The hype of bitcoins is so high now that even the thought of the market collapse can invoke a lot of fear in the investors. However, when it is a financial transaction method, market fluctuation is an obvious thing. In fact, the market of bitcoin became unstable a few years back. Now, again, it is in stable condition, rather the value is rising gradually. Bitcoin is the most popular cryptocurrency in terms of numerous use and most coins available in the market and that makes its price high. There are other cryptocurrency available in the market as well but bitcoin is still at the top of the list.
Before assuming the future, let’s take a tour of why the bitcoin market collapse triggers a sense of worry and anxiety among people:
- Digitalising financial transactions is the best way to secure them from any mishandling or theft. And bitcoin with the unbreakable cryptography and blockchain provides the security. However, there are instances where people have faced problems with the transaction and exchange. This happens because of the improper choice of mediators to make the exchange and lack of concentration for double-checking the address. Bitcoin is nowhere responsible for it.
- The best part of bitcoin code lies in the zero interference of any centralized organization in your financial transaction. No third party can hover over your transactions other than the bitcoin miners who create the blocks to secure each of your transactions with blockchain technology.
- It is extremely fast, more than any other mode of transaction, of course. You can use bitcoin code anywhere and literally anytime. You don’t have to wait for anything to perform the transactions with bitcoin.
- No rocket-science technology is involved in it for the users. A nominal concept of digital technology is enough to handle it.
- Bitcoin is better than any other currencies available in the market and there are valid reasons behind it. If you take a close look you will find out that Bitcoin has very limited coins in the market unlike the fiat currency and this is actually good for the world economy of digital currencies. No particular central organization has a monopoly over it other than US Federal Reserve who can print US Dollars as per their wish. You are free to buy to earn bitcoins from them. It is beneficial to maintain accounts in a secured way and it’s remarkable in trading.
- Many people speculate on Bitcoin futures, and bitcoin is becoming increasingly easier to buy with the bitcoin profit, with major sites such as PayPal allowing buying last year. Analysts for ByteTree this week observed that blockchain estimates indicate a high number of Bitcoin sales of $600 – the same value as those sent in American stimulus tests in the new U.S. emergency assistance program for coronaviruses.
However, the market is never stable for anything. And the chances are high when the financial parts are involved. Bitcoin is no exceptional than this. It has its own set of problems that may create barriers for it to sustain for years after years.
Bitcoin is a modern form of an electronic payment mechanism, created on top of a computing Internet network no one person, firm, or government can regulate, conceived just 12 years ago. The truth is that the exchange history of the Bitcoin blockchain is too limited, and with techniques for assessing the commodity that nobody knows for sure whether it could be worth it now or in the future.
People are running Ponzi Schemes and MLMs because of the widespread illiteracy, lack of adequate knowledge, and distorted information. Digital privacy is still not considered a serious thing. And in the case of loosely-bound security, chances are high that owners can lose bitcoins with cyber theft. Bitcoins can be misused by dark transactions and also ransomware. This is why many people fail to have faith in it. You must have heard of money laundering. Needless to say, that this is illegal. Bitcoins for not having any authority to monitor its transaction is often used for money laundering.
Even after this comprehensive study of the advantages of Bitcoin and the loophole it has, it is hard to predict its future effect on the global economy. Before 10 to 15 years of usage, we can’t be sure of the future of bitcoin. IT may collapse, it may sustain. Let’s hope for the best.