Below are the five factors that have the potential to lead to the demise of Bitcoin.
1. Slowing Transaction Times
Right now, it takes an average time of around 200 minutes to confirm a single Bitcoin transaction, according to Blockchain.com. The average time for the month of December was a whopping 2,322 minutes, or roughly 38 hours, with market experts blaming the unprecedented interest in the digital currency for clogging up the blockchain network.
2. Skyrocketing Fees
People are currently paying around $25 on average to make transactions using the digital currency, much higher than seen in the early days of 2017, according to data by BitInfoCharts.
3. Tighter Rules and Regulations
Ongoing chatter of tighter rules and stricter regulations has rattled investor sentiment, especially in Asia.
4. Mining Problems
China’s government is planning to shut down Bitcoin miners as part of its latest crackdown on the cryptocurrency… The news is significant because China mines about 60% of the world’s Bitcoins, making it by far the biggest Bitcoin mining country in the world.
Another cause for concern: one Bitcoin mining session originally created 50 Bitcoins, then the number dropped to 25 and now it stands at roughly 12.5. Some forecast that by 2020, it will fall to 6.25 Bitcoins which will make mining unprofitable.
5. Loss of Anonymity
Early on, one of the most appealing aspects about Bitcoin was its anonymity. That, however, seems to be changing rapidly, with regulators and tax authorities leaning toward forcing traders to disclose their true identities.
Eulogy made by Jesse Cohen