The biggest problem of Bitcoin is the attempts of the state to legalize the cryptocurrency
Bitcoin is a virtual payment system that does not require banks to exist. Each participant of this system can independently dispose of their virtual funds. You can easily make a payment by sending money anywhere in the world. Cryptocurrency can pay for almost everything: food, real estate, clothing, entertainment and various services. In addition, having a few coins in your wallet, you can go on a trip. And that’s not all.
Bitcoin can make good money, and if necessary, even take a loan. However, bitcoin has problems, and they prevent it from getting world distribution. At the present moment, virtual coins are not a currency for every person. It is very difficult for ordinary people to understand the essence of this system. The big problem with Bitcoin is that not all people are willing to pay with This currency. Sooner or later, the state will begin to fight with cryptocurrency. For example, to control the exchange of bitcoins for real currencies, and Vice versa.
The biggest problem of Bitcoin is the attempts of The state to legalize the cryptocurrency. This is very dangerous, because the result will be a legitimate system that will monitor all transactions. Its only advantage will be quick payments. However, despite all this, virtual coins can not be confiscated or banned. And most importantly, while real money systems have shortcomings, virtual payments will rapidly gain popularity. The desire of States to legalize bitcoin will not lead to anything good. Of course, the idea itself is good, but it is directed in the wrong direction. Legalized currency will attract more users. But at the same time it will acquire and many shortcomings, from which and try to escape the usual users of funds.
It’s not about the concern
The bitcoin currency, the problems of which concern an increasing number of users of the system, to continue its existence does not necessarily have to become legal. The main problem is the reporting of enterprises that are happy to try to hide the level of their income. The company can not legally be calculated bitcoins, as the report of such operations is very difficult to make. This problem will be solved if cryptocurrencies become part of the reporting. Mass distribution of bitcoins is also hampered by the law of sin. He says that sooner or later some monetary units replace others. Bitcoin began its promotion in illegal markets, and is distributed on the price grid of real currencies. The continuation of this process is hampered by the law of sin, because bad money displaces good. People do not pay with cryptocurrency, but hold it until the exchange rate changes.
This is the natural behavior of people, which can change only if you create all the conditions for the convenient use of bitcoins. What is the positive point Cryptocurrencies are a recent trend. But many residents of the Republic have not yet decided what to consider — a “soap bubble”, or still something interesting for investment. However, there is no unity about the essence and future of cryptocurrencies not only among ordinary citizens, but also among experts. Many of them believe that the current crypto money is only a prototype of those payments electronic means that will appear in the future. The difference between what is observed in the cryptocurrency market now and how the situation can change in 10–15 years is the same as the difference between the first computer and the current numerous gadgets. Despite the ambiguity of cryptocurrencies, you should not wait 10–15 years to earn them. You can try to profit from this risky new financial instrument now.
The worst scenario
For almost a month with enviable regularity appear alarming for bitcoin news. The latest news is based on market rumors that cryptocurrency trading can be banned in South Korea, and Chinese authorities can ban bitcoin mining. Against this background, there are interesting movements in the cryptocurrency market. Bitcoin suspended growth, new promising “stars” appeared on the cryptocurrency horizon (IOTA, Stellar, Tron), the struggle for the status of the second cryptocurrency intensified. At the end of 2017, Ripple took the second place in terms of capitalization. But this state of Affairs did not suit Etherium (its advantages — the presence of smart contracts and an open platform) — it quickly regained the status of “the first after bitcoin”. This was facilitated by the launch of the alpha version of Casper, thanks to which the ether can quickly switch to the Proof-of-Stake mode. In addition, Vitalik Buterin proposed a decentralized model of ICO, which has already attracted the attention of investors from around the world. In our opinion, the struggle for the second place among cryptocurrencies will continue in the future.
Concerns and pros
The main contenders are Ripple, Etherium, Bitcoin Cash. In my opinion, their main feature in comparison with bitcoin is doubts of market participants in their decentralization. A significant share of Ripple belongs to the company of the same name, and Vitalik Buterin and Roger Ver have the opportunity to make adjustments to the development of ether technologies and bitcoin cache, respectively. Unlike ripple, the history of these cryptocurrencies is closely related to bitcoin Buterin and Ver own a noticeable amount of bitcoins. Theoretically, they can influence the course of trading in cryptocurrencies and maintain the exchange rates of ether and bitcoin cache by purchasing these coins for bitcoins (whether they use this opportunity is unknown — transactions are anonymous).
Conclusion
Note that the mentioned cryptocurrencies significantly benefit from bitcoin in the speed and time of transactions. Nevertheless, bitcoin continues to firmly hold the status of the main cryptocurrency. In its favor is the recognition of a wide range of investors and a large number of transactions have already been carried out — the infrastructure of the region. The first place bitcoin can not shake even the unresolved problem of scalability. Despite the fact that virtual currencies have many problems, they are actively used by people in everyday life. After all, they can pay for almost everything.
