What are the biggest arguments against Bitcoin?

by James · October 18, 2022

Bitcoin is now about 13 years old, but many arguments against it still exist. Learn about the biggest arguments against Bitcoin below.

Bitcoin attracts negative feelings and criticism from some quarters. Most of these criticisms are due to Bitcoin’s essential characteristics as a cryptocurrency, while others arise from sheer misunderstanding or lack thereof about Bitcoin. This article looks at some of the biggest arguments against Bitcoin.

Before we identify the arguments against Bitcoin, it is important to emphasize that Bitcoin is real and popular. Millions of people and institutional users use Bitcoin today for various reasons, including as an investment asset. Since Bitcoin is a valuable digital asset, many investors are now into crypto trading. You can learn about Bitcoin trading and even become a trader through trading platforms like bicode

Table of Contents

Bitcoin is a bubble

Among the biggest arguments against Bitcoin is that it is a bubble. Those who hold this view consider Bitcoin a bubble that will burst at any moment, like the dot.com bubble. The argument arises from the volatility of Bitcoin. Bitcoin has high price volatility which makes it very unpredictable and risky as an investment. However, this argument can be refuted.

Although Bitcoin is highly volatile, it is not a bubble because its price is unlikely to fall to zero. If Bitcoin’s price dropped to zero and made it worthless, many people would run away from it, leading to its eventual demise. However, this is almost impossible, considering that the Bitcoin price has never gone to zero.

Also, Bitcoin is not a bubble because a very elaborate technology known as blockchain supports it. Blockchain technology is a decentralized and globally distributed digital ledger that ensures greater security, privacy and convenient transactions. The technology guarantees the security of Bitcoin. No intermediaries such as banks can interfere in the system.

Bitcoin encourages criminal activities

Another common argument against Bitcoin is that it encourages criminal activities such as drug trafficking. Those who support this argument note that criminals and criminal networks have used Bitcoin to hide their tracks from law enforcement. While true, this does not mean that Bitcoin encourages such illegal activities.

Bitcoin provides users with anonymity, privacy and security. Some entities with criminal goals may exploit this to use Bitcoin instead of the traditional financial system to avoid being caught. But this was never the goal of Bitcoin. Bitcoin came as an alternative to conventional centralized systems with problems in the form of interference from those in control.

Bitcoin came to disrupt financial systems

Some critics also claim that Bitcoin was going to disrupt the existing financial system and structure. Governments have primarily held this argument and have tried to do away with Bitcoin and other cryptocurrencies. The primary basis of the idea is that Bitcoin is a decentralized system that removes centralized control from governments. They also claim that Bitcoin eliminates intermediaries such as banks and brokers in financial transactions.

It is true that Bitcoin, just like all other cryptocurrencies, challenges the traditional centralized financial system. But it would be unfair to claim that Bitcoin came to disrupt the centralized system because even today the centralized financial system involving central banks, commercial banks and other intermediaries exists side by side.

While Bitcoin’s popularity will continue to grow, those who claim it threatens the existing centralized system do so because they are part of that system. Governments will try to argue this way because Bitcoin eliminates the role of central banks. Commercial banks and financial institutions will say so because Bitcoin eliminates their function. Therefore, they do not profit by charging high fees to customers.