printing press? NO.
When bank cards technology was being created many people also complained that the usual paper and coin money is understandable, but a card – is toy for “too advanced”.
In 2000, the vast majority of people couldn’t use the Internet and mobile phones. Today is the time of new technologies. Don’t be afraid to learn and to use it.
To steal Bitcoin is harder than information from a credit card, or wallet out of pocket. In any case, no one is immune from losses.
The latest version of bitcoin clients already contain crypto protection for wallet data, but the user must attache the crypto protection. So the protection is in your hands.
The weak point of the bitcoin technology is if someone gets hold of computing power more than half of the entire network capacity, he will be able to manage it.
By host increasing number it get more and more difficult to do. All honest generating hosts capacity is stronger then any of the world’s largest supercomputer.
If we assume the probability that an unknown malefactor will take the network under control, this will give him a little: he will not be able to withdraw funds from different bitcoin-wallets, because it’s necessary to know their secret keys.
Malefactor will be available only to cancel his own recent transactions, perhaps he will be able to introduce a fee for the transaction, deliberately causing blockchain branching.
That’s a very expensive attack and it isn’t worth the benefits, so there is no rational economic reason to do it.