Looking into Bitcoin: The Obstacles and the future

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The increase in popularity of bitcoin especially in 2017 can largely be classified as dramatic if not crazy. Yes, people expected that the price of Bitcoin would increase but not by a factor of 10 as it did last year, it was awesome if I may say and something that is totally worth applause. This increase, as with any other attractive investment has seen a lot of people flocking in droves to bitcoin in the hopes of securing their financial future because according to many analysts, although there are going to be discrepancies here and there, the bullish trend is likely not going anywhere soon.

Looking more into Bitcoin, here some of the things to look at and consider

Legality

Yes, there are some countries that are frowning at Bitcoin even in this 2018. One such country was Egypt that totally banned the use of Bitcoin as a medium for exchange citing concerns over it’s concealed nature. Well, that doesn’t make it illegal anywhere else. In the United States, the Bitcoin is perfectly legal as you are allowed to operate your own private currency system if you may. Many people are scared because the Bitcoin is threatening the very fabric of the world monetary system whose heart is the Federal Reserve Bank of the US. Yes, sometime later policy might be implemented but one thing I can assure you is that it won’t be a ban(the implications of a ban in the US are impossible to handle) but even though it will be implemented, it won’t be sooner as the Bitcoin is not yet influential enough to influence US financial policy.

Regulation

Currently around the world, there is a movement taking place to make the Bitcoin mainstream. A lot of financial publication have established dedicated sections in their publications to publish news and spread awareness on the bitcoin. Around 500 000 bitcoin dedicated blogs are now live online. It can’t get any better than this! At this rate, it means the bitcoin should be tightly regulated and monitored, right? Well, wrong. The Financial Crimes Enforcement Network of the US Treasury Dept actually declared that all Bitcoin miners and investors will not be regulated as well as those business that buy and sell bitcoin. Nevertheless, although the Bitcoin enjoys freedom in the US, and EU, the story is different in other countries such as China and Russia. In Russia, they even made it illegal for one to use bitcoin, an announcement that affected the cryptocurrency’s price negatively. In liberal countries, the currency will gain massive traction, in restrictive countries like Russia and China however, it will take time but I’m pretty sure they will see the light soon.

Systems

Currently, Bitcoin mining is now the world’s largest electricity consuming activity. The entire bitcoin network is decentralized and depends on individual miners and their system to verify transactions in exchange for bitcoin. From an onset, this seems really insecure and dodgy. I know it isn’t by 95% of the other 7 billion people in the world believe it isn’t and that’s something that needs to be overcome if people are to believe in bitcoin. There is still a lot that needs to be done in terms of spreading awareness of the advantages of bitcoin as compared to the current financial system we have to convince people to embrace the cryptocurrency.

Lastly, bitcoin is an alternative currency system whose advantages outweigh the disadvantages and the disruptions. It might be happening slowly but the world’s financial future will definitely be redefined by bitcoin.

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