TOP 9 REASONS WHY UTOKEN WILL OUTPERFORM BITCOIN AND EVENTUALLY OVERTAKES BITCOIN AS THE ULTIMATE DIGITAL CURRENCY OF CHOICE AND NECESSITY. 1. Bitcoins are not regulated, nor do they have any monetary reserves. Bitcoins are paid by individuals and not backed up by any institution, nor controlled by any institution. 2. Bitcoins are easily stolen, and they are not insured by any institution. 3. Bitcoins don’t have any supporting affiliated internal websites or supporting web services that support use of it. It is just marketed as is. 4. If a computer hard drive crashes, or a virus corrupts data , and the Bitcoin wallet file is corrupted, Bitcoins have essentially been “lost”. There is nothing that can done to recover it. These coins will be forever orphaned in the system. This can bankrupt a wealthy Bitcoin investor within seconds with no way form of recovery. The coins the investor owned will also be permanently orphaned. 5. Bitcoin Valuation FluctuatesThe value of Bitcoins is constantly fluctuating according to demand. As of June 2nd 2011, one Bitcoins was valued at $9.9 on a popular Bitcoin exchange site. It was valued to be less than $1 just 6 months ago. This constant fluctuation will cause Bitcoin accepting sites to continually change prices. It will also cause a lot of confusion if a refund for a product is being made. For example, if a t shirt was initially bought for 1.5 BTC, and returned a week later, should 1.5 BTC be returned, even though the valuation has gone up, or should the new amount (calculated according to current valuation) be sent? Which currency should BTC tied to when comparing valuation? These are still important questions that the Bitcoin community still has no consensus over. 6. No Buyer Protection. When goods are bought using Bitcoins, and the seller doesn’t send the promised goods, nothing can be done to reverse the transaction. This problem can be solved using a third party escrow service like ClearCoin, but then, escrow services would assume the role of banks, which would cause Bitcoins to be similar to a more traditional currency. 7. Risk of Unknown Technical FlawsThe Bitcoin system could contain unexploited flaws. As this is a fairly new system, if Bitcoins were adopted widely, and a flaw was found, it could give tremendous wealth to the exploiter at the expense of destroying the Bitcoin economy. 8. Built in DeflationSince the total number of bitcoins is capped at 21 million, it will cause deflation. Each Bitcoin will be worth more and more as the total number of Bitcoins maxes out. This system is designed to reward early adopters. Since each Bitcoin will be valued higher with each passing day, the question of when to spend becomes important. This might cause spending surges which will cause the Bitcoin economy to fluctuate very rapidly, and unpredictably. 9. No Valuation GuaranteeSince there is no central authority governing Bitcoins, no one can guarantee its minimum valuation. If a large group of merchants decide to “dump” Bitcoins and leave the system, its valuation will decrease greatly which will immensely hurt users who have a large amount of wealth invested in Bitcoins. The decentralized nature of Bitcoin is both a curse and blessing.
Posted on: Mon, 19 Jan 2015 06:46:34 +0000
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