Bitcoin is completely incapable of competing with well-established fiat currencies, mainly because its owners prefer to accumulate rather than spend, and this is the main reason why in recent months its value has almost endlessly skyrocketed. The second argument against bitcoin is that digital currency is too volatile to function as a reliable currency.
Bitcoinprices drop and soar regularly, making it impossible to predict whether tomorrow will be worth what it's worth today. You might pay 10,000 BTC to buy a pizza today, but if Bitcoin prices triple next week, the whole experience can leave you with a bad taste in your mouth.
If prices drop, sellers who accept Bitcoin could witness the total erosion of their profits and capital. Just a decade after its launch, Bitcoin rose from humble beginnings to a market capitalization of $1 trillion. The rise in the price of the asset caused some of its fiercest critics to reconsider their beliefs about the digital currency, given the crowds of people and industry leaders who were delighted with Bitcoin, which changed the world of finance. Any other advantage bitcoin may have over fiat money, such as the speed of transactions, will be eroded when fiat money becomes fully digital.
Despite its high valuations on paper, a collapse of Bitcoin and other cryptocurrencies is unlikely to affect the financial system. But given the decentralized, mobile and global characteristics of cryptocurrencies, any repression usually leads to Bitcoin's activities simply shifting to a different jurisdiction. Securities that allow speculation on Bitcoin prices are already regulated, but there isn't much else the government can or should do. Finally, Bitcoin critics criticize the idea that Bitcoin can replace domestic currencies as an international payment system.
This time, the cryptocurrency rally followed the launch in late October of the first Bitcoin exchange-traded fund on the New York Stock Exchange. The government's success in tracking and recovering part of the Bitcoin ransom paid to the DarkSide in the Colonial Pipeline ransomware attack has raised doubts about the security and non-traceability of Bitcoin transactions. Bitcoin has no intrinsic value, it is a volatile asset, and it's hard to imagine that the world's governments give up control of their currencies and economies. Although Dimon himself seems to think it's unlikely, concerns about Bitcoin's long-term future are not just idle catastrophic.
So, again, no, no one buys bitcoin because of its blockchain technology because there are better options available. When Bitcoin began its path to financial triumph, the price of a single BTC was less than a penny. Bitcoin enthusiasts reason that Bitcoin can replace gold in the long term, or become a gold-like asset to store long-term value. As you saw earlier, the argument against Bitcoin is based on the idea that Bitcoin seeks to replace currencies, but for enthusiasts, it is clear that there is gold at the end of the rainbow.
Bitcoin is a volatile asset and its speculative nature has caused a lot of friction between critics and cryptocurrency supporters.