Like most new technologies, Bitcoin must go through several strides to gain global acceptance. Satoshi Nakamoto coined the Bitcoin concept in 2009 as a shared and open transactional database. What set Bitcoin apart was that people could prove and transfer digital asset ownership without an intermediary. If you are interested in Bitcoin trading, you may consider using a reliable trading software like Immediate Edge.
Platforms emerged to help people and organizations trade this crypto asset. And this cryptocurrency has several benefits besides being global. Several stores accept Bitcoin payments. However, some institutions still do not take Bitcoin payments. So, what hinders Bitcoin’s worldwide acceptance? Here are possible reasons for the slow Bitcoin adoption.
Possible Reasons for the Slow Bitcoin Adoption
Volatility
Almost every currency fluctuates over time. However, Bitcoin can fluctuate dramatically, meaning you can gain or lose a significant amount of money between the purchase and sale. And this prevents some individuals and organizations from accepting Bitcoin payments. You can lose thousands or hundreds of dollars or Euros when you receive a Bitcoin payment and then decide to convert it into fiat money. Hence, dealing with volatility could enhance Bitcoin’s acceptance or adoption.
Association with Criminal Activities
Bad news headlines and the media have published stories of crypto exchange hacking and investors losing money through crypto investments. Some crypto exchanges lack insurance policies to protect investors in case of hacking. That means you can have funds in your crypto exchange account one day and have nothing the next day. Also, ICO scams have happened, tainting this cryptocurrency’s image. Although this isn’t a result of Bitcoin technology, it presents a robust correlation between it, shady approaches, and criminal activities.
Contradictions
Initially, the blockchain technology aimed at supporting Bitcoin, and the cryptocurrency has proven to be profitable and prominent. Satoshi Nakamoto wanted Bitcoin to support security, decentralization, and anonymity in financial transactions. However, Bitcoin is no longer as anonymous as many people want. While it offers anonymity, it’s not 100%. Also, crypto controversy remains rampant with hacks, scams, and misleading deals.
New Cryptocurrencies
Cryptocurrencies are everywhere. The world currently has over 2000 cryptocurrencies worth around $220 billion. The value is dizzying, and developers make every crypto for a specific purpose. Some cryptocurrencies are for manufacturing and agriculture, while others are for music diffusion. Some are for stability and power valuations among price alerts. With more crypto types emerging, the average person may not understand how precisely they work and their purpose. Therefore, they may be hesitant to accept or use them.
Usability
Bitcoin presents a modern technology that many people don’t understand. Getting an older person to open an account with a crypto exchange, set up a digital wallet, and use private and public keys isn’t easy. The crypto community might not mind the complexities of transacting with Bitcoin. However, some people are unfamiliar with Bitcoin and how it functions. Thus, the complexities surrounding Bitcoin transactions can limit its acceptance and usage.
Scalability
Scalability is another factor limiting Bitcoin adoption and acceptance. The Ethereum network’s capability enables it to hold 15 transactions per minute. Bitcoin can maintain between 3 to 7 transactions per second. A crypto transaction clears within 10 minutes or even more. Therefore, Bitcoin must address the scalability issue to achieve global acceptance.
Inadequate Regulations
The lack of regulations governing the cryptocurrency industry prevents some people and businesses from accepting Bitcoin. Although some countries have laws around Bitcoin trading and taxation, gray areas exist, particularly where authorities don’t know whether it’s a currency or an asset.
Parting Shot
Bitcoin is undoubtedly a new technology that some people don’t know much about and, therefore, fear embracing. Nevertheless, cryptocurrency will eventually gain more acceptance and adoption as people learn about its benefits over fiat money. Also, Bitcoin’s adoption as a legal tender in El Salvador and other nations could accelerate its acceptance and usage.