Bitcoin’s Real Test Has Only Just Begun
The Bitcoin market has faced regulation, technical challenges, internal strife, and wild speculation. Bitcoin has been through many tests: hacks, denial-of-service attacks, wild price fluctuations, and attempted regulatory interventions. Through it all, though, the leading cryptocurrency’s true character has not been revealed—until now. Bitcoin’s real test has only just begun as the Bitcoin network’s ability to withstand a controversial software change known as a hard fork could determine whether the experiment survives or dies.
The media’s opinion of cryptocurrency is continuously growing. Whether you’re an insider or outsider, it’s a safe bet you’ll be hearing more about Bitcoin in the news, on social media, and in the blogosphere. Cryptocurrency is a volatile asset that’s known to fluctuate.
The value of Bitcoin is in a state of constant flux, and thus the currency can be used as a speculative investment in addition to its primary role as a medium of exchange. The volatility could increase due to a lack of supply and demand for Bitcoin. If exchanges don’t suffer theft, the fate of Bitcoin addresses that are lost with no private keys established will remain unknown forever. However, searching for these addresses is not a computational problem but merely one of bandwidth.
Impact of Bitcoin on Economy
The economy of a country is greatly affected by the level of Bitcoin mining. People who mine Bitcoins won’t mine them for themselves, but instead, they will sell them to people looking to purchase Bitcoin. The monetary value of many countries is greatly affected by the value of Bitcoin. This is because Bitcoin tends to be used as an investment currency rather than being used in day-to-day transactions.
The news of a 10% drop in Bitcoin value has drawn attention from the entire crypto market, because some experts have been predicting this event for a long time, but it took quite some time to happen. Blockchain is the technology that contains and drives Bitcoin.
Good About Bitcoin
- Government and banks have little power to stop cryptocurrency from changing the world.
- Inexpensive ways of sending large payments
- Better uses of credit and debit cards
Bad About Bitcoin
- High volatility in prices
- Prices can be very unpredictable
- No central authority for BTC transactions means no legal recourse
The market value of a stock is not based on the value of a company alone, but also on speculation about the future. Just like Bitcoin, the value of a company’s stock is not based solely on its current performance. It can be hard to predict how much a Bitcoin is going to cost in the future, and that’s because governments all over the world are quickly moving to regulate or even outright ban it.
The real test for cryptocurrencies like Bitcoin may be the degree to which they are adopted in the mainstream. The cryptocurrency market is growing extremely quickly. Since cryptocurrencies aren’t regulated by any government body currently, investors will have to rely on consumer confidence and transparency to determine the market’s stability.
