For 6 years, Bitcoin hasn’t been doing badly in terms of growth. However, considering the potential it has, I think it could be doing a lot better if it weren’t for some factors obstructing its progress.
According to studies, Bitcoin is growing 25% faster than the internet in its early stages – which is quite an impressive feat in itself. but surely anything that has produced such a stirring figure already, can be further improved.
Therefore, the following is a list of the top 5 factors that – if resolved, could lead to Bitcoin’s possible triumph.
1. Bad Reputation
Many politicians and fiat currency supporters present an argument in disfavor, wherein they state that the currency is majorly being used for illegal activities – which is true to an extent. However, the major question that arises is: how does that make Bitcoin – the currency, bad? Cash is used to do all sort of things; drug dealers use it to buy drugs, robbers steal it and killers even kill for it. That does not make cash inherently bad because it’s being used that way.
Just like we view cash as a tool and resource, we need to give that same perspective to Bitcoin and give it the sort of freedom that we give to fiat currencies. Bitcoin is just a resource and how people use it has nothing to do with the currency itself. Once people understand this, Bitcoin growth in terms of adoption, will definitely increase and there needs to be proactive effort on our part to help convey this idea to people.
2. Lack of Understanding
I confess that Bitcoin is not exactly an easy concept to wrap your head around; it has its fair share of complexities, which combined with difficult technological terms makes it a conundrum. Due to this, the layman deems it as a very technical concept that which only the tech savvy can understand which translates into a slower adoption of the cryptocurrency. However, that approach is not entirely correct because there are whole websites dedicated to helping newbies get started with Bitcoins. In fact, that is one of 99Bitcoins goals; If you’re someone struggling to understand Bitcoin and how it works, then feel free to watch our guide on how to get your first Bitcoin.
We also have a YouTube channel where we cover various Bitcoin related questions to help improve people’s understanding of Bitcoin. In my opinion there needs to be more interactive content online dedicated to educating the new-comers in the crypto world.
3. Price Volatility
Many people became aware of Bitcoin when it made the breaking news of reaching $1200+ in November 2013. Folks wanted to get into the currency so that they could trade it and earn some money on the side. But that idea quickly dissipated when people started to see the instability of Bitcoin. This led investors from refraining from investing in Bitcoin labelling it unsafe for investment purposes.
The good news is that in the past year, the price of Bitcoin has volatility decreased – but it still has to go a long way to reach the kind of stability investors can trust.
Jonathan Chester, CEO of Bitwage, while speaking about Bitcoin, says:
“You need it to be accessible, you need it to be usable and you need it to be relatively stable.”
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The stability of Bitcoin will result in a more rapid adoption of the currency and will allow for it to be used as regular means of payment.
4. Blockchain Size
Currently, the blockchain processes almost 100,000 transactions per day. The number of transactions has doubled in volume since last year, sketching out an enormous growth curve. But its bound to grow more and the problem is that, right now the blockchain can only handle 3 transactions per second, maximum. This limit has raised many questions on the scalability and growth of Bitcoin.
Blockchain size issue must be solved before large scale adoption can be seen. Many people have suggested solutions to the problem, but the implementation of the solutions is yet to take place.
5. Security Concerns
Some past events have permanently tainted the image of Bitcoin and the security associated with the use of it. Mt Gox was handling 70% of all transactions in 2013 and in early 2014, it announced Bankruptcy by issuing a statement saying 800,000 BTC were hacked. Although, there are rumors that the Bitcoins might not have been hacked but manipulated by the former CEO, Mark Karpeles.
Resultantly, this whole scandal gained massive publicity and pushed away a lot of people thinking of adopting the new cryptocurrency.
Ideally I believe people should not need to keep their Bitcoins in online wallets. Bitcoin was designed to be decentralized; it has no room for middlemen or companies. People need to educate themselves and keep bitcoins secure in offline wallets or cold storage so that they can avoid hacks and fraud.
However, Security concerns involved with the use of Bitcoins are now being addressed by security experts. More transparent and more secure solutions are being presented, but the feasibility of these solutions will only come to light with time.
For a 6-year-old cryptocurrency, Bitcoin has matured fairly well and some of the above problems will almost automatically disappear with time.
Yet, that cannot be said for all of them. The security and blockchain size issue need to be properly addressed; only by fixing such problems will we see Bitcoin establish the budding prospects, it promises.
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