After 10 Years, Still, Bitcoin Is In Shadows. What Went Wrong?
Check out our new platform: https://thecapital.io/
Bitcoin as all know is a cryptocurrency which came to the public domain almost 10 years earlier, a marvel of its kind is still today in the shadows, not widely popular and accepted as other payment mediums. Even E-wallets which came later for use has surpassed far ahead but not Bitcoin.
That's why we look into factors why Bitcoin has not achieved the traction it should.
They are enumerated below:
- The problem of Bitcoin Scalability
This is one of the biggest and most serious problems faced by Bitcoin users. Bitcoin scalability problem refers to the limited rate in which transactions of Bitcoin payment platform are processed. The transaction records, better known as the Blocks, are very limited in size and frequency. So, due to this, nearly three transactions can be processed per second. This limits the functionality of the Bitcoin users, who have to undergo transaction confirmation delays every now and then. There are many proposals for Bitcoin scalability problem, but there are no working solutions for the Bitcoin Scalability for now.
- Costs of Bitcoin Transactions — High Fees
The costs of sending Bitcoin from one to another have risen significantly in the previous years. In the month of August, the fee for the transaction of Bitcoin cryptocurrency had climbed higher. The price of the Bitcoins Transactions had soared by 547%, rising from the $1 to $6.47 at peak times.
- Block Time Issues
Bitcoin users are challenged by block time issues. In the context of the cryptocurrency, the block time refers to the length of time it takes to establish and validate the existence of the new block on the platform. Theoretically, the block time of the Bitcoin Blockchain is ten minutes. However, the reality of the block time is not as precise. Sometimes it takes 40-minute Block time.
The precise time of mining the Blockchain is difficult and unknown, as the amount of time a block generation takes depends on the difficulty of the hash. Another issue of the block time is that a block is only verified by the Bitcoin miners. The Bitcoin miners compete against each other by solving a mathematical problem.
After combating other a great many block time issues, the successful Bitcoin miner is rewarded the cryptocurrency. The process is complicated and complex, which fatigue the users. It has been a decade since the inception of Bitcoin, but problems and issues of block time had increased instead of decreasing.
- The volatility of Bitcoin
Bitcoin is a high volatile digital currency. For instance, if someone set aside the $1,000 for spending it on a trip to Italy and save it in the Bitcoin wallet, the value of the $1,000 can either increase significantly or drop considerably below.
In 2010, if the value of Bitcoin was worth $10, it rose significantly within two years in 2012. The high volatility of the cryptocurrency has not helped in fueling the popularity of Bitcoin. In order to achieve mainstream popularity, the Bitcoin price needs to become more stable which kinda is not possible.
- Convenient of Usage of Bitcoin
To be honest, the ease of usage of the Bitcoin cryptocurrency had increased considerably since the last few years. However, the interface and rules of the platform are not user-friendly. For instance, if an average user would like to buy the $200 in the Bitcoin, the user needs to open a Bitcoin account and then link the account to the checking account. The checking account has higher fees, and users have to wait several days for clearing the transactions.
All said and done, the processing of the Bitcoin transaction is not an easy affair. Users go through different stages; only then one transaction is completed. This has discouraged users from using the platform of Bitcoin for investment purposes.
Bottom Line
The bottom line is that the general concept of the cryptocurrency and Bitcoin is in its infancy. There are many problems attached to the functionality of the network before it receives mainstream acceptance by users. It is also very important to note that this is not an exhaustive list of factors limiting the usage of the cryptocurrency network. There are many other challenges faced by the network, which affect the functionality of the network and the productivity of the users. For instance, there always remains a lingering threat from the governments that could render the usage of Bitcoin as illegal.
However, most of the problems of the Bitcoin network can be conveniently resolved in the future and settled. So, you must be aware that there is a great time left before you could encounter a group of people paying Bitcoins in a nearby shop.
