Let’s take a look at the bitcoin problems
Key Points:
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- A Currency or an Investment?
- Popularity
- Volatility
A Currency or an Investment?
Before we dive into the problems with bitcoin, I guess you need to ask yourself precisely 2 questions.
Have you really ever thought of it as a currency?
Are you just buying and holding it just as an investment?
Hoping that one day it will increase in value and make a couple of bucks on the side, or you will be rich in a couple of years or something, well, let me tell you something it is too late for you to become a millionaire buying bitcoin unless you are already a millionaire.
But don’t lose hope. You can still become a millionaire but with other cryptocurrencies.
Now read carefully and if you are missing out on anything, write in the comment section or check my other Articles.
So, it’s not that easy for Bitcoin to be a currency because most of the people who are holding it consider it as an investment, not a currency. On the other hand, some people are afraid of buying Bitcoin because of many reasons in their heads. (I asked people why they don’t buy bitcoin, and, in this post, we will discuss it)
But to be fair, it is not really their problem that they don’t recognize Bitcoin as a currency that is Exactly why we need to spread the word and the knowledge that Bitcoin is not just an investment, its mainly a currency
And that leads us to the next problem, exactly as you’ve guessed popularity.
Popularity
This is one of the most common bitcoin problems:
Bitcoin is the most famous cryptocurrency, and it is quickly gaining popularity as a form of digital gold, But Bitcoin is only accepted by a small number of people. Be aware that bitcoin is a digital currency which means that it is online, meaning that you can only use it online to buy stuff from online stores that accept it as payment.
People fear buying bitcoin because it is not physical, and people tend to trust what they see and what they can hold. Even though they put their money in the bank, they don’t know what banks use it for. they just see numbers on the screen of their mobile phone, and when they want some money, they can withdraw some from any ATM or the bank itself, and that makes them trust the banks and keep using FIAT (paper money). Therefore, people don’t buy bitcoin, in my opinion.
The only solution is TIME. We just need to wait and keep on spreading knowledge.
Volatility
If you’re looking to use Bitcoin as a currency or an investment now, the price is highly volatile and can change from having a worth of around 60,000 US dollars in 2021 to about 20,000 US dollars in 2022.
But still, if you are going to compare it to some of the stocks. Bitcoin has shown lower volatility than 112 stocks of the S&P 500 in a day period and 145 stocks YTD.
Bitcoin will only fall when a large number of investors decide to offload their coins leading to a decrease in the coin price, and so the demand drops.
