Bitcoin comments on article number 3.of shri Uday Pingale sir.
I read article number 3 on Bitcoin of shri Uday Pingale sir. I would like to clarify here about two statements mentioned in his article.
1. His claim that Bitcoin is reliable. When the founder or generator of the Bitcoin is not known or hiding and do not want to disclose his identity right from creation, why the word "Reliable" is used. Reliability comes from its history, past or reputation. When there is no existence and no past or known reputation how can you say about its reliability?
2. The second statement that "The creator Satoshi Nakamoto does not have any role in management of Bitcoin". This is incorrect, because total number of Bitcoins available in the market is 21 miliion of which there is assumption that Satoshi Nakamoto holds around 980,000 Bitcoins (around 4.666% of total Bitcoin supplies) and remaining quota is available for sale and purchase or mining ( an award for running the system using own sources but using strict methodology defined by Bitcoin creator). As soon as these 21 million bitcoins exausts or held by holders, the new Bitcoins can not be generated (minted). Offcourse they say that this protocall ( supply of bitcoin ) can be changed at eventual time. That means when you do not know the rule of the game in future, you are playing blind. The protocall can only be changed by economical majority of holders. If that change is going to do more harm than benefits ( I dont know, to whom?) then such protocall can not be changed. That means marginal bitcoin holders are at the mercy of mighty bitcoin holders. ( like any other economy).
3. The main concern of Bitcoin is not having any intrinsic value. Let us consider a Diamond or Gold. The supply of these assets is quite limited. Both Diamond and Gold have their own characteristics recognised over ages and hence command an intrinsic value. You may say that these assests were also worthless when they were discovered but when they got patronage from wealthy men including kings and kingdoms, they become valuable assets and command value as per their characteristics.
What is that in Bitcoin or any other crypto currency which command so much valuations other than reasons of technological advantages of blockchain or limitted supply of the asset?. All are similar in nature except some minor changes in which they are processed.
You are aware that technologies change very fast. The search engine yahoo lost its shine once google is prefered by people because of its technological advances. Nokia mobile which was dominating market for 25 years lost its shine once 4G came and so on and forth. So please understand that these assets are highly volatile. More the intrinsinc value, more the longitivity of worth of an asset. Advocates of Bitcoins paint a picture that more the risk, more the reward, which is a laughfing statement. Taking a blind risk is susuidal attempt. The risk should be calculated. You should take a risk but should also have plan B to cover the risk.
The Mr Uday Pingale has also added advantages of blockchain while explaining crypto currencies. Readers should understand that though blockchain is sound technological innovation its all applications need not be based on sound principals.
Myself do not consider Bitcoin as an asset but a medium to transact and a means of speculation or money laundering created by wealthy people. You can go through the following article in financial express and gain more insight on same.
Madhav Bhole
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