What do you need to know about Bitcoin?

The depreciation of any currency is acceptable; there are enough reasons for this. One of the common reasons for the depreciation of world currencies is hyper-inflation, which is not possible with the bitcoin system. However, if we consider other economic factors and market risks, then unfavorable conditions are acceptable for bitcoin. Today, the Bitcoin network is showing its growth and potential.

Can the Bitcoin system be considered a Ponzi scheme or a pyramid scheme, or is this opinion erroneous?

The price of each coin goes up quickly, but at the same time, it is not necessary to assert that there will be a further downward correction in value. Price fluctuations in the value of a digital currency are associated with the total volume of actions of users of the trading platform, and market volatility occurs until the correct value is determined. Price changes may occur against the background of a decrease in the level of trust in the network, against the background of global economic events, and against the background of speculation.

As for the Ponzi scheme, the digital currency has nothing in common with this type of fraud. Recall that a Ponzi scheme is an operation for users to invest in a system, which in turn compensates participants for the amount from their income or from the money invested by the next investors of the pyramid. Such schemes usually collapse as soon as new investors stop contributing funds.

The bitcoin project is open-source without a controlled central authority. Just like other world currencies, bitcoin has no additional guarantees that the consumer capacity will grow and remain. The price of a currency is volatile. The bitcoin network is competitive and in demand among users today.

Is it true that for those who became fans of the Bitcoin project earlier, profits are provided in an "unfair" amount?

If we compare the number of profits of Bitcoin users who joined the payment system earlier and new participants, then there are certainly differences. The first investors of the network took on numerous risks and trusted their untested and new technology; at first it was difficult enough to guarantee the safety of the participants. The first users of the payment system actively spent money even before it became as valuable as it is today. It is unknown whether each bitcoin will retain its value in the future, and which users will benefit.

Will there be a limited number eventually?

The limit on the amount of funds created is already known to each user in advance; the permissible number of bitcoins created is 21 million. Further, transactions in small denominations are allowed, for example, in bit, which is a millionth of bitcoin.

What are the experts' predictions if the digital currency finds itself in a deflationary spiral?

What are the main conditions for the existence of a deflationary spiral? If consumers expect lower prices, then purchases will be made at lower costs, so you can save money. When the level of demand decreases, entrepreneurs lower prices, stimulating demand, which can lead to economic instability in the market.

Of course, such a theory is similar to the theory of education and existence of inflation. The cost grew gradually along with the pace of development of the bitcoin economy. The creation of a digital currency provides for an increase in inflation at the initial stage, and stability is expected after a few years. Why can the value of a digital currency decrease? This can happen if the system participants lose their own wallets without creating backups. With stability in the economy, the price of bitcoin will remain stable.