As the most traded digital currency, Bitcoin has had its highs and lows. The price of this digital money has more than halved in the past six months. As a result, when the value of this digital money is unstable, people end up selling out of panic. On top of that, when things get tough, it is hard to consider why you invested in this electronic currency in the first place. However, there are enough reasons to remain optimistic about this electronic currency but simultaneously be skeptical. People can send and receive Bitcoin via reliable exchanges like bitql app. Below are the reasons.
Increased Bitcoin Adoption
As per the reports from Gemini, a top crypto exchange, this digital money reached a higher point in 2021. There is an increased adoption rate of this digital currency because many skeptics have discovered that the advantages of Bitcoin outweigh its disadvantages.
On top of that, private and public financial institutions have started to trust this digital money. Business owners are now accepting payments in the form of this digital money globally, which has led to many people finding places to spend their digital money. Still, MasterCard and Visa have launched Bitcoin credit and debit cards. On top of that, large and established businesses like Microsoft and PayPal are now accepting these virtual money payments.
Therefore, the increased adoption of this electronic currency has made people optimistic about Bitcoin in the future.
Legalization by Countries
El Salvador was the first country to make Bitcoin a legal tender, which has made the country reap many economic benefits. What’s more, the legalization of this digital money in El Salvador promoted financial inclusion meaning that the unbanked population was involved in the economy.
Along with that, the Central African Republic also recently approved this digital money as a legal tender. Therefore, the adoption of this electronic currency by El Salvador and the Central African Republic has made people remain optimistic about the future of this virtual currency.
Increased Blockchain Technology
Bitcoin is a decentralized currency meaning that the central bank does not regulate its operations. On the contrary, Bitcoin has an underlying technology known as the blockchain. The blockchain is a distributed legal ledger that records all Bitcoin transactions. In addition, blockchain offers anonymity and transparency to Bitcoin users.
Several upgrades are emerging to improve the efficiency of the Bitcoin network. For instance, Bitcoin implemented Taproot to improve scalability, efficiency, and security.
On the contrary, here is why some people are still skeptical about the future of this electronic currency.
Lack of a Physical Form
This digital money does not have a physical form. Therefore, people cannot use it in physical stores since it only exists on a decentralized network of computers. Moreover, this electronic money does not tie to any specific physical commodity. As a result, the lack of a physical form leads to a lack of physical evidence to support the existence of this electronic currency.
It’s common for individuals to find it hard to invest in a currency with no physical form. On top of that, no central bank regulates this electronic asset’s daily operations. As a result, investors avoid investing in this digital currency due to the fear of getting scammed.
The Carbon Imprint
Mining is one of the most popular means that people can acquire and own this virtual currency. The mining process, however, requires a lot of energy. As a result, the carbon imprint generated because of mining this virtual money is a significant concern to some countries. In the end, the fears of the carbon imprint encourage skepticism against this virtual money.
The Bottom Line
Bitcoin is one of the world’s most promising cryptocurrencies, and some people view it as the future of money. However, there are reasons some people are optimistic about its future while others remain skeptical. The volatility of Bitcoin is one of the reasons people are still uncertain about its value.
