If bitcoin trades on the stock market, doesn't it fail its purpose?

Introduction

Trading is one of the most ancient forms of economic transaction. In every part of the world, you will find a history of trading; however, the structured form of trading that we associate with the stock market is a relatively new happening. Right now, you will find a stock exchange in most parts of the world. The stock exchanges allow different individuals and organizations to buy or sell all kinds of company stocks and shares at the global level.

Everything you know about how the stock market and exchanges function was questioned by releasing the flagship cryptocurrency known as Bitcoin. The brainchild of the Enigmatic Satoshi Nakamoto led to the creation of a new kind of virtual exchange. This virtual exchange or a cryptocurrency exchange also facilitates trading but not of tangible assets traded in stock markets but rather intangible e-coins of various kinds.

Questioning whether Bitcoins' purpose will fail if traded in the stock exchange

Since its inception, there has been debate whether electronic currencies can be traded in the stock exchange. The ones for this motion are generally against the decentralized nature of cryptocurrencies and their view of this with utter skepticism. This view that the lack of regulation in the cryptocurrency world leads to criminal activities. They also argue that the intangible nature of cryptocurrencies leads them to lose a lot of credibility. They say that if cryptocurrency joins the stock exchange world, they can gain credibility and get under the regulation other tangible assets face.

However, as rightly pointed out by most cryptocurrency enthusiasts, the whole purpose of building a cryptocurrency is false if it is treated as tangible assets to be traded on the stock market. The first e-coin, Bitcoin, has been created to be free of any governmental control to be used by people worldwide in an equalizing manner. The decentralized nature of Bitcoins which is its primary characteristic loses its value if it enters the stock exchange. Therefore, the resistance against the traditional stock exchange engulfing cryptocurrency exchanges has been seen since the debate started.

Some differences between the stock and Bitcoins

The argument that Bitcoin loses its purpose if it is traded on the stock exchange can easily be grasped if one looks at the fundamental differences between cryptocurrencies and stocks.

Good companies back up stocks put in the market in the hopes of earning profits. However, the actual evaluation of physical assets is done, and this can also be calculated by looking at the stock's market price. This can surely not be possible with cryptocurrencies as, most of the time, these are not backed up by good companies.

The valuation of e-coins depends upon the kind of bus they are creating. Therefore, we can understand that stocks have a more objective valuation than the subjective one we see with cryptocurrencies.

If Bitcoins are traded in the stock exchange, other cryptocurrencies will also follow suit. This will be the very purpose of creating a cryptocurrency as no more can anybody launch a new cryptocurrency. It would then be regulated by the governments of various countries as we see for stocks.

Even the volatile and unpredictable nature of cryptocurrencies that often attracts most electronic currency traders shall be eliminated if introduced in the stock market. Stocks are generally more stable, and most traders use the HOLDing method for tangible assets. With Bitcoin, many kinds of trading methods have been created so that people with zero experience with trading can utilize the decentralized characteristics of cryptocurrencies to earn profits.

Conclusion

If you want to see for yourself the dynamic and fast-paced world of cryptocurrency trading and investing, then choose an official exchange. After that, you can go here, one of the thousands of verified sites where you can truly understand how the Bitcoin trading scene is genuinely different from what the stock market looks like. Keep in mind that even like the stock market, even the Bitcoin trading scene is subject to ups and downs; therefore, you need to do proper research before starting earning profits with cryptocurrencies.