Is Bitcoin The Embarrassment Of Blockchain?

Is Bitcoin The Embarrassment Of Blockchain?

By andreaskanel | Altcoin Adventures | 22 Feb 2020


The arguments of those who believe that cryptocurrencies are a "bad application" and counterfeits. The importance of trust and credibility. A critical battle in the $ 9,600 zone.


Blockchain technology is useful. It's an interesting innovation that will help our lives, but Bitcoin is a bad application. They are for illegal, gamblers, people who want to make suspicious transactions on the "dark web".


How many times have we not heard this argument! This is the safest way to understand that those who use these terminologies are half-baked. They ignore the subject they are talking about. They just parrot something they have heard. Ask them which of the features or features of blockchain blockchain uses are problematic. You will laugh at their embarrassment.


Mostly the opposite happens. Blockchain is used in a bunch of applications that are actually useless or just not working. On the contrary, Bitcoin has proven to be the most successful application. Why is this happening?


One of the fundamental mechanisms behind the Bitcoin network is the proof of work. It creates a competition for everyone involved in network security, with the winner being paid on Bitcoin. Therefore, at that time of reward, Bitcoin is not just a value-added vehicle. It is the basis of the blockchain's security mechanism, which ensures that despite the fact that the participants are anonymous and unknown to each other and therefore have no reason to trust each other, they will be treated honestly and responsibly. That they will follow the rules of the protocol.


How does the network recognize them? From the confirmation that they have consumed energy. In return they might be rewarded with Bitcoin unless they try to cheat. This competition, this game theory, is the foundation of Bitcoin security.


Here's the problem. If you remove the reward, the system that rewards the participants, then you remove the incentive. Not to get involved, but to want to make sure no one steals. Or even that the system will not be powerlessly powered, either deliberately or by mistake, with incorrect data.
In the end, there will be no security. Blockchain uses the currency, any currency, as a security mechanism. If you remove the remuneration with the currency, you need to find another way to ensure that there is no way to avoid fraudulent interference. Who; Not yet found.


The biggest, most impressive achievement of Bitcoin, is that it made people who didn't know each other (so they had no reason to trust each other) to trade in a lucrative environment of trust. They may reside on the other side of the planet, perhaps in hostile states. And yet, they exchanged money directly without losing a single cent.


Think about it a little. How many of you have lost money from someone you know personally? Either deliberately or by the debtor's weakness. Even if there is a legal document certifying the debt. If not you, there is no chance that this has not happened in your close social circle.


On the Bitcoin network, an average of 350,000 transactions are made daily in the last year. And yet, there has never been the slightest problem. Never! No need for mediation. No bank, no lawyers, no contracts. Nothing at all. And all this among strangers!

 

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But this is not only an achievement. There is another, equally impressive one, due to the reward system. He has never stopped working for 10 years. Non-stop, 24 hours a day, 7 days a week, 365 days a year. It doesn't even close for maintenance.Facebook and Google, these tech giants, have been cases that have frozen. Bitcoin has never stopped. Not even a second. I don't know if you understand what that means. A system, an offensive currency that, in turn, directly threatens the entire financial sector and half the governments of the planet, continues to work, having been attacked at all levels. And that not only survives but spreads.


The market today

 

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In the end it seems to hold the support level of $ 9,600 (green horizontal line). As we can see in the 4-hour chart of Bitcoin, this is not the first time there has been a 10% decline in the last rising wave. Something similar had happened just over a month ago, but that didn't stop the top cryptocurrencies from continuing their upward course.

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andreaskanel
andreaskanel

Crypto Enthousiast since 2016, I also write Crypto Topics and on Quora.


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