Bitcoin Not Worth Investing in Anymore: True or False?
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Today, like a few years ago, people start thinking about whether Bitcoin was worth investing in. In the past, there was uncertainty about Bitcoin’s future and how it would develop over time. Uncertainty in its price, government prohibitions and regulations, all these factors made Bitcoin a rather risky asset. However, today new challenges arise against the Bitcoin network. Here we are going to discuss the most possible and objective of them and then try to understand how the network can respond to these issues.
Bitcoin is definitely a phenomenon in the finance world and for IT as well. Blockchain technology which was used for Bitcoin has become popular even among banks and financial services. They admit to advantages in this technology and are looking for a chance to adapt their businesses to new world conditions. Big companies and banks with thousands of employees and hundreds of millions worth of money, have a better chance to analyse and implement the latest technologies and inventions to become more competitive and efficient. Today, these companies are trying to defeat the main problem of big corporations which is conservatism or even a kind of stiffness. Some say that they have almost succeeded. Well, what do experts in the finance market think about this?
There are many different opinions and views on Bitcoins future. One says Bitcoin is not an investment at all and you can not invest money in this cryptocurrency. In this opinion, trading with Bitcoin seems to be a kind of speculation but not investment. The difference is very important because when people buy coins they mostly want to sell them afterwards for a higher price. On the other hand, investment is buying a part of a business and that’s the main difference between speculation with Bitcoins and investment in stocks. Moreove,r they say your Bitcoins are in danger of being stolen by hackers or lost due to software troubles. The last big fail of Mt. Gox before bankruptcy was losing more than 850,000 coins. When you store your money in a bank they are insured. You can not lose them due to a bank robbery because it is bank’s problem, while losing Bitcoins at an online exchange due to a shutdown or hacker attack, is your problem first of all. Another idea which has become quite common today is mining. Today, you simply can not start mining for yourself and gain a profit. Current hashrates are so high that your computer will hardly make a single Bitcoin at all.
Risks of Bitcoin Future
Today, we can not exactly say how the Bitcoin network and currency itself will develop over the next few years. Bitcoins price can fall or rise significantly. Both of these are risks but the bigger problem for Bitcoin is its price fluctuation. The fact that Bitcoin can simply drop down to its 2009 prices prevents big corporations from using the cryptocurrency. Instead of that, they try to adopt and use blockchain technology in order to make their own solutions to reduce transactional costs. And this is very important for Bitcoin’s future. Big companies should be convinced that Bitcoin is a reliable and stable currency and there is no reason to not invest their money on the development of new blockchain-like technologies.
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Another big problem for Bitcoin is mining. Here we can not say for sure how fast miners will produce all the Bitcoins available for the network. Experts say that according to the current hashrate — and its growing, the last Bitcoin will be mined in 2140. Wel, we do not exactly how the computing industry will develop over the next few years or decades. For example, it is possible that in the near future quantum computing becomes a reality which will make the increasing hashrate problem a thing of the past. A potential quantum computer would be able to prove all transactions in a blink of an eye without any remarkable energy consumption. Though it seems to be too futuristic but Google recently that they had managed to shift the progress in their research of quantum computing. Such an invention would probably significantly change the whole industry of the network.
Does this mean that Bitcoin is completely not worth invested in? Of course not. Bitcoin is a phenomenon which has already changed the finance world.
Though there are a lot of issues and problems that need to be solved in the future, we can not say for sure that Bitcoin will fade away. Probably, the network will manage to adapt to new circumstances, to overcome all the troubles and become a real world spreader of currency for everyone on the planet.
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