Bitcoin may be the oldest and still the most powerful crypto out there, but there remain many challenges that it needs to overcome. While its popularity and spectacular price surge may have tempted investors and traders, there is much left to be achieved to ensure its mainstream adoption.
Challenges which Bitcoin and its users continue to face today:
- Lack of mobile support: One of the biggest hurdles for Bitcoin users is the lack of support for Bitcoins on mobile platforms. Many businesses have been rallying behind this digital currency but tech companies like Apple or Google have banned Bitcoin wallet applications. When leading businesses do not take part in Bitcoin deals, it can be a problem for Bitcoin users because Bitcoin does offer a faster and more convenient method of payment. Users can engage in money transfers across borders instantly without having to go through banks.
- Slow transactions: Another significant problem for Bitcoin users is the speed of transactions. The network is congested and slow, taking a long time to process transfers. The average time takes for processing a single transaction is about 43 minutes. Transaction fees are steep and those who do not pay this must wait longer for their transfers to happen.
- Costly transactions: Bitcoin transactions have transaction fees attached to them that are high. Higher fees will ensure faster transfers. This is why many businesses are reluctant to accept BTC as payment since transactions can be slow if one does not pay higher transaction fees.
- Bitcoin sports betting: Betting through sites that allow cryptocurrency transactions is becoming highly competitive. To face the competition, the betting sites are offering more crypto bonuses and attractive benefits to catch the attention of bettors and players. The betting sites compete to offer easy transactions, low fees and variety of games to choose. However, the challenging part is choosing the best among them so that you do not lose your investment completely. Visit https://www.safebettingsites.com/ca/ for information on best betting sites Canada.
- Less privacy: Bitcoin users obviously do not enjoy privacy. All transactions are recorded in a public ledger called the blockchain. They can be viewed by one and all, even though identities of parties remain confidential. People had originally out their trust in the Bitcoin because it was supposed to be private and anonymous. Since transactions are not encrypted but hashed, anyone can analyze these.
- Lack of accountability: Only money is used for creating incentives in the Bitcoin system. But research shows that monetary incentives are not usually effective when it comes to ensuring good behavior. It is hard to trust a system where money is used for enforcing behavior. This is why hacks and scams have been common in crypto history. Nearly 20% of the total Bitcoins worth almost $13 billion is not retrievable because people have lost keys.
- Illicit uses: Bitcoins have been used for purchasing illegal drugs and weapons. Since it is has hitherto not been controlled by any government, this has been hard to check, but now nation-states are trying to regulate crypto entry and exit points to stop illicit transactions. But the challenge still remains because it is practically impossible to regulate users unless they want to be regulated. Moreover, any kind of regulation would undermine the basic premise of the Bitcoin.
- Not meant for mainstream adoption: Bitcoin seems to be an option for people who are tech savvy and have an appetite for risks. Instead of making currency accessible for people it may create an even greater inequality. Because majority may not have the means to access the technology.
- Cannot be upgraded: By design the Bitcoin protocol cannot be upgraded easily. Bitcoin mining pools will resort to an upgrade only when the new protocol is more profitable for them. Though there are many credible crypto exchanges and trading bots like Bitiq Roboter in the market, if you fail to find a trustworthy source, you’ll end up facing potential loss. So, pay attention to finding a credible platform to see a great profit in cryptocurrency.
These are key challenges which the crypto and its users face even today and which must be effectively resolved for the Bitcoin to successfully replace fiat currencies.