Is Bitcoin real or fake?

Bitcoin is here to stay, but to answer you question, we have to look at what Bitcoin has now become. Initially it was seen as a method for lowering the costs and barriers of transactions between people. However, as the price of Bitcoin has risen (along with its transaction fees), it has moved more towards being seen as a store of value. Bitcoin is a financial asset.

As with assets like gold, or even the US Dollar, what will define Bitcoin as being ‘real’ will be the perception people have of its value. Gold is metal, aside from use in jewellery or electronics, its use as an asset is minimal. But as with Bitcoin having a finite number of coins, the scarcity attached to the supply of Gold results in it being seen as valuable.

Some factors that could diminish Bitcoin’s perception as a store of value are:

1. Regulation can’t stop Bitcoin, but it can stop liquidity entering Bitcoin. If large scale institutional money is restricted from entering cryptocurrencies (the global derivatives market is worth $1.2 quadrillion - see image below), then Bitcoin will eventually reach a peak and that will cause a selloff.
2. Scams (pump and dumps/frontrunning) in other crypto assets will undermine faith in the industry as a whole, preventing true mass adoption of all cryptocurrencies. Bitcoin will be tarred and feathered with the same brush attached to other crypto projects
3. ICOs are being used by concepts that have no need for blockchain technology. This could breed resentment and scepticism from investors about the concept of blockchains.
4. Blockchains are still unproven technologies. The cracks in the road that we have seen from hard forks and fraud will lead to inevitable future crashes and discussions about the viability of the tech.

For an in-depth look on the ‘downside perspective’ on Bitcoin and cryptocurrencies, which draws upon some historical comparisons, 

Answer is given by Quora.com expert 

Rajeev Jeyakumar