Can Bitcoin Fail?

Bitcoin is a revolutionary digital currency that has the capability of transforming the global financial market and forming a unified global currency system. Bitcoin is also in a speculative bubble that can burst at some point in the future and everything it stands for could come crashing down.
Okay, That’s so Confusing
Bitcoin has every potential of being a global economic system but it’s not refined enough right now to be declared that just yet and is facing problems that are growing faster than it can address them. There’s so much to talk about why Bitcoin can fail that just the task of describing it is difficult to condense into a single article but an attempt can be made to be brief about why that can happen.
Transformational but Disruptive
The world has witnessed many transformational developments in the financial markets where they were considered to be able to change the financial system altogether and garnered interest among investors globally. They’d assume that this new medium has the potential to shift the status quo of trading globally but they have all come to a point where they’ve collapsed (The Tulip mania of the 1630s).
These transformative mediums have indeed shown initial promise but have disrupted the existing flow of currencies. Early investors who reaped from the initial benefits and managed to bail out right before they crashed earned greatly while the late comers lost fortunes in the backlash of their downfall.
Remember the Bonds?
Something that hits closer to home would be the bonds in early American History. Railroad bonds, electric utility stocks, internet shares, Japanese conglomerates and most recently real estate, all of them were subject to a crash when the optimism for their success went way overboard their logical expectations. The real estate market crash caused the economy to derail horrifically.
The meteoric rise in the price of Bitcoin is more than anything in the finance industry. Its rapid growth has even surpassed the Tulip Mania in that respect and the number of people jumping onto the cryptocurrency bandwagon is increasing at an alarming rate.
Establishing a proper global economic system out of nothing is not a simple feat to accomplish. The closest we can get to that system is the US dollar. This currency accounts for about two-thirds of global financial and economic transactions right now. The reason is that it’s been around for a longer time and the regulations in place allow for a certain level of stability that can maintain its position firmly.
Bitcoin does not have the same well established regulations in place. It’s still just an infantile system that needs time to grow and resolve all its problems of scalability and power consumption before it can attain such a level. Bitcoin isn’t impervious to volatile changes in its value. That makes Bitcoin fail as a currency since it isn’t a reliable storehouse of value. Its credibility as a medium of exchange is questionable as well. Not all governments are going to allow Bitcoin to be used for trade within their economies. There’s no point in owning Bitcoin if you cannot use it.
The worst of all is Bitcoin’s usage on the ‘dark web’ for the transactions involving illicit goods. That has been the subject of great criticism. It is factors like these that will not allow the cryptocurrency system to thrive properly unless they’re addressed other than the internal problems of the Blockchain network itself.
So, yes. Unless the problems are solved, Bitcoin seems like it inevitably will fail and horribly so. If you do have to invest into it, do so as a spectator and with only what you can spare to lose in case it crashes.

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