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Reddit Posts

r/BitcoinSee Post

I'm really worried about SHA-256

r/CryptoCurrencySee Post

How to (instruction) quickly make wallet with right balance of safety and usability

r/BitcoinSee Post

Verifying bitcoin core

r/BitcoinSee Post

Bitcoin uses SHA 256 hash functions

r/CryptoCurrencySee Post

Flaws of Bitcoin

r/CryptoCurrencySee Post

[Serious] Is Bitcoin secure? A reaction to “BTC whales are waking up, were their wallets hacked?"

r/BitcoinSee Post

Satoshis secret message

r/BitcoinSee Post

SHA-246 Visual w/ Mining Header

r/BitcoinSee Post

How can I fix this?

r/CryptoCurrencySee Post

Countering all the major anti-crypto arguments in one post.

r/BitcoinSee Post

Part of SHA256 Visual Mapping

r/CryptoCurrencySee Post

A quick explanation the CZ Interpol Red Notice Rumour

r/CryptoCurrencySee Post

phishing email "from" coinbase passes dkim?

r/BitcoinSee Post

Can ChatGPT4 have the computational power to break the SHA-256 encryption? Or does that have nothing to do with it?

r/BitcoinSee Post

Specter verify SHA256SUMS.asc Not Matching

r/CryptoCurrencySee Post

Computer Science IB Extended Essay

r/CryptoCurrencySee Post

Quantum computing and crypto developments

r/BitcoinSee Post

SHA 256 is a cryptographic hash function that is used to secure and validate transactions on the Bitcoin network. This algorithm was originally developed by the National Security Agency (NSA) in the United States as part of a series of secure hash algorithms.

r/BitcoinSee Post

Who would've thought that the algorithm used by the world's most popular cryptocurrency was originally designed for space exploration? That's right, NASA's SHA-256 algorithm is the backbone of Bitcoin's security and immutability.

r/BitcoinSee Post

Bitcoin’s SHA256, nonce hitting above the target.

r/CryptoCurrencySee Post

It's a Trap!

r/BitcoinSee Post

What do you guys think will happen to bitcoin if quantum computers break SHA256 and solve the discrete logarithm problem (ECDLP)?

r/CryptoCurrencySee Post

SHA256 vs Scrypt: How Comparing Hash Rates is Misleading | NKMAG

r/CryptoCurrencySee Post

Litecoin vs Ripple: Differences, and Everything You Need to Know

r/CryptoCurrencySee Post

MoneyShow announces the Peercoin blockchain will be used as an important part of its new newswire service.

r/BitcoinSee Post

How do I generate master key from the root seed

r/CryptoCurrencySee Post

Storing seed phrase on encrypted USB drives

r/BitcoinSee Post

I found the money, but I can't get it out

r/CryptoCurrencySee Post

Going back to basics, Bitcoin 101

r/CryptoCurrencySee Post

How does mining work?

r/CryptoCurrencySee Post

How mining works?

r/BitcoinSee Post

How mining works?

r/BitcoinSee Post

A few questions.

r/BitcoinSee Post

SHA256 Vs. Scrypt

r/BitcoinSee Post

Does Quantum Computing pose a threat to SHA-256?

r/CryptoCurrencySee Post

Do this to verify your BTC holdings in Binance new Merkle Tree Proof of Reserves And Liabilities

r/CryptoMoonShotsSee Post

Toon Finance - Space Battle Grounds - Delicious Handmade Sweets - Verified Contract - Smart Staking Featured - Buy With Credit Card - Launching Now

r/CryptoCurrencySee Post

Been a big fan of Bitcoin but I want to hear why I might be wrong and what can we improve on.

r/CryptoCurrencySee Post

When a big tree falls in the forest…

r/BitcoinSee Post

Why do we assume the original protocol will endure?

r/CryptoCurrencySee Post

Help me out!! Exam-crypto related questions

r/CryptoCurrencySee Post

Help me out!! Exam- crypto related questions

r/BitcoinSee Post

Message Schedule Expansion in SHA-256

r/CryptoCurrencySee Post

A great post explaining SHA-256 in detail

r/CryptoCurrencySee Post

Happy 11th Birthday Litecoin

r/BitcoinSee Post

What Is SHA-256? A Deep Explanation of Bitcoin's Hashing Algorithm

r/CryptoCurrencySee Post

The awakening of “lost Bitcoin”

r/CryptoCurrencySee Post

How much will Bitcoin be worth in the year 2140?

r/CryptoMoonShotsSee Post

Royal | Escrow Market | Royal Market is one of the largest darknet markets with more then 2 years online |

r/CryptoMoonShotsSee Post

Skc Is A Peer-to-peer Version Of Digital Assets Supporting A Consensus Mechanism Based On The Candidate's Skein For Sha3 Hashing. Skc Has A Fast Lock Time, Which Leads To Faster Transaction Times And Uses Flexible And Energy Efficient Hashing.

r/BitcoinSee Post

The Bitcoin Difficult - In-depth explanation with a LOT of PICs.

r/CryptoCurrencySee Post

SHA256 vs Scrypt: How Comparing Hash Rates is Misleading | NKMAG.com

r/CryptoCurrencySee Post

SHA256 vs Scrypt: How Comparing Hash Rates is Misleading | NKNMAG

r/CryptoCurrencySee Post

Winter is Coming for Crypto Mining

r/BitcoinSee Post

Cloud Mining

r/BitcoinSee Post

PoW Consensus Change To Combat Attack

r/BitcoinSee Post

Why Banning Bitcoin Mining Is Nonsense

r/CryptoCurrencySee Post

Thoughts? An approach to storing seed phrases digitally

r/CryptoCurrencySee Post

Jim Cramer Talks Smack About Crypto After Watching BitBoy But Bitcoin Bounces & Pumps Above $20,000

r/BitcoinSee Post

Bitcoin Quantum Computing

r/BitcoinSee Post

Bitcoin computes this SHA-256 hash function 200,000,000,000,000,000,000 times EVERY second

r/CryptoCurrencySee Post

A simple explanation of what a blockchain is and how mining works.

r/CryptoCurrencySee Post

Today my bank manager told me that crypto is just a scam

r/CryptoCurrencySee Post

My theory on why Bitcoin was created by the government as an alternative to cash for criminals to make them feel secure in a cashless society.

r/CryptoCurrencySee Post

Idea: make tokenized hashrate for different algorithms and efficiencies of miners

r/CryptoCurrencySee Post

Pulsechain Airdrop - Scam or not?

r/CryptoMoonShotsSee Post

Croxyy Ecosysem || A project with a registered company in process in Austria | Low MC x100 potential real utility coming | own Marketplace coming.

r/CryptoCurrencySee Post

Free 15-Hour Course on Blockchain and Cryptocurrency Technologies

r/CryptoCurrencySee Post

Devcoin, the third altcoin with 11 years of blockchain-based cryptocurrency

r/CryptoCurrencySee Post

Bitcoin, 13 years old

r/CryptoCurrencySee Post

The Third Altcoin Turns 11 Years Old, 10th year of Bitcoin Merge Mining!

r/CryptoCurrencySee Post

Seed phrase storage

r/BitcoinSee Post

Starting version 2 of a visual expression of SHA-256. These are markers added to try to find the visual timing.

r/BitcoinSee Post

SHA256 Compression Phase ( A rough working on the details.)

r/BitcoinSee Post

My Visual Representation of SHA256 (criticism most welcome)

r/CryptoCurrencySee Post

Have you ever wondered how mnemonic seed phrases are generated for a crypto wallet?

r/BitcoinSee Post

Did Satoshi "create" anything new for Bitcoin? Or did he simply tie existing things together in the perfect way?

r/BitcoinSee Post

Proof-of-Prowess Consensus; 99.5% Energy Savings with Existing SHA256 Hardware

r/CryptoCurrencySee Post

I just transfer my 401k to an exchange. In the next twelve months I’m dollar cost averaging into the cryptocurrency market.

r/CryptoCurrencySee Post

Does the NSA control Bitcoin? - Spoiler - No. - A look into the birth of Bitcoin algorithm, SHA-256.

r/BitcoinSee Post

Think and Answer

r/BitcoinSee Post

Question about the SHA-1 Collision

r/BitcoinSee Post

If an attacker could generate arbitrary SHA-256 collisions, what would happen to Bitcoin?

r/BitcoinSee Post

5 intrinsic values of Bitcoin.

r/CryptoCurrencySee Post

What attack vectors does a blockchain actually stop?

r/BitcoinSee Post

Is BTC only as good as SHA-256? (Quantum Computing & Post-Quantum Cryptography)

r/CryptoCurrencySee Post

Is BTC only as good as SHA-256? (Quantum Computing & Post-Quantum Cryptography)

r/CryptoCurrencySee Post

Is this legit?

r/CryptoCurrencySee Post

Integer Factorization as proof of Work (PoW).

r/CryptoCurrencySee Post

Blockchain Basics & Consensus (summary of MIT lecture 2018 by Gary Gensler, lecture 4)

r/CryptoMoonShotsSee Post

$PKT Cash — decentralized layer-1 blockchain project with real utility aspects based on PacketCrypt proof of work — listed on BitMart and Bittrex

r/BitcoinSee Post

two important alerts for users of Bitaddress

r/CryptoCurrencySee Post

Satoshi has come back to hard-fork Bitcoin to proof-of-stake after quantum scientists break SHA-256 encryption algorithm

r/CryptoCurrencySee Post

Quantum computer solves Bitcoin's algorithm for the first time in history, BTC drops 20% in minutes

r/CryptoCurrencySee Post

Crypto Buzz-Word: Sharding. What is it and what are the different ways to shard? (Disclaimer: Long Read)

r/CryptoMarketsSee Post

Anyone got any ideas on hot coins to mine that run on the SHA-246 algorithm?

r/CryptoCurrencySee Post

What is your level of knowledge? I made different levels so you can know it

r/BitcoinSee Post

Bitcoin Wallet is Secured by RIPEMD160

r/BitcoinSee Post

13 years after the creation of Bitcoin. Still: 10 Minutes Per Block, Difficulty Adjustment Every 2,016 Blocks, 21 Million, SHA-256, 99.99% Uptime, Never Hacked, Open Source, Decentralized, Immutable, Growing.

r/BitcoinSee Post

Relationship with private keys, public keys and addresses

Mentions

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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.

Mentions:#SHA

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.

Mentions:#SHA

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.

Mentions:#SHA

#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.

Mentions:#SHA

#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.

Mentions:#SHA

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

Mentions:#SHA

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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.

Mentions:#SHA

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.

Mentions:#SHA#STM#BTC

#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/).

Mentions:#SHA#Ly

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

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.

Mentions:#SHA#PC

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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.

Mentions:#SHA

#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/).

Mentions:#SHA#Ly

#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/).

Mentions:#SHA#Ly

#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.

Mentions:#SHA

#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