- Bitcoin could collapse as it is still in its early days.
- The use of the cryptocurrency as a legal alternative of fiat is slower than expected.
- The price volatility of the foremost cryptocurrency and minimal knowledge of crypto have deterred retail traders from utilizing cryptocurrencies.
Mike McGlone of Bloomberg Intelligence recently acknowledged in an interview with Kitco, that Bitcoin may not succeed hence why it is a lot more precarious than gold. He admits that due to the technology being in its infancy days, it could collapse. “It could be banned. It could be regulated away” says McGlone. However, the Bloomberg Intelligence representative claims that the leading cryptocurrency has already passed that test.
Sean Stein Smith, Professor and enthusiast for blockchain, stated in July of this year, that the use of Bitcoin as a lawful replacement of fiat, remains stagnant than expected. The blockchain enthusiast proposes three reasons for its static progress in this area.
Firstly, its price variations deter retail traders from using the digital currency. Secondly, although Bitcoin is deemed incognito, transactions and possessions can and have been tracked down to its owners. Lastly, many still have little knowledge of crypto and its virtual currencies are persistently linked to fraud.
Matthew Morris, a member of Carr Consulting and Communications, similarly noted that the leading cryptocurrency’s unreliability and poor correlation with other assets has flagged some questions. When stocks started to sell-off in March, Bitcoin’s price dropped which wasn’t supposed to be the case. Yet, gold, silver and oil plummeted as well due to traders shifting to cash.
The future is still bright for Bitcoin
Nonetheless, simply because the famous coin has not been broadly accepted in 2020 as another fiat currency does not mean it will fail. The chief cryptocurrency has unquestionably modified the world of technology and finance. Bitcoin’s interest rate is near to zero and it maintains a healthy reputation among investors.