{"headers":{"Content-Type":"application\/x-www-form-urlencoded"},"body":"source_lang=&target_lang=PT-PT&tag_handling=xml&split_sentences=1&preserve_formatting=1&text=Will+Bitcoin+fail%3F&text=Part+four+of+Bitcoin+Basics%3A+The+phenomenon+explained+in+plain+english&text=%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EMake+sure+you+have+read+part+3+of+our+bitcoin+basics+series%2C+%3Ca+href%3D%22https%3A%2F%2Fwww.coininsider.com%2Fpt-pt%2Fo-que-e-a-mineracao-de-bitcoin%2F%22%3Ewhat+is+bitcoin+mining%3C%2Fa%3E.%3C%2Fspan%3E%0A%0A%3Chr+%2F%3E%0A%0AIf+you%E2%80%99ve+previously+considered+investing+in+Bitcoin%2C+you%E2%80%99ve+probably+heard+mixed+sentiment+-+with+detractors+claiming+that+Bitcoin+is+a+%E2%80%98fraud%E2%80%99%2C+a+%E2%80%98scam%E2%80%99%2C+or+maybe+even+a+%E2%80%98bubble%E2%80%99.+A+likely+question+on+the+minds+of+everyone+who+has+taken+interest+in+Bitcoin%2C+or+cryptocurrency+in+general%2C+is+%3Ci%3E%3Cspan+style%3D%22font-weight%3A+400%3B%22%3E%E2%80%98will+Bitcoin+fail%3F%E2%80%99%3C%2Fspan%3E%3C%2Fi%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EFundamentally%2C+Bitcoin+is+a+new+paradigm+underpinned+by+a+new+technology+-+the+Blockchain+-+which+we%E2%80%99ve+never+interacted+with+before.+Like+all+new+technology+that+emerges+over+time%2C+Bitcoin+and+the+Blockchain+both+have+tremendous+potential+-+however%2C+that+does+not+mean+to+imply+that+either+are+without+risks.+Neither+are+perfect%2C+nor+without+room+to+improve+in+the+distant+future.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EBitcoin+itself+promises+to+be+the+next+step+in+the+%3Ca+href%3D%22https%3A%2F%2Fwww.coininsider.com%2Fpt-pt%2Fbitcoin-evolution%2F%22%3Eevolution+of+money%3C%2Fa%3E+that+resolves+some+of+the+fundamental+problems+with+our+present+monetary+system.+It+offers+to+be+a+worldwide%2C+peer-to-peer+mechanism+of+exchange+and+store+of+value+that+operates+without+the+interference+of+governments%2C+central+banks%2C+or+other+regulators.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EAs+new+investors+have+jumped+on+to+the+scene%2C+the+price+per+one+coin+has+soared+from+little+over+one+%241c+to+over+%2420%2C000+USD.+All+of+these+factors+have+provided+Bitcoin+with+an+enigmatic+appearance+in+the+media+which+has+either+driven+excitement+or+fear+in+financial+markets.%3C%2Fspan%3E%0A%3Ch3%3E%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EIs+Bitcoin+a+bubble%3F%3C%2Fspan%3E%3C%2Fh3%3E%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EOne+of+the+arguments+interested+parties+will+likely+hear+first+is+that+Bitcoin+is+merely+a+bubble%2C+reminiscent+of+the+%E2%80%98dot+com%E2%80%99+bubble+and+crash+that+kicked+off+the+events+of+the+late+1990s+and+early+2000s.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EThe+parallels+here+are+not+unfounded.+The+emergence+of+Bitcoin+and+the+Blockchain+is+similar+in+base+concept+to+the+emergence+of+websites+on+the+World+Wide+Web%3B+both+have+seen+a+sharp+increase+in+the+price+of+assets%2C+great+public+excitement%2C+and+stories+of+investors+earning+vast+amounts+of+money+have+found+a+home+with+the+media.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EWhat+is+interesting+about+Bitcoin+is+that+it+provides+a+new+store+of+value+independent+from+central+banks%2C+fiat+currencies+such+as+the+Dollar%2C+or+even+gold+or+silver.+Bitcoin+is+free+from+interference+from+centralized+entities+such+as+Bitcoin%2C+and+further%2C+there+will+only+ever+be+21+million+Bitcoins+in+circulation.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EFurther%2C+Bitcoin%E2%80%99s+foundation+is+premised+on+mathematical+proof+-+and+though+storage+mechanisms+%28such+as+Bitcoin+wallets%29+can+be+hacked+-+it+is%2C+in+principle%2C+unhackable.+The%2C+fact+that+the+cryptocurrency+relies+on+a+decentralized+ledger+ensures+that+fraud+is+nigh-on+impossible%3B+however%3B+It+is+important+to+note+that+fraud+%3C%2Fspan%3E%3Ci%3E%3Cspan+style%3D%22font-weight%3A+400%3B%22%3Eusing%3C%2Fspan%3E%3C%2Fi%3E%3Cspan+style%3D%22font-weight%3A+400%3B%22%3E+Bitcoin+is+still+possible%2C+as+it+is+with+the+Dollar.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EIn+these+key+principles%2C+Bitcoin+can+represent+an+amazing+alternative+to+our+current+monetary+systems+that+is+founded+on+the+absolute+reliance+of+mathematical+proof+through+cryptography.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EThere+is+no+way+to+know%2C+however%2C+whether+Bitcoin+represents+an+%E2%80%98investment+bubble%E2%80%99.+Bitcoin+has+continued+to+gain+traction+despite+the+predictions+of+respected+market+analysts%2C+and+there+is+simply+little+avenue+to+forecast+whether+the+cryptocurrency+will+continue+to+appreciate+or+whether+it+will%2C+at+some+point+in+time%2C+diminish+in+favor+of+something+else.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EThe+price+of+Bitcoin+%28and+other+cryptocurrencies%29+is+inherently+volatile.+Given+the+recent+emergence+of+Bitcoin+and+the+Blockchain%2C+the+international+stance+on+either+technology+remains+undecided.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EThe+opinion+of+international+entities+%28central+banks+or+governments%29+to+either+embrace%2C+regulate%2C+or+ban+cryptocurrencies+can+have+an+immense+impact+on+the+price+of+Bitcoin+on+a+daily+%28or+even+hourly%29+basis.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3ERegardless+of+whatever+the+financial+future+of+Bitcoin+is%2C+the+technology+and+concept+that+underpins+Bitcoin+as+a+digital+currency+cannot+be+destroyed.+Presently%2C+there+are+thousands+of+other+cryptocurrencies+-+all+leveraging+the+concept+of+the+Blockchain+in+new+and+interesting+ways.+We+can+likely+expect+to+see+other+such+digital+currencies+%28or+other+ideas+using+the+same+platform%29+in+the+near+future.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EFor+Bitcoin+to+utterly+fail%2C+every+computer+or+network+node+running+Bitcoin+software+around+the+world+would+need+to+be+deactivated.+Since+all+these+nodes+are+independently+controlled+and+spread+all+over+the+world+there+is+no+easy+way+to+do+this.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EInvesting+in+Bitcoin+is+an+incredible+opportunity+but+also+brings+with+it+immense+risk.+By+investing+in+Bitcoin+you+not+only+potentially+earn+money%2C+but+become+part+of+what+could+be+the+next+evolution+of+the+global+monetary+system.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EConversely%2C+investors+run+the+risk+of+losing+all+their+money+or+running+afoul+of+newly-minted+regulations+or+tax+law+as+nations+and+central+banks+struggle+to+keep+up+with+Bitcoin%E2%80%99s+popularity.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EA+wise+policy+for+those+seeking+to+invest+in+Bitcoin+%28or+other+cryptocurrencies%29+would+be+to+only+invest+funds+which+one+is+completely+prepared+to+make+a+loss+on.%3C%2Fspan%3E%0A%3Ch3%3E%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EIs+Bitcoin+a+scam%3F%3C%2Fspan%3E%3C%2Fh3%3E%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EWhile+one+should+take+caution+while+investing+in+Bitcoin+-+as+cryptocurrency+markets+are+inherently+volatile+-+neither+Bitcoin+nor+its+underlying+technology%2C+the+Blockchain%2C+are+a+scam.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EBitcoin+has%2C+unfortunately%2C+developed+a+reputation+that+precedes+it+in+certain+circles+thanks+to+some+of+its+earliest+adopters.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EIn+its+infancy%2C+Bitcoin+found+an+early+home+within+illegal+circles+operating+on+the+internet+thanks+to+the+fact+that+the+cryptocurrency+is+decentralized+and+does+not+pass+through+a+central+regulator.+Further%2C+given+that+the+digital+currency+is+also+relatively+anonymous%2C+Bitcoin+powered+some+of+the+transactions+on+a+massive+online+black+market+called+%E2%80%98The+Silk+Road%E2%80%99+prior+to+its+shutdown+by+the+United+States+Federal+Bureau+of+Investigation.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3ESoftware+hackers%2C+from+time+to+time%2C+have+also+made+demands+that+ransoms+are+paid+in+Bitcoin+or+other+cryptocurrencies+thanks+to+the+fact+that+transactions+can+remain+anonymous.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EFor+these+reasons+-+and+the+fact+that+no+group+can+claim+%E2%80%98ownership%E2%80%99+of+Bitcoin+-+the+cryptocurrency+has+drawn+much+negative+publicity+that+can+at+times+overshadow+the+potential+of+its+underlying+technology.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EMany+notable+investors+have+further+called+Bitcoin+a+%E2%80%98scam%E2%80%99+or+pyramid+scheme%E2%80%99+thanks+to+the+fact+that+Bitcoin+is+frequently+cited+as+an+%E2%80%98unfounded+fad%E2%80%99+that+has+%E2%80%98little+or+no+value%E2%80%99+beyond+what+people+are+prepared+to+pay+for+it.+Some+investors+have+gone+so+far+as+to+say+that+the+millions+of+people+who+have+invested+in+Bitcoin+can+be+prepared+at+any+time+to+%E2%80%98kiss+their+money+goodbye%E2%80%99.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EWhile+Bitcoin+has+certainly+attracted+the+attention+of+many+people+on+the+street%2C+there+is+no+compelling+argument+that+indicates+that+Bitcoin+as+a+whole+is+not+without+foundation.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EBitcoin%E2%80%99s+premise+relies+on+technology+and+mathematical+proof+to+ensure+its+authenticity+-+and+while+it+may+not+be+linked+to+a+rare+commodity+such+as+gold+or+silver%2C+fiat+currencies+such+as+the+US+Dollar+or+British+Pound+are+themselves+no+longer+linked+to+precious+metals.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EAn+important+thought+experiment+is+to+consider+what+provides+a+fiat+currency+like+the+US+Dollar+with+value.+The+most+abstract+and+fundamental+answer+is+that+fiat+currencies+have+value+because+one+believes+they+do.+If%2C+for+example%2C+one+considered+a+US+Dollar+worthless%2C+one+wouldn%E2%80%99t+accept+it+as+tender+for+an+exchange+of+goods+-+and+the+same+example+can+be+applied+to+Bitcoin.+%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EThis+concept+is+hard+to+grasp+for+people+living+in+well+functioning+societies+where+the+government+can+be+trusted+to+act+reasonably+or+responsibly.+One+only+has+to+look+at+countries+like+Zimbabwe+and+Venezuela+to+understand+how+quickly+a+currency+can+lose+its+value+when+people+lose+trust+in+the+government+backing+it.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EBitcoin%E2%80%99s+future%2C+and+its+future+value%2C+will+be+determined+by+how+people+around+the+world+accept+and+use+it.+Arguably%2C+at+present%2C+Bitcoin+has+become+a+form+of+%E2%80%98digital+gold%E2%80%99+through+which+investors+have+stored+their+money.+In+the+near+future%2C+should+merchants+around+the+world+accept+Bitcoin+as+tender+for+goods+or+services%2C+we+may+be+able+to+see+the+cryptocurrency+become+a+more+active+means+of+exchange+similar+to+how+a+fiat+currency+operates.%3C%2Fspan%3E%0A%0A%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EAs+they+say%2C+however%2C+the+future+remains+in+motion.%3C%2Fspan%3E%0A%0A%3Ci%3E%3Cspan+style%3D%22font-weight%3A+400%3B%22%3EIn+part+five+of+our+Bitcoin+Basics+series%2C+we%E2%80%99ll+be+unpacking+%3Ca+href%3D%22https%3A%2F%2Fwww.coininsider.com%2Fis-bitcoin-legal%2F%22%3Ethe+legalities+of+Bitcoin%3C%2Fa%3E+and+the+stances+international+communities+have+taken+on+cryptocurrencies.%3C%2Fspan%3E%3C%2Fi%3E","timeout":15}