With the evolution of Bitcoin, cryptocurrencies have become popular all around the world. While it was previously associated with nefarious activities since it is not traceable, with wider adoption of Bitcoin by companies like PayPal and Subway, people have started to adopt such a positive opinion about Bitcoin. Besides its negative evaluation by laymen, Bitcoin was also considered difficult to get one’s hand on. Since Bitcoin mining is not an easy task people could hardly find Bitcoin or make transactions in them.
However, this notion has changed widely because not only is bitcoin very easily available on the internet but also has been adopted in various places which makes it easy to make transactions with them. However, there are still concerns about whether Bitcoin or cryptocurrencies, in general, will be the currency of the future replacing fiat currency.
Adopting Bitcoins in the Future
People who are interested in making Bitcoin more popular in the future and hopeful about its adoption believe that with the use of cryptocurrency Fiat currency may be replaced to a considerable extent. Since Bitcoin is becoming more accessible in the present day and age people are becoming more hopeful about its wider adoption.
When Elon Musk, a popular entrepreneur shared his positive attitude about cryptocurrency, it automatically raised the value of Bitcoin. However, the most pertinent problem with Bitcoin is that the value of Bitcoin varies constantly and predictions cannot generally be made about the nature of its flow.
Although Bitcoin is being adopted more publicly than before there are still many who are doubtful or have a negative attitude about cryptocurrencies in general. This is the reason further adoption of Bitcoin or cryptocurrencies faces a critical problem in the future.
Technological Problems in Adopting Bitcoin
Any transaction that is made with Bitcoin is recorded in a permanent file which is called blocks that together form the blockchain network. Essentially the Bitcoin chain is maintained by blockchain technology which acts as a public ledger and is secured by a peer-to-peer verification system.
This means that the entire blockchain network is dependent on technology and is completely maintained by this public database. This is no problem in more developed countries, but the adoption of Bitcoins in third world countries becomes difficult especially for those who are not exposed to the technology that is required in the maintenance of the Bitcoin chain.
The majority of individuals belonging to older generations are neither exposed to such technological advances nor can bridge the gap in learning. This is a pertinent technological problem that comes in the way of the application of Bitcoin in the future.
Constant Fluctuations in Value
As a mode of transaction, any currency should be able to act as a medium of transaction and hold its value. There is no denying that cryptocurrencies like Bitcoin can be used as a successful medium of transaction, however, because it continuously fluctuates in value without many ways of predicting its trend, Bitcoin can not necessarily hold its value.
While it is true that even Fiat currencies also fluctuate in value from time to time, Bitcoin is extremely volatile in comparison to these currencies. Both positive, as well as negative events, play a very important role in varying the value of Bitcoin without any way of knowing. This makes it unfit for large scale transactions and wide-scale adoption all around the globe.
While it is true that the unregulated nature of Bitcoin is what made it so popular in the first place, people worry that without any regulation from a third party, adopting a currency like Bitcoin can be too risky.
Conclusion:
However those who are hopeful believe that the use of Bitcoin is extremely safe and can provide much more freedom in transactions, many do not agree with this point of view. However, Bitcoin is a great investment in the present economy. If you want to invest in Bitcoin get started with digital currency now!
