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Why Is Bitcoin Dangerous? Why Has It Enraged Central Banks?

04.08.2015
 Проблемы биткоина 
Financial wars, currency “bubbles”, instability of currency in the markets lead us to the idea of creating a new payment system. While some specialists are dreaming about return of the “gold standard”, others see the future in using virtual money - cryptocurrencies.
BitCoin is a virtual payment system with a unit of account - Bitcoin. A Japanese man under the pseudonym Satoshi Nakamoto is considered as the founder of the system, which was launched in 2009; however, his real name and motives are unknown.
The creation of Satoshi became well-known in 2013 when Bitcoin rose in price 100 times and millions of people became infected with the idea to purchase cryptocurrency urgently. Though, later Bitcoin fell in price losing most of gains. This “roller coaster” forced many experts to look at Bitcoin as a financial pyramid; however, there is another opinion. So, what is good and dangerous in Bitcoin, and why has it enraged Central Banks?
Advantages
  In fact, the cryptocurrency has only two, but very significant, advantages: its deflation nature and anonymity. For economists the first aspect is more important, while for ordinary users the second one is of first priority.
Emission of Bitcoin takes place in accordance with a given algorithm and does not depend on the Central Bank or political authorities. What is even better, the founder has set the maximum for the issue of the cryptocurrency: 21 million by 2033. As a result we have received initially deflationary (rising in price) and independent from politics currency. This aspect is especially appreciated by supporters of the new financial order.
Ordinary users are attracted with Bitcoin’s anonymity, which annoys official authorities all over the world. Origin and movement of Bitcoin accounts are almost impossible to monitor; the cryptocurrency crosses state and continent boundaries with one mouse-click. Of course, it is practically impossible to impose taxes on such income. That is why it is considered that popularity of the cryptocurrency is due to major criminal players who use it for money laundering.
Disadvantages
  There are many cons. The principal one is that Bitcoin is not a currency indeed. By definition, monetary units should be: a) recognizable and b) liquid. The cryptocurrency does not fit this definition. Its exchange rate is changed every 10 minutes, exchange of Bitcoin for real money presents severe difficulties. And of course, no one bank will accept your cryptocoins as true money. Very negative attitude to Bitcoin on the part of all major Central Banks complicates the situation even more.
Beside fundamental reasons, there are technical reasons to delay opening a Bitcoin account. For example, in case of hard disk failure you may lose all saved cryptocurrency.
Security of Bitcoin is also questionable. Frauds can hack your password and clean up your Bitcoin account; though in the epoch of e-money the same situation can happen with an ordinary credit card.