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Bitcoin: money of the future or Internet scam?

When the cryptocurrency named bitcoin came into existence in the Internet in 2009, it was hard to foresee how it would turn out in the future: a roaring success or a failure. In the course of time, it has become obvious that neither has happened. Indeed, bitcoin has not been recognized as the common currency worldwide, still being used by the restricted Internet community. However, bitcoin has not disappeared.

Bitcoin was invented by Satoshi Nakamoto as a digital equivalent of gold. Bearing this bright idea in mind, the cryptocurrency makes sense with the right application. It was originally devised as a deflationary currency. It means, the system allows the creation of only a finite number of bitcoins. So as demand rises, the value of the cryptocurrency will go up, thus pushing purchasing power up. Thus, people will be pleased to make payments with it. However, bitcoin was considered by most people to be an investment asset and a method of raising rapid profits, but not as a cheap and instant payment system. The new cryptocurrency was spotted by fraudsters. So its advantages were broadly exploited in speculative bubbles, thefts, online casinos, money laundering, Ponzi schemes, and black markets. Nevertheless, the question is whether bitcoin and similar digital currencies can survive in the long term? Specialists express both optimistic and pessimistic stance, but in principle opinions do not differ greatly. On the whole, analysts share the view that cryptocurrencies, in particular bitcoin, are unlikely to gain the worldwide popularity. According to the pessimistic scenario, bitcoin and other digital currencies are to reach their peak and fade into insignificance, then being used by a narrow IT circle. On the contrary, the optimistic scenario suggests the cryptocurrencies will boom being used in all aspects of an economy. Moreover, later they are expected to replace conventional payment means like bank cards and cash. So bitcoin fans predict that it will eventually turn out to be fiat money.

Though, some countries are ready to greenlight bitcoin as an official payment means. For example, Australia has acknowledged that bitcoin can provide legitimate financial services. However, this issue is still under consideration. This is the first cautious step towards the recognition of the cryptocurrency's legal status. There is still a long way until the digital currency is considered to be a commonly accepted payment means. Most people should put their trust in bitcoin that is rather complicated.


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