What Are Bitcoin’s Greatest Limitations?

There are several big limitations when it comes to the future of the Bitcoin network. These limitations mostly concern the currency’s high transaction time, lower than ideal adoption rates and similar issues including potential legal problems. Governments simply aren’t ready to embrace the concept of Bitcoin and there is hardly a chance of Bitcoin becoming acknowledged by the regular economic system for the time being. Simply, without any central institution that is in control of the fluctuation of its value, it is rather hard to influence the price of Bitcoin. There is a finite amount of Bitcoin in circulation, which makes it very similar to gold. The value will keep rising, which will create some difficulties actually buying something with Bitcoin.

Every negative statement by government officials regarding Bitcoin and cryptocurrencies in general decreases adoption rates. For something that was designed to become a valid, everyday method of payment it is important that there is global acceptance. Bitcoin recently became a familiar name globally, yet most people still don’t really understand the concept of Bitcoin. Adoption comes in waves, and by now Bitcoin has been accepted by innovators and early adopters. They are mostly intelligent and well-educated people and for Bitcoin adoption by this audience was an easy task to achieve. The remaining, much larger portion of the global population is much harder to convince to accept Bitcoin since they are generally a more conservative crowd.

Block times and transaction times are incredibly high, especially because of the amount of computational power behind the network and all the miners within it. The protocol for transactions must be upgraded to some extent in order to speed up the process. Most people are not going to pay with Bitcoin if the payment process can last for more than a few hours in certain occasions. When it comes to computational power, there are reasonable concerns that it will decrease once all the coins are mined. Already, there is no chance of mining Bitcoin from your home. There are some suggestions that it should be resolved by including small fees per transaction to help miners continue making a profit from their businesses.

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