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Challenges Bitcoin must overcome to become a global currency

April 12, 2018

Although Bitcoin has gained tremendous popularity throughout the world, we cannot forget that it’s still early days for the cryptocurrency. Right from its inception, it has been mostly an experiment on distributed currency and is constantly targeted by hackers. However, Bitcoin has emerged as a multibillion-dollar digital asset widely recognized globally, thus becoming a cause of worry for the financial institutions.

If you’re someone who actively bets on platforms like Sbat, and is wondering if bitcoin will gain acceptance on all the gambling platforms on the Internet, let’s acquaint you with some of the challenges this digital currency would need to overcome to become a truly worldwide currency. The end purpose is to ensure that the global economic funds are not controlled by corrupt politicians, for their selfish interests.

Payment Problems

One of the most significant problems faced by bitcoin is to do with payments. As of now, the network isn’t able to efficiently process a vast number of transactions that happen each day.

SegWit offered an upgrade that created a blockchain avenue for facilitating global payments. However, an even better solution has been devised to address this issue better. Known as Lightning Network, it enables users to make multiple payments, without clogging up other payment forms.

Lack of Awareness

The lack of public awareness on how economic policies work is another major problem faced by bitcoin today. It’s essential to ensure that the general populace understands the workings of modern finance so that they can’t be taken undue advantage of. People everywhere blindly trust their corresponding Central Banks. On the other hand, financial companies are more interested in their revenues, oblivious of people’s welfare.

It’s relatively easy for Central Bank to produce some currency notes and willingly reduce the currency’s value. This is due to lack of any specific currency-related policy, allowing Central Banks to inflate the currencies anytime they want.

Who can forget what German residents had to go through in the 19th century when they had to carry exorbitant amounts of money to the banks with wheelbarrows! Zimbabwe is another case in example, where the currency has been unreasonably inflated because of excessive printing. As a result, the economy suffered significantly. The United States is not too far behind where the government regularly prints dollars in significant numbers, to balance its accounts. All such actions lead to economic chaos.

Bitcoin comes as a ray of hope to avoid any such disasters. Hence, it becomes critical to educate people about the banking systems and fiscal policies, which are doing plenty of harm to people’s money.

Acceptance Problems

The only way Bitcoin’s network can expand is when people actively use it for their day-to-day transactions. Once that starts happening, it will significantly change the way society views Bitcoin. At present, it is widely considered as a currency for money launderers and drug dealers. Worldwide acceptance although beneficial for the general public can lead to a headache for corrupt officials.

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