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Bitcoin Limits. Five Factors that Limits the Growth, of Bitcoin
Bitcoin growth has been fair and steady for the past 6 years, however, due to some limiting factors it has denied it the chance of achieving the highest growth rate. From research and analysis, it is clear that Bitcoin growth is much faster than the internet during its initial stages. The report results prove its growth to be 25 percent faster, which is a good impression. Once the problems have been identified and solutions suggested, bitcoin will surely succeed. The following are the five obstructers;
Bitcoin Limits 1. Poor Image
Poor reputation is a factor that has limited bitcoin. Politicians and those who support the fiat currency are arguing that illegal acts are majorly done by use of digital currency. Actually this is a fact but it does not make the currency illegal, rather the wrongdoers are the transactors. Just as cash money can be used to complete illegal transaction like the sale of drugs, but cash still remain good because cash can be used for other beneficial things. Similarly, the perspective that we give cash money and fiat currencies should apply to bitcoins too. They are all resources that helps us in our daily lives and does no one harm. The adoption of bitcoin will be much easier once people have embraced its benefits rather than the negative side.
Bitcoin Limits 2. Complexity in Understanding the Concept of Bitcoin
The concept of bitcoin is actually hard to easily grasp. The concepts are a bit complex since it is associated with difficult technological concepts and terms. This is one of the factors that has made people to shy away from adopting it, because they only believe that it only belongs to the technical experts. This factor however should not limit people from accessing the bitcoin app. There are a number of websites that are available to help in guiding the first timers. The easiest of way of understanding the concept is by watching the provided bitcoin guide available in YouTube channel. The content in the guide is sufficient to solve all the difficulties one might be having concerning bitcoin.
Bitcoin Limits 3. Instability due to price volatility
In November 2013, the $ 1200 barrier was broken by the cryptocurrency, this incident created awareness of bitcoin to many people. People saw this as business opportunity that could enable them to trade with the currency to earn good money. This attractive idea begun to fade when many people realized that bitcoin was unstable at that moment. The investors too shunned from risking their investment on then unsafe bitcoin. Luckily Bitcoin has regained its stability gradually and the issue of price instability and volatility had reduced. However, even with the regained stability, bitcoin has not yet attained a trustable stability to attract investors. Bitcoin stability will lead to increased number of its acceptance and adoption for regular use as a way of payment.
Bitcoin Limits 4. The Enormous Blockchain Size
The size of blockchain has become a threat to the growth of bitcoin. At the moment, the blockchain business deals with approximately 100,000 transactions daily. In the recent years this number has increased by factor of two, leading to the huge growth curve. At the moment the blockchain business can deal with the highest amount of three business transactions for every second. This is a great problem to the bitcoin technology since the decentralized ledger is growing tremendously. This issue needs to be tackled first hand before graduating to adoption of large scale operations. People have hypothesized on possible solutions to this problem, but actual implementation step has not yet been taken.
Bitcoin Limits 5. Associated Security Concerns
There are some insecure events in the past that are likely to lower the adaptability of bitcoin technology. Mt. Gox was in charge of 70 percent of the 2013 transactions, then it happened that in 2014, bankruptcy issue was filed and announced that 850,000 BTC had mysteriously been lost because of the attacks from external. From online rumors, the former CEO, Mark Karpeles is suspected to have stolen the BTC claimed to have been lost. The scandal went all over in the social media and other platforms, and many people did know about it. As a result of the leaked scandal, the potential people who were ready to adopt the new idea were pushed further away. Due to the decentralized nature of bitcoin technology, the people should be aware of possible hacks and frauds. It is important that people get informed that keeping the digital coins in offline wallets is the safest way. More secure alternatives from security experts have been adopted to counter this issue. It has helped to regain the trust from people, though its feasibility has not been actually proven. Continual improvement of the mentioned issues by applying the best available solutions will surely lower incidences. Security is the main concern for Bitcoin improvement, the technical security experts should be hired to counter the problem. Bitcoin’s full potential can only be realized once all the problems have been tackled.
Next Article: Bitcoin isn’t Safe
January 26 2018
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