Will Bitcoin Survive in the long run, its Pros and Cons.
Today, Bitcoin is being used and deployed by almost every industry. It represents a $687 billion market with a lot of infrastructures, context, and visibility in global finance. Almost every major institutions and companies begin to see Bitcoin as a key type of value store. it is creating worth to it as its use along with other cryptocurrencies are adopted in every organization and Bitcoin interest is growing over the years.
Following are the major points to discuss Bitcoin's survival in a long run.
1.A Big Market- In recent trends, Bitcoin is attracting a large market where massive infrastructure is attached to it. Initially, Bitcoin started off as a cheap digital coin, but now the value we all can see in the latest trend. In the beginning, it was supposed to be a digital way to pay for things. Instead, it has become a digital commodity of sorts, and one that is widely popular in investment markets.
2. Anonymous- Bitcoin provides a degree of data anonymity for its holders and users. This is kind of a double-edged sword, on one hand, it is entirely anonymous, on the other, it is completely transparent and trackable. It is anonymous in the sense that you can hold a crypto address without revealing anything about your identity in that address. One person could hold multiple addresses, in theory, there would be nothing to link those addresses together, or to indicate that the person owned them.
3. Bitcoin Reliability- Unlike the conventional currency, no central bank or any other organization has the power to create or destroy Bitcoins to manipulate their value. The value of Bitcoin is always a reflection of supply and demands. As people have experienced new doubt in the traditional banking system and the stock market, Bitcoin gains its own luster. It is more volatile than other currencies, which means its value can vary significantly over short periods.
4. Convenience- Bitcoin is becoming one of the easiest assets to buy and hold for the future. It is more portable than gold and other equities. Bitcoin has unique features that allow it to penetrate several markets, including its interoperability, its network is free of charge, security offered to users, and global availability.
5. Decentralized Finance- Decentralization means the transfer of authority and responsibility to a distributed network. This in turn allows for cheaper and more efficient transactions that don't have to go through all of the elaborate verifications in the traditional banking system. It provides an easy way of Bitcoin investment and tracking i.e. the accommodation for frictionless verification and automatic trust.
Reasons that Bitcoin May Fail
1.Untested community- We all know that Bitcoin is new in the market. We don't have its past data to analyze its record to predict the future. Like Gold and equities, we have information of its market cycle, despite this Bitcoin is considered as more solid than either gold or equities to invest in. In recent trends, the market has been grown rapidly and is adopting everywhere.
2.Volatility- The value of Bitcoin is more volatile than other currencies, which means its value can vary significantly over short periods. No one can accurately define the future of this, since this type of economics has no historical precedent. Many analysts have invoked that at some point, Bitcoin will collapse in value. It's true that if that happens, other coins will probably take Bitcoin's place.