Bitcoin is the first successful global peer-to-peer cash implementation that lets everyone store and exchange value with others. Bitcoin has come to stay” and we must raise our glasses to the doggedness of all and sundry involved in the efforts to complement and consolidate the stability, acceptance, profitability, and growth of BTC world over.
In recent weeks, Bitcoin and holders have enjoyed over 8 percent increase in the prices of Bitcoin world over, justifying the decision to hold on to the digital currency and has, in turn, led to a spike in the acceptance, recognition, and investment of individuals and corporations in the digital currency. Going forward, with teeming interest in Bitcoin, it is imperative to educate enthusiasts and potential investors on and about the story so far and in tandem help inform better decisions as to the future of the ‘gold mine’.
On the surface, one of the many perks of BTC and/or cryptocurrency is the accessibility. Without any middlemen, government officials, monetary economists, and other intermediaries or regulators, such a system can operate. Essentially, Bitcoin is the first successful global peer-to-peer cash implementation that lets everyone, no matter who or where they are, store and exchange value with others.
However, the unregulated use of bitcoin itself and the possibility of leaving a holder legally unprotected should anything go wrong has been one of the major concerns in the global market. Secondly in the eventuality of a hard drive crash, or if a virus corrupts your data and subsequently corrupts the wallet file, Bitcoin held on such wallet will be essentially been “lost” with no way to recovering it. The coins in context will then be forever orphaned in the system, therefore, increasing the chance of bankruptcy for a wealthy Bitcoin investor.
Pros and cons of Bitcoin
- The most transparent financial system to date is Bitcoin. All over the planet, and where there is no banking system, you can make payments with Bitcoins 24/7.
- With Bitcoins, foreign money transfers can be quicker and cheaper than with conventional banking and services.
- Bitcoin is the only asset ever created that cannot be taken from you by force (if taken proper precautions). Often, BTC transactions are also not censorable, and no one can stop you from performing transactions.
- Bitcoin also has valuable business features, such as multi-signature authorization and accounting transparency. Multi-signature ensures that many individuals need to sign off on an invoice, which provides more security. And the very existence of a blockchain, where all transactions are public, strengthens a company’s transparency.
- Bitcoin is pseudonymous, and without any authentication or credit history, anyone can open their wallet through the internet. In under-banked regions and third world countries, it is particularly beneficial where most individuals are struggling to get access to capital.
- Bitcoins can be spent on a desktop device, cell phone, or debit card in the same way you spend conventional digital money.
- Bitcoins are deflationary, unlike fiat currencies, implying that their value is set to appreciate by default.
- The most portable asset ever produced is Bitcoin, which can be transmitted via satellite or even radio.
- Bitcoin has the most brand awareness, liquidity, the most integrated ecosystem, and most acceptance among numerous retailers and organizations compared to other cryptocurrencies.
- For small fee, regular retail transactions such as buying tea, groceries, or simply tipping someone online, the Lightning Network can be used for this.
- Bitcoin presents a programmable money principle that allows for more financial developments, such as “smart contracts.”
- By providing an alternative to people who mistrust their government, certain institutions, politicians, or simply believe in the power of decentralization, Bitcoin disrupts the monopoly of capital.
- When things go south, little or no regulatory oversight is needed.
- Despite attempts to allow offline Bitcoin transfers, the use of the currency still depends largely on the availability of the internet.
- As Bitcoin is still in progress, depending on mining efficiency and network congestion, the transaction speed and fees appear to differ.
- Converting Bitcoins to fiat requires payments that are often expensive.
- Bitcoins are not approved by many shops or service providers. The figure is rising, though.
- Bitcoin transactions are immutable, which means there’s no way to bring them back once the money leaves your wallet. While several reputation management tools are being created, the thing with Bitcoin is that there is no “buyer’s protection.” Conversely, since accepting BTC removes the risk of fraudulent chargebacks, it may help merchants.
- Many individuals are not prepared to assume full responsibility for their properties and are unable to safely handle their private keys. Beyond recovery, several private Bitcoin keys have been lost, thereby leading to Bitcoin’s deflation and value appreciation.
- A steep learning curve is given by learning all the latest ins and outs of the Bitcoin ecosystem. In most Bitcoin applications, the user interface is still not foolproof, and the network is not ready to support anyone in the world.
- Securing Bitcoin needs basic knowledge and understanding of cybersecurity. Although the network is practically unhackable, there are organizations and individuals that are trying to hack Bitcoin wallets.
- Bitcoin’s central philosophy goes against the most influential institutions, governments, politics, banks, regulators, and censorship, and before these players can tolerate or approve it, it is likely to face a lot of opposition.
The future we project
According to Coindesk, some economic analysts expect that a big shift in cryptography is coming in January 2021, as institutional capital enters the market. There is also the possibility of floating crypto on the Nasdaq, which will further give prestige as an alternative traditional currency that is powered by the blockchain. Some expect that a regulated trading platform is all that crypto needs.
Any of the restrictions that cryptocurrencies currently face, such as the fact that a computer crash may delete one’s digital fortune, or that a hacker may ransack a virtual vault, may be resolved in time through technological advances. What is more difficult to solve is the underlying paradox of cryptocurrencies the more common they become, the more regulated government scrutiny. They are likely to be drawn, eroding the essential premise of their life.
While the number of merchants embracing cryptocurrencies has risen gradually, they are still very much in the minority. They must first gain widespread acceptance among consumers for cryptocurrencies to become more widely used. However, except for the technologically adept, their relative difficulty compared to traditional currencies would probably discourage most individuals.
A cryptocurrency that aspires to be part of the mainstream financial system may have to follow widely divergent requirements. It will have to be mathematically complex (to deter fraud and hacker attacks) but easy to understand for customers; And maintain user anonymity without becoming a backdoor for tax evasion, money laundering, and other nefarious activities; decentralized yet with sufficient customer protections and security. Since these are enormous requirements to meet, the most common cryptocurrency will probably have attributes in a few years between highly regulated fiat currencies and the cryptocurrency of today? Although that possibility looks distant, there is little doubt that the success (or lack thereof) of Bitcoin in coping with the difficulties it faces as the leading cryptocurrency at present will decide the fortunes of other cryptocurrencies in tA cryptocurrency that aspires to be part of the mainstream financial system may have to follow widely divergent requirements. It will have to be mathematically complex (to deter fraud and hacker attacks) but easy to understand for customers; And maintain user anonymity without becoming a backdoor for tax evasion, money laundering, and other nefarious activities; decentralized yet with sufficient customer protections and security. Since these are enormous requirements to meet, the most common cryptocurrency will probably have attributes in a few years between highly regulated fiat currencies and the cryptocurrency of today? Although that possibility looks distant, there is little doubt that the success (or lack thereof) of Bitcoin in coping with the difficulties it faces as the leading cryptocurrency at present will decide the fortunes of other cryptocurrencies in the years ahead.