Cryptocurrencies have been ruling the financial arena ever since the world met its first virtual currency in the form of Bitcoin in 2009. Introduced by Satoshi Nakamoto, Bitcoin entered the space as an efficient, innovative, and advanced application designed to streamline the processes involved in settlement of payments while working as a substitute for the traditional payment systems. The new-age concept received a mixed reaction from the industry as it was for the first time that people were experiencing money in a virtual form. Contrary to the early beliefs, cryptocurrencies soon strengthened their position in the market and evolved as one of the most trusted pedagogies for settlement of transactions worldwide.
What grabbed the attention of the people in the first place was the core technology, blockchain, on which the entire network of Bitcoin was designed. Blockchain is an amazing technology in which transactions are executed, validated, and stored in a distributed ledger network which offers the highest standards of security, transparency, and immutability for the participants. All the computers working on the blockchain are referred to as nodes, and the transactions are entered in multiple blocks that are connected to each other cryptographically. The transactions entered in a blockchain are timestamped to avoid manipulation and alteration.
Bitcoin became a rage in no time as it opened doors for a system that was quick, safe, and economical in comparison to the existing ways and means. Business entities, governments, organizations, and individuals from around the world started investing their hard-earned cash into Bitcoin. The virtual currency earned the trust and support from every corner of the world, with the biggest names of the industrial domains launching potential solutions and products centered around Bitcoin. Today, Bitcoin is widely used as a payment settlement interface in various industries, including finance, education, healthcare, sports, tourism, and many more.
Despite the immense popularity of Bitcoin and other virtual currencies, the sector still has to travel a long way to become a mainstream solution for investors across the globe. Given below are some of the prominent reasons for limited Bitcoin usage, have a look:
- High volatility
Cryptocurrencies are highly dynamic and volatile in nature. The price fluctuations are so intense and sudden that they might vary on an hourly basis. Bitcoin has up until now faced its share of ups and downs with price touching skies and facing downs in a loop. This uncertainty of value often restrains a majority of investors from adopting cryptocurrencies.
- Less acceptance
As virtual currencies are comparatively new to the market, they have not become a go-to solution for a huge group of the global population. Business entities, small traders, shops, etc. avoid relying on Bitcoin and other cryptocurrencies for settlement of trades and acceptance of payments. Owing to this, the mass adoption of cryptocurrencies has still not been possible. Also, countries like India have failed to accept cryptocurrencies overwhelmingly and have restricted any such activities.
- Regulatory Uncertainty
Financial watchdogs and regulatory organizations from around the world have been striving to draft out guidelines and regulations for the operations of cryptocurrencies as well as crypto exchanges. However, the industry still faces a lack of a legal regulatory channel, which in turn restricts investors from making investments.
- Limited Scalability
One of the prime reasons for the reduced Bitcoin adoption is the limited scalability offered by the network. The Bitcoin blockchain executes a 1MB block of transactions every 10 minutes, which helps in preventing fraudulent activities. Bitcoin manages seven transactions per second, which is very small in comparison to other payment networks like Visa, which operate thousands of transactions every second.
- Lack of knowledge
Bitcoin can never become mainstream unless people understand its core technology and methodology. Lack of proper knowledge about cryptocurrencies lays a foundation for speculations which end up creating doubts and misconceptions in the minds of people. It becomes of utmost importance to be well-aware of the management of crypto wallets, private keys, and execution of transactions on the blockchain network before investing in Bitcoin.
About Bitcoin Trading
With the growing popularity of cryptocurrencies, trading in them has become a hot-shot solution for investors willing to earn lucrative profits. The trading allows investors to earn lucrative profits for beginners as well as experienced traders. Just like any other financial instrument, cryptocurrency lovers can immerse themselves in Bitcoin trading through the wide range of crypto exchanges that offer the revolutionary tools and services for the customers. Also, the market is flooded with an array of software applications that help traders in getting extra profits through their investments.
One such name is btc-revolution.org, which renders traders with the necessary tools to enjoy hassle-free trading. The seamless interface offered by the software allows customers to deal with the top-rated cryptocurrencies at their convenience at any time and from any place.
Cryptocurrencies are evolving as a revolutionary, highly efficient, and secured payment settlement mechanism in the global industrial domain. The use of blockchain technology has strengthened the hold of virtual currencies in the market. With business and organizations jumping into the crypto arena, the industry is likely to become mainstream in the new decade.