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We believe that the greatest threat is regulation aimed to kill Bitcoin. Several governments across the world have clamped down on exchanges, some halting trading altogether. Others have gone on to outright ban the use of Bitcoin. Sudden government actions in major Bitcoin trading hubs stand to disrupt the market, with the potential to severely affect the utility of bitcoin and its value.
However, banning bitcoin in any democratic country will be extremely difficult. Bitcoin's decentralized approach to currency is very people-centric and as it becomes more mainstream, more people will understand its benefit. Any democratic government that bans something so beneficial for the people risks losing power.
Another threat is the community disagreements and conflicts that result from this -- such as too many hard forks -- also have the potential to create dangerous turbulence in the marketplace. While nothing severe has happened just yet, this possibility becomes greater as the market gains momentum and the stakes become higher.
"Bitcoin has found a way to overcome many obstacles in the past," said Pitti. "The industry learned from Mt. Gox and wallets and exchanges have dramatically stepped up their security game." But such a raid on the exchanges with hackers growing craftier and with those controlling the exchanges often operating without significant checks and balances in place. The price of Bitcoin has been climbing for quite some time now and any black swan event could make people, especially those who are new to the cryptocurrency space, quickly lose their confidence in it and make the price drop rapidly.
"The biggest issue that Bitcoin is currently facing is related to scalability," Karki said. "The price and delay in transactions are making it difficult to actually use. Some people seem to prefer this, it portrays Bitcoin as a good store of value in their minds, while others would like to see it have some utility."
This is a market used to double digit price swings both upwards and downwards and holding can mostly be considered the most effective action to take in turbulent times. Though some insist Bitcoin is a bubble ready to burst at any moment, some are ready to see Bitcoin soar to $40,000 and beyond, Chicken Littles be damned. Taken from this source...
However, banning bitcoin in any democratic country will be extremely difficult. Bitcoin's decentralized approach to currency is very people-centric and as it becomes more mainstream, more people will understand its benefit. Any democratic government that bans something so beneficial for the people risks losing power.
Another threat is the community disagreements and conflicts that result from this -- such as too many hard forks -- also have the potential to create dangerous turbulence in the marketplace. While nothing severe has happened just yet, this possibility becomes greater as the market gains momentum and the stakes become higher.
"Bitcoin has found a way to overcome many obstacles in the past," said Pitti. "The industry learned from Mt. Gox and wallets and exchanges have dramatically stepped up their security game." But such a raid on the exchanges with hackers growing craftier and with those controlling the exchanges often operating without significant checks and balances in place. The price of Bitcoin has been climbing for quite some time now and any black swan event could make people, especially those who are new to the cryptocurrency space, quickly lose their confidence in it and make the price drop rapidly.
"The biggest issue that Bitcoin is currently facing is related to scalability," Karki said. "The price and delay in transactions are making it difficult to actually use. Some people seem to prefer this, it portrays Bitcoin as a good store of value in their minds, while others would like to see it have some utility."
This is a market used to double digit price swings both upwards and downwards and holding can mostly be considered the most effective action to take in turbulent times. Though some insist Bitcoin is a bubble ready to burst at any moment, some are ready to see Bitcoin soar to $40,000 and beyond, Chicken Littles be damned. Taken from this source...
Bitcoin has been surging in value for weeks now but there remains to be big challenges that can soon be threats to it if not given appropriate solutions and remedies. I am now wondering if the decentralized nature of Bitcoin has not become a big hindrance for swift resolutions of the problems affecting it a long time. It is as if Bitcoin could not decide on what to do and what are the solutions that should be adopted because there is no single person who can decide for it. Well, as we realized now there are advantages and disadvantages with the decentralized nature of cryptocurrency but we know that at the end of the day the advantages will always win over.