Why Bitcoin became unsuccessful?
One of the famous types of electronic money is bitcoin which is mainly a cryptocurrency and a decentralized digital currency that do not have any intermediaries involved and can be sent from one peer to another peer and from one user to another through the bitcoin network and without any single administrator or central bank. The blockchain is where the transactions are recorded and is a ledger that is distributed publicly. In addition, through cryptography, the verification of transactions is performed through cryptography. Satoshi Nakamoto appears to be the founding name behind bitcoin who in 2009 released it as open-source software.
One of the key procedures involved is mining for which the bitcoins are provided as the reward and can be exchanged for other services, products, and currencies. In 2017, bitcoin was found to be used by around 5.8 million users. However, its critics have highlighted its usage in illegitimate transactions. Economic bubbles have been found to be created by it, and it has been blamed for the thefts resulted from its exchanges, price volatility, and high consumption of electricity.
Bitcoin is not achieving significant success as far as the digital currency revolution is escalating. Bitcoin has been found to be in a lull. Relatively stagnant value has been experienced by the crypto currency for the past several months. In 2016, both the total value of the transaction and the number of transactions did not increase. Moreover, over the last previous years, meaningful growth has also not been experienced by the search terms of Google of Bitcoin. In addition, market momentum and share both are being lost by the ecosystem of bitcoin.
Along with this, in the ecosystem of Bitcoin, the speed of investment has also experienced slow growth. The key reason behind it is because Bitcoin has failed to acquire a huge amount of share of financial transactions. Although, its main objective was to offer a platform where electronic cash can be forwarded user to user without any involvement of a financial organization. Along with this, various attributes of the Bitcoin are unique indeed, and value to the throughout system can be added by them. However, it lacks to replace other components.
In addition, one of the biggest reason behind its successfulness is the hurdle of ease-of-use. As for most of the consumers, digital currency is quite difficult to digest and to understand. One of the major roles played here is by the trust factor. Trusting the huge amount of exchange hacks and dark markets is not easy for consumers. Moreover, digital currency such as Bitcoin is also a new type of currency that is only majorly accepted by young individuals as they are habitual to those concepts in video games.
Besides, bitcoin has been majorly criticized by the Bank of International Settlements in this year 2018. The criticism involved the impact of minors, vulnerability to debasement, the fraud, and poor security at the crypto currency exchanges, the variable and high costs of transactions, the high energy consumptions, and the lack of stability with respect to the price of bitcoin. These factors typically have played a huge role in bitcoin’s lack of success. Although these criticisms have also been regarded as unfair by some of the people, due to the extravagant abilities of the technology of blockchain. Also because with the passage of time, the volatility of bitcoin is changing.