What is the future of Bitcoin and what’s holding it back ?

Bitcoin has made immense strides in establishing the importance of blockchain by bringing along tremendous economic growth and progress, however I think the future of Bitcoin is a little short lived.

There were indeed times when Bitcoin could’ve been considered a long term investment for having a limited cap of 21 Million Bitcoin. After due consideration, I express my doubts on the longevity of Bitcoin becoming a long term day traded common man’s currency.

Here’s why:

• Bitcoin is has a cap of 21 Million. It isn’t scalable beyond that.
  Bitcoin as a currency will never be a sum of 21 Million.
  lim(x)→21000000 f(x) where f(x) = [(1/2)x]^-4
  Bitcoin’s worth in fiat currency will soon be similar to Berkshire Hathaway’s stock price. Each Too big to buy, stake too little to make a difference.
• Incentivization through block rewards will eventually cease once all the bitcoins are mined. Transaction fees alone are a crippled way of supporting the economy that’s holding out for future gains.
• Lack of support; Lack of a centralized source implies that people promote on their time and dime which makes the whole concept of Bitcoin fickle and diverse.
• No centralized source; Devoid of a source to enforce responsibility.
• No regulations.
• Similar to a pyramid Scheme. People that join early reap higher rewards than the rest that join later on.
• Limited jurisdiction. If you don’t own bitcoin or mine, you cannot exercise your vote during consensus.
• Illegitimate value being generated. Value cannot back the currency.
• Very slight economic incentive to a common man.
• Bitcoin is open source, public and all that good stuff, but name a person that can help you get your private key back once you lose it. Responsibility is innately a handicapped entity by ensuring that independent people must take responsibility.
• There are numerous of burnt coins already.
  Alternative currencies that Burn Bitcoin to add value to their currency.
  Coins burnt by sending to a non existing address (Human Error)
• Bitcoin that are rendered unusable after the death of a person for their bitcoin cannot be spent. Bitcoin shall be considered burnt if they cannot be spent. Bitcoin ownership is limited to one, two or tops three generations.
• There is a little speculation as to when the last block would be mined.
  Whenever it is mined, there are numerous chances of the Bitcoin being crippled due to the fact that miners aren’t incentivized enough.
• The Mining difficulty will become harder and harder which results in an oligopoly over who can profitably mine.
• A Hard Fork due to a multitude of reasons.
• Increase in Mining Difficulty but decreasing the rewards isn’t sustainable in the long run.
• Consensus isn’t an easy process. There isn’t an option of a supreme qualified senate.
• Consensus may not be the best idea after all(read: brexit)
• Expertise isn’t reciprocated or rewarded by consensus.

Despite all the above reasons because of why I personally don’t think Bitcoin is a long term solution, I must commend the expertise and intricacy wielded in making a decentralized finance based use case a reality.
Whoever architected this whole structure has my sincere respect and gratitude.

As an economist, It becomes my responsibility to evaluate the reasons as to why and how each scenario might play out.
Do feel free to correct me if there has been a mistake (the math part).

Bitcoin at the moment is growing and we’re still early adopters.
I can only imagine what the future holds if not work towards it being better.

Bitcoin as a currency is doing well so far and I hope it continues to do well, but the above listed are some of the reasons why I do not think Bitcoin is a long term solution or as a complete replacement to all our problems, however it has opened up ways to numerous technological advancements for which I shall remain indebted to .

Original Question: “What is the future of Bitcoin ?”

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