Are there any challenges ahead in the future of Bitcoins?
With the advent of digital technologies worldwide, people got interested in the use of digital currency, which led to the invention of cryptocurrencies like Bitcoins. The foundation of bitcoin was laid in the year 2009, and since then, digital currency has gone through different changes. People all over the world began to use bitcoins, and many governments, as well as big businesses like Microsoft, favoured the use of Bitcoins.
Bitcoin has travelled a glorious path in the last decade. But, still, people and economists find that bitcoin still has to face certain challenges. You can get more information about bitcoins at www.yuan-paygroup.com.
In this article, we will try to understand what are the major challenges ahead for bitcoins.
Table of Contents
The volatility challenges
Bitcoin has been one of the most volatile cryptocurrencies ever since its beginning. The major challenge associated with bitcoin is that the volatility won’t be reduced in the upcoming days and months. Bitcoin is growing in popularity all these years. People are hoarding bitcoins in large numbers, and thus, there is a probability that the price of the bitcoin will rise further. There is a lot of risks associated with bitcoin, and no one has any idea about tackling the risk. Gradually, as businesses and the government will accept the use of bitcoin, the volatility will reduce. But, right now, there is a risk associated with bitcoin, and no one knows exactly how these risks can be eliminated.
The challenge of usage
In the last few years, purchase, sales as well as investment in Bitcoins has become quite easy. But, still, you can’t call it a user-friendly currency. To date, bitcoin has not achieved the status of mainstream adoption. If you want to make an investment in bitcoins, you will have to take the risk because not businesses are accepting the payment in bitcoins. For the complete adoption of o0f bitcoins, it is important for everyone to be tech-savvy. Thus, the challenge of mainstream usage of bitcoin is one of the biggest challenges, and you need to take care of that.
The challenge of acceptance
No doubt, digital currencies are quite popular these days. But, it is;y popular among people who are a part of the digital revolution. Millennials are making payments in bitcoins, and they are also making huge investments in bitcoins, but still, it has neither received mass acceptance from people. Bitcoin has not achieved the status of other currencies like Dollars and Yen. Thus, the lack of acceptance is one of the issues and challenges associated with Bitcoin at present.
The challenge of theft
No doubt, digital wallets keep bitcoins safe. But this does not mean that it can’t get stolen. People these days get worried about the security issue associated with bitcoin. Until proper cybersecurity laws are not in place, people will have to face the security challenges associated with bitcoins.
Challenge of Reputation
No doubt, many businesses and people are making an investment in Bitcoins. But, still, bitcoins have not garnered the attention and reputation that traditional currencies have. People in many countries like India and Bangladesh still do not accept payment in Bitcoin. People still fear that their investment may be duped. Thus, until proper advertisement, marketing, and encouragement is provided by bitcoin, it can be quite difficult for the digital currency to get the reputation it deserves.
Issues related to taxes
Many governments around the world treat bitcoins as a tangible asset. Thus, bitcoins are subject to capital gains tax in many countries. If you purchase a few bitcoins and sell them at a higher profit, you may have to pay capital gains to the authorities. Thus, still, the tax-related issues are not clear with regard to bitcoin, and people are yet not sure about these issues.
Will these challenges get solved?
The real truth is that yes, these issues can be solved, but it will take time for laymen to accept bitcoins. Within a decade, the bitcoin will also accept status as all other currencies present in the world. Thus, we will have to wait and watch till bitcoin can get the needed status and reputation. If you are thinking about making an investment in Bitcoins, you have to decide for yourself about all these challenges.