Bitcoin is a cryptocurrency that has become popular all over the world, but we can’t forget its early days. From the inception of Bitcoin, it’s been more like an experiment in a distributed currency and a target for online hackers. But right now, it has become a multi-billion dollar digital asset which is widely known, thus making all financial institutions express fear due to the fact that the reason for their existence is threatened.
However, in this article, we would rather take a detailed look at the challenges Bitcoin must face or overcome to become a worldwide currency and ensure corrupt politicians don’t have their way in controlling economic funds for their personal interests.
Lack of public knowledge
The lack of public knowledge on how economic policy works is one of the most significant problems confronting Bitcoin today.
It is necessary to know that if people are educated on how modern finance works, they won’t be taken advantage of. The central bank of any country is blindly trusted by its citizens. Financial companies work for their personal interests alone; hence, they care more about the benefits that they derive more than the people.
Central banks play costly games by producing the country’s currency notes and intentionally reducing the value of the currency. This is due to the fact that the currency is not supported by any policy and can be inflated at any time, so the currency is subject to unfortunate monetary decisions.
We can’t forget cases in countries like Germany of residents taking exorbitant sums of money to the bank with a wheelbarrow in the 19th century.
Another case is in Zimbabwe, where money was excessively printed, resulting in the inflation of its currency. Unsurprisingly, inflation in Zimbabwe resulted in the disruption of the economy.
The United States is not left out, as there are cases where the government has printed a large number of dollars to balance its accounts. Lots of economic professionals believe such actions will result in chaos.
An important way that an economy can escape from disaster is through Bitcoin (a futuristic bank). Nevertheless, educating people about fiscal policies and the banking system will do more good than harm.
Another big challenge that Bitcoin faces and must overcome is the issue of payment. At present, the network cannot efficiently process the large number of transactions that occur daily.
SegWit represented an upgrade which opened an avenue on the blockchain for global payments. Right now, a more exceptional solution has been employed to address payment issues. It is necessary to know that this backup solution is called Lightning Network, and it permits users to make multiple payments and allows for other forms of payment not to be clogged.
If lots of people make use of Bitcoin, the cryptocurrency’s network will expand. However, it will also change the way people see it, as it’s currently viewed as an instrument for drug dealers and money launderers. Worldwide acceptance will produce lots of problems for corrupt officials.