Bitcoin has been incredibly successful in recent years, but has it reached the end of what it’s capable of being? We explore 13 reasons why Bitcoin may fail and provide some insight into the relationships that have made Bitcoin such a remarkable investment.
1. Beware Of The Government
Government regulations could be a big chink in the armor of Bitcoin. China, Russia, and the US have tried to regulate its trade with a variable level of success. Thus far, governments have not had a negative impact on Bitcoin. In fact, it’s been just the opposite.
2. Jealousy, The Green Eyed Monster
Banks are very “jealous” of things that can compete with them. Banks earn their living by loaning out money and making interest. Bitcoin is not controlled by banks, so they are eventually either going to have to embrace it or try to destroy it.
3. Loss of Faith
One key component to the success of Bitcoin is the support and high demand from users all over the world. The power of the people has limited the power of governments to regulate the cryptocurrency. With the loss of that support, the currency would become vulnerable to outside influences. Although, if people lost interest in Bitcoin, its value would plummet anyway.
4. Economic Recovery
If the US dollar were to recover and become the top currency once again, the demand for Bitcoin might drop as other investment opportunities open up.
Bitcoin is not the only cryptocurrency available. Other cryptocurrencies could dilute the investment opportunities, which could lead to a lack of faith by the private sector. A weakened demand could spell disaster.
6. Business is Business
What if businesses that support Bitcoin were to suddenly decide that they no longer could afford to accept Bitcoin as tender for goods and services sold? One of the strengths of Bitcoin today is the fact that businesses are starting to accept Bitcoin in exchange for real goods.
7. Parasitic Infestation
Currently, the platform is secure and virtually unhackable, but what will happen with the progress of technology? Will the plague of online cyber-attacks become potentially successful? What would be the outcome if cyber-attacks were able to penetrate Bitcoin’s defenses?
8. Loss of Control
What happens if outside sources find a way to hoard Bitcoin or take over the market value and regulation of the currency? Normally, that only happens when a government loses power, but since there is no government involved, can investor groups begin to control cryptocurrencies?
9. Divine Intervention
Even in early economies, religion played an important part. The rules and manifests of religion have had significant control over populations throughout the centuries. Anything to threaten that control would be seen as an enemy of God. Could Bitcoin stand up to that scrutiny?
10. Pure Economic Downturn
Could Bitcoin become worthless if the world economy collapsed? While this scenario is certainly possible, it seems highly unlikely because there is no government involved.
11. Ultimate Success
If Bitcoin was to become successful to the point where the price was so ridiculously high that most people could not buy, use or trade it, would it collapse? Could too much success be a bad thing?
12. United We Stand
Could coalitions of governments unite to ban or regulate cryptocurrencies? If that were to happen, would the value of these currencies fall in the eyes of the public? Could governments over-regulate Bitcoin? It seems highly unlikely, but stranger things have happened.
13. Loss of Technology
Right now, the biggest players in the Bitcoin game are online games and apps. If technology were to change to the point where such games no longer required a cryptocurrency to purchase virtual tools, would Bitcoin survive?