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What Bitcoin Lacks to Gain Mainstream Adoption & Transform into Major Currency

What Bitcoin Lacks to Gain Mainstream Adoption & Transform into Major Currency

What Bitcoin Lacks to Gain Mainstream Adoption & Transform into Major Currency

​The vast majority of traders and investors within the bitcoin and cryptocurrency industries firmly believe that bitcoin will become the world’s major digital currency and gain massive mainstream adoption in the long-term. However, in order for bitcoin to surpass the market cap and user base of reserve currencies, it needs four crucial components : Low volatility rate, stable ecosystem, clear scalability roadmap and cooperative decentralized community.

Volatility has always been a controversial and difficult talking point within the bitcoin community, primarily because an increase in the value of bitcoin is also considered as volatility. Until bitcoin reaches its maximum potential and fixed monetary supply, the digital currency will continue to grow and as a result, increase exponentially in terms of market cap and price.

For bitcoin to be utilized and perceived as a settlement network and digital cash system as outlined by Bitcoin creator Satoshi Nakamoto in the bitcoin white paper, it needs to demonstrate a substantially low volatility rate for general consumers, similar to that of reserve currencies. In the past few years, bitcoin volatility rate decreased significantly, down to 2 to 3 percent.

Continuous decline in bitcoin’s volatility rate has to be supplemented with a stable ecosystem and clear scalability roadmap. At the moment, the bitcoin community is divided into two and the conflict between Bitcoin Core and Bitcoin Unlimited supporters has proven to be nothing more than an issue of ego. Bitcoin Unlimited supporting miners and businesses have expressed their opposition to Core because of the development team’s disregarded promise agreed upon at the Hong Kong roundtable conference to increase bitcoin’s on-chain capacity by 2 MB.

In the contrary, Bitcoin Core supporting companies, miners and developers have lost trust in the Bitcoin Unlimited team and its supporters after a few questionable scandals, including the AsicBoost controversy and the Bitcoin Unlimited development team’s closed source updates to their codebase.

Bitcoin development should be based on a cooperative decentralized community wherein solutions and compromises are made, rather than an emergence of unjustified arguments on a daily basis.

Cryptocurrency advocate and angel investor Neil Haran wrote:

“Stable prices don’t just happen by accident. They are not a miracle of the market-they require a carefully constructed foundation. A stable currency needs a stable ecosystem first. While it’s tempting to market the currency too soon because capital injection can do a lot to raise prices in those critical early periods, it’s better to wait. Advertising is like opening up Pandora’s box and inviting the world to look inside. Some of those users will be interested in the actual currency, but others will be undesirable speculators that just leech off the system.”

There exists some regions that are using bitcoin as a proper means of payment. The Philippines in particular perceives bitcoin as an efficient remittance method to send money from one place to another quickly with low fees. In fact, the central bank of the Philippines legalized bitcoin and approved it as a legal tender, as did the government of Japan.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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