Our discourse in this piece of informative writing today is to disclose Why Bitcoin is Struggling to become a Mainstream Currency. Despite the fact that bitcoins have been around for over a decade now yet many users of this cryptocurrency still wonder why it is yet to go mainstream. Well, there are several reasons causing bitcoin yet to go mainstream some of which we will highlight in this article. To learn the reasons, ensure you read through this article to the end without skipping a paragraph.
WHY BITCOIN IS STRUGGLING TO BECOME A MAINSTREAM CURRENCY
The truth is bitcoin has a large landmine to cover before it can successfully be recognized as a mainstream currency. Nonetheless, the number of bitcoin users continually increase yearly as well as its popularity and many businesses and countries are beginning to recognize it as a legal currency that can be used to transact business. Despite this positive review, this cryptocurrency still faces setbacks with lots of inherent challenges, technical and legal issues to overcome before it become a method of payment and a major currency.
Without further ado, we will highlight some of the reasons below Why Bitcoin is Struggling to Become a Mainstream Currency.
- Bitcoin Price Is Volatile
- Bitcoin transactions are expensive and slow
- Bitcoin has user experience issues
- The origin of Bitcoin formed big expectation
- Bitcoin has lots of legal issues
- Bitcoin future is uncertain
- Bitcoin security issues
- Regulatory uncertainty
- Poor knowledge of bitcoin
- #1. Bitcoin Price Is Volatile
Bitcoin’s volatility is one of the major reasons why Bitcoin still finds it hard to become a mainstream currency. The violent fluctuations of bitcoin price make it unsuitable for every day transaction and that is why only a handful of businesses accept it as a method of payment. As such, because of its volatility, the volatility there is a little use for bitcoin in the real-life applications.
- #2. Bitcoin Transactions are Expensive and Slow
Talking about affordability, bitcoin seems to be far from that as its transactions are quite expensive. Accompanying its expensive transaction is the sluggish nature of generating bitcoin, very slow.
Bitcoin transaction fees is estimated to reach $50 which makes payments inefficient for small purchases (imagine purchasing an item of $5 and charged $50 transaction fee).
As you know, Bitcoin blockchain, a shared public ledger on which the entire Bitcoin network relies generates in every 10 minutes, 1MB block of new transactions. This is a setback believed to have been created intentionally in order to prevent attacks on the network. Despite the good intentions, it is also a limitation inhibiting the number of transactions the network can process.
As of the time we were compiling this article, Bitcoin can only handle seven transactions per second, which is far below the high number of transactions that other payment networks can process. Also, the increase in Bitcoin’s popularity is another factor causing its lagging transaction processes because the network continues to experience difficulty to keep up with the demand, and sometimes it becomes overloaded with unhandled transactions causing users to wait hours and sometimes days before their payments were processed.
- #3. Bitcoin has User Experience Issues
Another reason Why Bitcoin is Struggling to Become a Mainstream Currency, is the flaws in user experience. Bitcoin regulators need to understand that people care about suitability and usability. Beginners find it tasking to get around bitcoin system alone. Users need to download bitcoin wallet, and if need be synchronization the wallet to the current blockchain status before validating any transaction. Users are expected to know how to handle both public and private cryptographic keys, bits of data that enable their owners to send and receive payments on Bitcoin addresses. You need to keep your private key because if you lose your private keys, or if it is stolen, there’s no way you can recover your funds.
- #4. The origin of Bitcoin Formed big Expectation
When Bitcoin came to being, it gave birth to big expectation. The cryptocurrency uses blockchain through which users store and exchange data without the intervention of a third-party service. Again, Bitcoin enabled peer-to-peer payments across the world for easy transaction. Bitcoin was launched in 2008, the year which many banks and financial institutions collapsed due to financial meltdown at that time. With the financial issues at that time, it was easy for people to see Bitcoin as a solution to the woes of the world economy. However, the high optimism for Bitcoin as at then seems to vanish 10 years after when the economy bounced back with banks and financial institutions doing better than they used to.
- #5. Bitcoin has Lots of Legal Issues
Bitcoin has a lot of legal issues and that is one of the major reasons Why Bitcoin is Struggling to Become a Mainstream Currency. Governments of many nations are reluctant to approve a bitcoin because it is to an extent beyond their control. Legal issues add to the reasons why bitcoins are yet to become a mainstream currency for investors and businesses interested to use this currency for transactional purposes. Legal issues are undoubtedly one of the issues Bitcoin’s adoption as a mainstream currency.
- #6. Bitcoin Future is Uncertain
The uncertainty of bitcoin future is also one of the reasons why making it a mainstream currency is difficult. However, many users still believe that the future of cryptocurrency amidst all these challenges is bright. Interestingly, many businesses and investors that shunned bitcoin for from inception are now welcoming the idea and incorporating it as a means of payment that customers can use in their organizations. in order to improve the quality of experience using bitcoins, engineers and developers are taking measures to fix the system and at the same time add features that will improve user experience. Overall, as long as bitcoin is functional with miners getting incentives and quality of service improved, there is definitely a bright future for bitcoins and may eventually achieve its aim of becoming a mainstream currency.
- #7. Bitcoin security issues
The security issues that surround bitcoin cryptocurrency cannot be undermined. It is sad that cryptocurrency is faced with scams, hackers, and internet fraudsters, whatever you want to call them causing many bitcoins users to lose their virtual money. It breaks the heart of many individuals whether existing or intending users when they read about the high risk of cyber crime facing bitcoins and other cryptocurrency becoming a cause of concern and one of the setbacks hindering bitcoin from attaining its aim of mainstream currency. However, the authorities and personnel involved are putting all hands-on deck to foster bitcoin security by improving security measures that will help protect the system.
- #8. Regulatory Uncertainty
One of the things that promote orderliness in the society and its constituents is law and order and that is one of the things that the cryptocurrency world lacks or yet to fully attain. Lack of regulatory guidelines makes it difficult for governing bodies to get involved in cryptocurrency matters. Presently, most cryptocurrencies make use of unclear rules and best practices. This is no doubt a major factor why many persons stay clear off bitcoins.
- #9. Poor Knowledge of Bitcoin
In order to make the most out of something, one needs to be well knowledgeable about it. Most bitcoins users have poor knowledge of this cryptocurrency and are not properly educated meaning that many people do not fully understand bitcoin. Even though there have been initiatives to produce simpler guidelines and handbook that will help bitcoin users, the truth still remain most people still don’t get it. For this reason, many persons decided to stay clear from what they have no clue about and seems confusing and stick to what they know.
Conclusion on Why Bitcoin is Struggling to Become a Mainstream Currency
I believe you have learnt something new or added knowledge about Why Bitcoin is Struggling to Become a Mainstream Currency. The truth remains, majority of world population still have not fully grasp what bitcoin is and how to use it in line with other reasons why this cryptocurrency keeps struggling to become a mainstream currency. Anyway, these shouldn’t hinder you from making investing or transacting business with it. Let us know what you think about this article and how helpful you find it to be by giving us a feedback.
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