For people unaware of the crabbed cryptocurrency world, it would be difficult to understand the concept of Bitcoin. Many experts have brushed it off saying it would disappear quickly and fail, but the pace at which its value is increasing is tempting. Now worth a thousand dollars, newcomers are investing more into this cryptocurrency thinking that the price will only continue to grow.
Many researchers tag it as an economic bubble that is sure to fail and burst one day. But the reasons why it will struggle to succeed in the long run are so much deeper. Although no one can ever predict what may happen in future, but Bitcoin will struggle to survive. There are disadvantages to this cryptocurrency that are simply hard to detour and if we look at the big picture, these could be the reasons for its fall.
Bitcoin introduced Blockchain technology which is a fast, secure and private method of sending money. The blockchain is quite young and exciting, and it’s potential to advance the technology is similar to the Internet. However even though Bitcoin introduced it, it’s not necessary for Blockchain to exist. There are already better, more secure, and faster versions of blockchain (Ethereum and Ripple) available on the market.
Bitcoin was created by Satoshi Nakamoto. A man whose true identity is yet to be uncovered. At the early stages of development, Satoshi helped coders to build the platform and guided them whenever they had a question. As soon as investigation agencies started looking for him, he disappeared. No one knows who he really is. The team of coders and miners now have to come at the same consensus while making decisions for the future of Bitcoin. The problem of leadership can bring it down, forcing it to fail.
Bitcoin offers fast, secure and untraceable transfer of funds. This seems tempting but the possibility that it may support criminals couldn’t be avoided. Bitcoin had already been used for transfer of funds in drug trafficking, and there are high chances that it’s still in use for unethical purposes. The FBI has made it certain that they are observing this cryptocurrency very closely, and are getting better in identifying people engaged in illegal activities over it. That means Bitcoin isn’t completely anonymous. So the only untraceable and anonymous way for financial transactions is hard cash.
Though Bitcoin is used by smaller companies in Silicon Valley, larger organizations still prefer cards and cash for payment. Unless Bitcoin doesn’t involve in business with these bigger companies, it will struggle to survive. The only digital currency currently working with US Federal Reserve, larger corporations, and credit card companies is Ripple. Bill Gates also said that he chose Ripple to run his projects.
Regular users of Bitcoin says that it takes up to six hours to transfer funds. The longer it will exist, the longer will be the time taken by its systems to process information. In a world where everyone needs a faster option, there is no point for people to choose it over other currencies.
6. Fear And Doubt
This cryptocurrency of extremely volatile. When in news, the value of one Bitcoin can change hundreds of dollars in a matter of hours. If the public finds a reason to think it will become illegal, or get hacked or attacked by a virus, they will panic and sell it frequently. This may drop down the value very quickly.