SHA

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/140vddq/daily_general_discussion_june_5_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/140vddq/daily_general_discussion_june_5_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13zueea/daily_general_discussion_june_4_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13zueea/daily_general_discussion_june_4_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13yu6g4/daily_general_discussion_june_3_2023_gmt0/).

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13yu6g4/daily_general_discussion_june_3_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13xxjcr/daily_general_discussion_june_2_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13xxjcr/daily_general_discussion_june_2_2023_gmt0/).

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13xcjrl/monthly_optimists_discussion_june_2023/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

Wise-Application-144

It's a bleak argument to make, but if SHA-256 falls then yeah, you can kiss goodbye to legacy banking too, as well as infrastructure from the electricity network control to air traffic control to military comms. And anything that's just password protected will be long gone. An SHA-256 hack is basically apocalyptic. Frankly if that happens, then Bitcoin will be the least of your worries.

SecularAdventure

So to address your concern, if a quantum computer can crack SHA-256, it would affect much more than Bitcoin. A lot of financial cryptography is less sophisticated or about as sophisticated as SHA-256. Anything with cryptography, especially account username/passwords, would be vulnerable to a quantum computing attack. Lots of things would break, there would be a lot of chaos, and Bitcoin would just be one target among many.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

igadjeed

You can't make a public key from a private key without a tool which has elliptic curve cryptography functions You can't make an address from a public key without a tool which has SHA2-256 functions There are instructions for manual SHA2 calculations. Don't waste your time. Use software. Use third party software You don't need a wallet Toss a coin 256 times, write '0' for heads, '1' for tails. Combine the '0' and '1' characters into groups of 4 and convert to hexadecimal 0000 0 0001 1 0010 2 0011 3 0100 4 0101 5 0110 6 0111 7 1000 8 1001 9 1010 A 1011 B 1100 C 1101 D 1110 E 1111 F That's your private key, in hexadecimal format. For the rest, use the available tools Download bitcoin-tool from https://github.com/matja/bitcoin-tool Compile it and follow the instructions

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13w6eup/daily_general_discussion_may_31_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13w6eup/daily_general_discussion_may_31_2023_gmt0/).

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13w6eup/daily_general_discussion_may_31_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

Aussiehash

I haven't looked at the Coldcard source code or build scripts, but it maybe that their SHA256 hash doesn't take into account the signatures baked into official firmware. To give some history, when TrezorOne first shipped it was released as open source software, however the bootloader code was not released initially, as a deterrent to unsophisticated copy cat clones. Essentially that they would need to write their own bootloader from scratch to clone Trezor. This bootloader was written to the STM chip and write protected such that it could never be modified, and contained 4 public keys, which were used to verify that an official Trezot firmware was signed by their private keys. I've documented some of this in [my Keepkey deep dive](https://medium.com/@AussieHash/keepkey-under-the-hood-3beac31e1064). Ledger's own BTChip was the first to produce and flash custom firmware to Trezor which dumped the entire STM including firmware and Bootloader (his Bitcointalk post proof of RE (Reverse Engineering) was a link to the public keys from the original Bootloader). Subsequently a STM bug was discovered that allowed anybody to replace the protected Bootloader code, this did allow Trezor to themselves update the TrezorOne bootloader for an improved one, including this who prordered Trezors for 1BTC to 3BTC each. The Trezor bootloader always checked the Trezor firmware hash, and the Trezor firmware always checked the bootloader's hash. Now Trezor's firmware signing tool could be used to sign official firmware, and also used to verify the signatures of official firmware releases. To do that it needed Trezor's public signing keys, and it also calculated an official firmware MD5 hash that excluded the signature part. It is impossible to build byte-for-byte identical firmware as official firmware because we don't have Trezor's private signing keys, so the sign&verify tool calculates the identical MD5 by excluding the official firmware signatures. This maybe what's going on with Coldcard official vs self made firmware, I don't know. Also it would be good to check if Coldcard's firmware does a hash check of the bootloader, as we don't known if Coldcars Mk1 / 2 / 3 / 4 have the same STM vulnerability that allows the Bootloader to be replaced.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13vapl8/daily_general_discussion_may_30_2023_gmt0/).

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13vapl8/daily_general_discussion_may_30_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13vapl8/daily_general_discussion_may_30_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

pseudonym-2112

The original plan was that you would mine to get some initial crypto. This way no government could stop you, *and* you'd be helping the network. But mining is pointless for most cryptos without a big investment, because SHA-256 (along with most other mining algos) is so prone to ASICs. However there is a crypto that can *only* be usefully mined on regular CPUs like in your PC or laptop or even phone. And that crypto is totally untraceable, nobody will know you have it or how much you have. Good luck.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13vapl8/daily_general_discussion_may_30_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13uf7rz/daily_general_discussion_may_29_2023_gmt0/).

CointestMod

#Bitcoin Con-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > However, despite its popularity and growing acceptance as a legitimate form of payment, there are several criticisms of Bitcoin that have been raised over the years. > > # Unclear Source of Value > > * Stocks derive their value from the underlying worth of a company and its assets. Gold derives its value from its physical utility as a commodity. Even fiat currencies derive their value from the strength of the country's economy and their widespread utility within their respective countries. > * Yes, Bitcoin has scarcity and utility, but does this justify its hefty market capitalization? [Brookings](https://www.brookings.edu\/opinions/the-brutal-truth-about-bitcoin/) states that Bitcoin investors seem, in fact, to be "relying on the greater fool theory—all you need to profit from an investment is to find someone willing to buy the asset at an even higher price." > * Unlike fiat currencies, which are issued and backed by central banks, Bitcoin is not backed by any physical commodities or corporate assets. This lack of backing means that the value of Bitcoin is entirely dependent on the mechanism of supply and demand, which has been proven time and time again to be highly volatile. > * Some argue that this lack of intrinsic value makes Bitcoin a risky investment, as there is nothing to fall back on if market demand was to suddenly disappear. > * Essentially, the price of Bitcoin is the price you pay to use its technology - making it seem similar to fiat currencies until you realize that most people [speculate](https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading) or invest in Bitcoin rather than using it for its intended purpose. (source: [https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/](https://time.com/nextadvisor/investing/cryptocurrency/should-you-use-crypto-like-cash/)) > * Without its utility being utilized, then, Bitcoin's value is significantly diminished. > > # Deepseated Stigma > > Despite its potential to revolutionize the financial industry, Bitcoin has faced significant resistance from mainstream institutions and individuals due to a variety of factors. > > * One of the main reasons for the stigma surrounding Bitcoin is its association with illegal activities. In its early days, it was often used on the dark web for the [purchase of illegal goods and services](https://academic.oup.com/rfs/article-abstract/32/5/1798/5427781?redirectedFrom=fulltext), leading to its portrayal as a tool for criminal activity. This association has persisted, with some people still viewing bitcoin as a way to facilitate illegal transactions. This is not an unfounded assumption; cryptocurrency-based crime hit a record $14 billion in 2021 [according to the WSJ.](https://www.wsj.com/articles/cryptocurrency-based-crime-hit-a-record-14-billion-in-2021-11641500073) > * Unlike traditional currencies, concerns have been raised about its volatility, with the value of Bitcoin frequently fluctuating. While this volatility can be seen as a potential advantage for traders looking to make quick profits, it also makes Bitcoin a less appealing option for investors looking to use it as a stable store of value. > * Yes, Bitcoin is [less volatile than the DJI and Nasdaq](https://www.cnbc.com/2022/10/21/bitcoins-volatility-falls-below-nasdaq-and-sp-500s-for-first-time-since-2020.html), but this is not a fair comparison because the latter are stock indices. Instead, Bitcoin should be compared to the USD as they are more similar in functionality - and as expected, Bitcoin is much more volatile. > * There is also a perception that Bitcoin is complex and difficult to understand, which can be off-putting for some people. The underlying technology behind Bitcoin, blockchain, and a "decentralized network of network validators secured by a SHA-256 hashing algorithm" is a novel concept that can be extremely difficult to grasp for those unfamiliar with it. Yes, [98% of Americans](https://finance.yahoo.com/news/crypto-comprehension-study-98-people-190349019.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACCMe7hgrXllV_mlEw5tn7u-RoTKVu8UOYrfAhQHYKzUAGM48E4hQZFLRcL4GVt0esSNwGtDtWuNN8LD3ivbs2pcRmmXKpAAhCIw3ZGQQBTMTh4oR0X1OQSWD_jHYbNrgH2lOl0Wj-j6f59cNve0I7q_VF1bIqIqpbD9di-SF8yB) do not understand basic cryptocurrency concepts. > * This lack of understanding can lead to skepticism and distrust in the underlying technology, further contributing to the stigma surrounding Bitcoin. > * Another factor is its lack of regulation - because Bitcoin is decentralized and operates outside of the traditional financial system, it is not subject to the same level of regulation as fiat currencies. > * This lack of regulation has led to [concerns about its security](https://www.theguardian.com/business/2021/oct/01/imf-warns-of-global-risks-from-unregulated-cryptocurrency-boom) and potential for fraud, further contributing to its negative reputation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuu9/top_coins_bitcoin_conarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/13uf7rz/daily_general_discussion_may_29_2023_gmt0/).

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all over the world](https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country). > * This global distribution ensures that the network is resistant to censorship and manipulation, as it is not dependent on any single locale or group of individuals. > * In contrast, fiat currencies, such as the USD or the Euro, are controlled by the central banks and governments of their respective regions. > * This centralization can make them more vulnerable to the same manipulation and censorship, as their decision-makers are concentrated in a single location as opposed to being geographically and ideologically distributed. > > # Fast and Cheap > > * In comparison to traditional banking systems, Bitcoin's fees are significantly lower. > * [According to yCharts](https://ycharts.com/indicators/bitcoin_average_transaction_fee), the average fee for a Bitcoin transaction is currently around $1.1. > * This is significantly lower than the [fees charged by traditional banks](https://slate.com/news-and-politics/2016/01/banks-charge-high-fees-because-there-is-no-real-competition.html) for processing transactions or holding funds, which can be several dollars or more, and can in certain cases scale depending on the size of a transaction. > * Bitcoin's relatively cheap fees are likely because it does not entail the physical movement of funds nor the use of expensive infrastructure, which also makes it inherently more scalable. > * In terms of transaction speed, Bitcoin is also faster than mainstream payment methods. > * Transactions made using Bitcoin can be processed and verified [within a matter of minutes](https://ycharts.com/indicators/bitcoin_average_confirmation_time), compared to the several days or even weeks that it can take for the latter. > * Overall, the low fees and fast transaction times of Bitcoin make it a convenient and cost-effective alternative to traditional banking and fiat currencies. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/xsvuvr/top_coins_bitcoin_proarguments_october_2022/) to be taken to the original topic-thread for this argument or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Bitcoin) to find arguments on this topic in other rounds. Pros and cons per topic will likely change for every new post.

CointestMod

#Bitcoin Pro-Arguments Below is an argument written by noxtrifle which won 1st place in the Bitcoin Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. Submit an argument in the Cointest yourself and earn Moons if you win. Moon prizes are: 1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 500. > Bitcoin is a decentralized cryptocurrency [conceived in 2008](https://en.wikipedia.org/wiki/Bitcoin) by a pseudonymous individual named [Satoshi Nakamoto](https://www.investopedia.com/terms/s/satoshi-nakamoto.asp). It was released as open-source software in 2009 and has since gained widespread use as a means of exchange, popularized by its ability to allow users to send and receive payments on a peer-to-peer network. > > Transactions made using Bitcoin are in blocks through cryptographic calculations carried out by miners and are recorded on a public ledger called a blockchain. Miners, also known as network validators, use a [Proof-of-Work consensus mechanism based on the SHA-256 algorithm](https://www.simplilearn.com/tutorials/cyber-security-tutorial/sha-256-algorithm) to determine the next global state of the blockchain. Therefore, it is irreversible. > > In addition to its decentralized nature and lack of reliance on intermediaries, Bitcoin has several other advantages over traditional fiat currencies; including a fixed supply, low transaction fees, and fast transaction times, among several others. > > # Decentralized > > * Bitcoin is (or at least, aims to be) decentralized, meaning it is not controlled by a singular authority or institution. > * This decentralized structure allows Bitcoin to operate without the need for intermediaries, such as banks or financial institutions, and [gives users greater control over their own assets.](https://forkast.news/why-decentralization-protect-user-data-privacy/) > * One aspect is the geographical distribution of its miners, who [can be found all o