Bitcoin is often described as gold 2.0; a superior system of storing and transferring value. It has seen a rapid increase in market capitalization since its introduction in 2009, with strong custodial, exchange, and futures infrastructure.
Yet, one cryptocurrency analyst known as cryptocomicon recently laid out a series of compelling reasons why one should not invest in Bitcon. The three that stood out most were limited privacy, centralized mining, and the lack of scalability.
Despite each of these being valid points to consider, they can also be seen as advantages for BTC.
Zero privacy for Bitcoin is a pro and a con
Up until 2018, governments and various financial bodies criticized the “anonymous” nature of Bitcoin, stating that it poses a risk to the global financial system. But, as reported by Cointelegraph, South Korea recently cracked down on a large-scale sex crime ring earlier this month through tracking Bitcoin addresses.
One could argue that the lack of privacy measures on the Bitcoin network has actually improved the image of the dominant cryptocurrency.
Previously the public and governments perceived Bitcoin as the currency most preferred for use in criminal activities and terrorist financing, but this view appears to have changed in recent years as sophisticated blockchain analytics companies who offer crypto transaction tracking services emerged.
Following the release of the Financial Action Task Force (FATF)’s revised guideline on crypto assets on February 22, 2020, it has become even more challenging to launder money using Bitcoin than ever before.
Thus, the lack of privacy can also be viewed as increased transparency and this could eventually prevent governments from over-regulating Bitcoin-related companies.
Low scalability can push second-layer scaling
The low scalability of Bitcoin is similar to the “no privacy” argument in the sense that it can be comprehended in two ways: it can make transactions expensive when the network reaches its…