Bitcoin has its fair share of critics, but the vast majority either don't understand it or have an incentive to be critical.

Keep that in mind when you are reading the latest bitcoin and cryptocurrency headlines.

While it is true that there are likely far too many coins currently with over inflated market caps compared to the value that they can ultimately offer, Bitcoin could be argued is still way undervalued...

Bitcoin could very well become the currency of the internet.

If it doesn't, it still serves as an immutable store of value that isn't controlled by central banks or governments.

There is serious value in that.

Just ask people who live in Venezuela, or Iran. Heck, even Japan is facing fears of a rapidly devaluing currency.

In the traditional currency model, savers get punished.

Inflation is considered "normal, and good" according to Central Banks.

Ask that to mom and pop that have been putting money out of their pay checks into their savings accounts year after year...

They would have been better off just spending that money, from strictly a value gained perspective, however, that doesn't work if you eventually want to retire.

If you aren't exactly sure what I am talking about, check this out:

(Source: https://wingedliberty.com/currency-hyperinflated/)

Back to the topic at hand...

After reading headline after headline I have noticed that some of the harshest critics don't even understand what bitcoin is.

They talk about high fees, they talk about slow transaction times, and they talk about bitcoins being used to finance terrorism.

However, just about every single one of these criticisms can be fixed.

Fees are being lowered, transaction times are being sped up, and exchanges are getting better and better at sniffing out money laundering and fraud.

After all, bitcoin is basically software and software can be updated/upgraded.

Whatever bitcoin doesn't do currently, it likely will at some point.

Oh and btw, the US dollar has been the biggest financier of terrorism the world has ever seen, I guess we should get rid of it right?!

They also say bitcoin uses far too much electricity...

Well guess what, there are over 3.5 million ATMs in the world being used by our current financial system, and they consume more electricity than the entire bitcoin network.

Put that in your pipe and smoke it.

Does that mean we should abandon the current financial system because it uses too much electricity? I can't say I ever heard anyone say that, ever.

Not only that but most of the electricity usage by bitcoin miners is taking place in areas where there are surpluses of electricity.

Places like Iceland and Canada, and right next to major solar power and hydroelectric plants are the major bitcoin mining hubs.

I'm not sure about you, but why did it ever become considered a good thing when your money loses 2%-4% of its value every single year?!

(Source: https://www.ccn.com/beware-jamie-dimon-and-warren-buffett-double-down-as-bitcoin-critics/)

Conclusions:

Take everything with a grain of salt.

The next time you hear or read some critic talking about why bitcoin won't work, make sure he actually understands what he is talking about. Also, consider where he is coming from...

It's hard to take anything a banker says seriously when it comes to Bitcoin.

That would be like asking horse drawn carriage owners to comment on the first automobiles.

They have every reason to hope it doesn't succeed...

Stay informed my friends.

Image Source:

https://www.bloomberg.com/features/bitcoin-bulls-bears/

Follow me: @jrcornel