Bitcoin has been the subject of endless debates as to its authenticity, relevance – and the promise it holds for those optimistic enough to believe this virtual commodity can make them rich.
The biggest problem
In the midst of skepticism – and its fair share of accolade – bitcoin (BTC) still has to prove its mettle and convince market players that it’s the best investment for their future.
However, to a certain extent, bitcoin remains a somewhat ‘nonnative’ piece of currency that’s almost exclusively for geeks and early proponents captivated by its suburbanized characteristic.
Why bitcoin, up to now, is on rough sailing in terms of being embraced by the general public according to finance gurus, could hinge on one crucial factor: TRUST.
“The biggest problem, rather ironically is trust,” Investing.com senior financial analyst Clement Thibault disclosed.
“Most people do not understand the digital currency and only see Bitcoin’s erratic price movement. A lack of understanding coupled with wild price swings create a negative environment for adoption,” he emphasized.
It’s about people
In a nutshell, cryptocurrency is simply just about people too. No matter how intricate our perception of it is, at the end of each trading day, it’s the real-world people and their social interactions around this complex web of hashes and algorithms that matter the most.
In his “Transparency, Trust, and Bitcoin” article published in June 2015, author Tim Sullivan was on point when he stated that: “At the heart of any currency is trust: trust in one another. After all, anything can serve as a medium of exchange, as long as it’s scarce—gold, counterfeit-proof paper, cigarettes, tins of anchovies, giant stone heads—provided that we all agree on it.”
On scams and distrust
In the same vein, PCG Advisory Group founder and chief executive officer Jeff Ramson shares his own views on trust: “Bitcoin’s biggest problem at this point is that the general public unfairly associates it with ICO scams.”
A recent study conducted by Statis Group, a highly-respected advisory agency, divulged that more than 80 percent of initial coin offerings (ICOs) carried out in 2017 were all scams.
The research delved into major issues surrounding ICOs – from the first round of a sale proposal – to the most mature period of trading on any given virtual currency exchange at the time.
Meanwhile, here’s a compelling thought by Bitcoin for Dummies: “With bitcoin, trust has to work on both sides. Even though you as the user are always in control of your own finances, you still have to trust the rest of the bitcoin network to not drop off the face of the earth tomorrow.”
Finally, a point to ponder: Trusting bitcoin is a decision that only you can make. After all, it was, is, and will always be intended to put you in control of your crypto money.
Do you agree that trust is the most important element in investing in bitcoin? Tell us why in the comments below.