Wondering why some people don’t want Bitcoin? If yes, here are some of the Bitcoin concerns hindering some people from embracing it.
A significant percentage of the human population sees Bitcoin as an alternative to traditional payment methods, such as credit cards and cash. And this virtual currency has taken the digital world by storm. Many individuals and companies have bought and held Bitcoins in their crypto wallets.
Several enterprises and merchants accept Bitcoin payments. Also, crypto exchanges like Bitcoin Champion have noticed an increase in users. These platforms allow people to register, fund their accounts with fiat money, and trade Bitcoin. Perhaps, you can check out the bitcoins-era.nl if you are interested in trading Bitcoin.
But even with increased usage and adoption among investors, traders, and merchants, some people still don’t want Bitcoin. Here are some of the Bitcoin concerns that hinder some people from embracing this cryptocurrency.
Volatility is, perhaps, the primary trait that characterizes Bitcoin. This virtual currency is a highly speculative asset. Somebody could buy one Bitcoin for about $1000. However, this digital currency’s value rose over 70 times in 2021.
Such a value increase could be great news for people who already have Bitcoins in their crypto wallets. However, nobody guarantees investors, traders, and users that this trend will continue. And this explains Elon Musk’s reaction after purchasing Bitcoin worth $1.5 billion for his Tesla Company.
According to Musk, people should consider Bitcoin a speculation at the moment. Therefore, they should not invest all life savings in this cryptocurrency. Overall, Bitcoin’s volatility makes it hard for investors and even some believers in crypto to hold onto their tokens.
Bitcoin Isn’t a Productive Asset
Maybe you’ve heard that many people are investing in Bitcoin. But Bitcoin is a unique asset to buy. A stock market investment enables you to own a part of a company or business. Business becomes productive if they succeed, making more money for investors. Ideally, you get dividends based on your investment in a company.
Similarly, you get income if you invest in a rental property. For instance, you can decide to take a specific return from your rental property rent or business income, say 5%. And this can help you determine the amount to the value of your investment if you opt to sell it later.
But how much do you get per year from Bitcoin? Essentially, this virtual currency does not generate income or produce cash flow like a rental property or business. It is token trading at any price anyone wants to pay for it.
Nobody knows whether Bitcoin will achieve widespread adoption or disappear in the next few years. However, Bitcoin enthusiasts believe that the cryptocurrency will achieve widespread adoption and even become a global digital currency.
And this argument has convinced many people to buy Bitcoin. Ideally, many people purchase Bitcoin as an asset believing that its price will keep increasing as miners draw closer to the total amount of 21 million coins, according to the cryptocurrency’s protocol.
However, Bitcoin hasn’t achieved its goal yet, even after existing for over a decade. Today, not every merchant accepts Bitcoin payments. Also, not every consumer uses it to pay for services and goods. Even worse, some governments, like China, have outlawed Bitcoin.
Bitcoin’s volatile vary is the primary hindrance to its use as a daily currency. Additionally, Bitcoin has governance issues, with some authorities saying criminals can use it to launder money, evade taxation, and fund terrorism.
These are some Bitcoin concerns that hinder some people and businesses from embracing it. However, this virtual currency has gained substantial acceptance and adoption in some economic sectors. For instance, some eCommerce stores and large corporations like MicroStrategy accept Bitcoin. Also, some companies have extensive crypto holdings after converting their cash treasures into Bitcoin. Thus, Bitcoin could eventually become a globally accepted currency and investment despite the current concerns.