Bitcoin has not fulfilled its two main purposes

Bitcoin is a universal, decentralized means of payment, which in this case is a unique instrument of capital accumulation. And yet despite the huge profits that cryptocurrency has brought to early investors, some consider it a very unreliable investment. Recently serving another criticism of Bitcoin has been voiced by the working group of the international club Big seven — that is G7. Experts saidthat the crypt and was unable to fulfil its two main purposes.

At the moment Bitcoin is trading at 8222 dollars. For the past day the price of the cryptocurrency has not changed, while its market capitalization reaches $ 148 billion. BTC account for 66.4 percent of the capitalization of the entire market.

What’s not to like G7?

From the point of view of analysts of the working group of the G7, Bitcoin failed asset. Cryptocurrency allegedly not fulfilled its two main purposes — it is not the normal means of accumulation of capital, or a convenient unit of account. All because of four reasons:

  • the high volatility of BTC prices;
  • issues with scalability;
  • the complexity of use for the novice user;
  • problems with the management and regulation of Bitcoin.

The verdict of the report of the G7 is not particularly inspiring: Bitcoin supposedly is only good for speculation and the use of criminals. Whether so it actually?

The conclusions of the analysts is quite strange, let us begin with the first cause “failure” of Bitcoin. High volatility asset has always attracted investors and is a key factor for profit. In addition, in its history BTC has become the most profitable asset in the history of mankind. Is this not the best way to accumulate capital?

The profitability of Bitcoin is really huge. In comparison with the gold coin given to investors by 83 thousand percent more.

Here is an interesting table posted on MarketWatch in March of this year. It compares profit with the investment of $ 100 in Bitcoin at the very beginning of its existence with a profit after investing hundreds of dollars in stocks of the most famous companies at the stage of IPO. The current income shows the last column — we’ve highlighted it in red.

The profitability of the investment of $ 100 in the company under the IPO. Source: MarketWatch

By the way, the data on the cryptocurrency here is a little outdated. Taking into account the current market price of BTC $ 100 invested in the cryptocurrency almost ten years ago, would become 16.4 million dollars. In the end the most popular assets in the stock market showed the following results in terms of profitability since 2009 are as follows:

  • the dollar index (DXY): 19.91 per cent;
  • gold: 69.14 per cent;
  • industrial Dow Jones: 205.17 percent;
  • the S&P 500 index: 230 percent.

Classic markets are on the rise over the last decade, but their profitability does not go to any comparison with the huge amount of early investors in Bitcoin were able to capitalize on the value of a cryptocurrency. The impression that international organizations are trying to tarnish the reputation of cryptocurrencies because of the threat of the global financial system. Still offer Bitcoin fixed so that you can print new coins, the government would not work even at very strong desire.

Even more interesting are looking for in our cryptodata millionaires!

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