Earlier today we listed the five reasons why Bitcoin might thrive in the future and we promised to enumerate five reasons on the other side of the coin. In other words, motives for the possible failure of Bitcoin. So, here they are:
1. Bitcoin is volatile
Skeptics always point out that Bitcoin is not viable in the long term because it’s extremely volatile. Something we witnessed during the Cyprus crisis, like you read here. This episode highlighted the instability of the currency’s value and the impossibility of predicting the future.
2. Bitcoin must be regulated
We’re still waiting to see what great countries like the United States or Russia will do to regulate Bitcoin. The USA government, for instance, already acknowledged Bitcoin, so the cryptocurrency will eventually be regulated. This means the digital coin will be subject to the current rule of law regarding the general rules of currency manipulation and transmission. Many people believe these changes will make Bitcoin less attractive.
3. Bitcoin has scalability limits
Currently, In its current state, Bitcoin is limited in terms of scalability. This means that, in order for it to expand, the software and the servers backing the currency will have to evolve. However, there is no indication that this can happen.
4. Bitcoin is not totally safe
Let us clarify this: Bitcoin is not dangerous at all, it’s actually quite safe, but not 100 percent safe. Yet, there’s anything 100 percent safe? No. Just like credit cards or other types of currency, Bitcoin also has some flaws, mainly because cryptocurrency is still new and, therefore, susceptible to hackers’ attacks.
5. Bitcoin wasn’t tested
The fact that Bitcoin grew so fast in users number and popularity make it seem something uncertain, something that was never tested in order to check its ability to function in large scale. Many people still see it as just an experiment, but cryptocurrency is already past this stage. Unlike other currencies, like the US dollar, there’s no empirical data that can predict or explain Bitcoin’s behavior.
After reading this (and the first part of our article), where do we stand? Well, it’s really hard to determine Bitcoin’s future possibilities for now and even its own survival, but cryptocurrencies aren’t going away so soon.