The Bitcoin dilemma still lives strong on discussion forums and social network, and it has mostly divided the crypto community into two groups — those who believe that the coin has a future, and those who are sure that it will eventually hit zero.
While Bitcoin itself still remains the largest, most highly valued, and the most influential coin on the crypto scene, many are questioning for how long this will be the case. BTC has certainly managed to survive every large catastrophy that has befallen the crypto space in the last 10 years, from market crashes to large exchange hacks, such as the one that hit Mt. Gox.
While the coin survived these incidents, it did not come out of them unscathed. After the Mt. Gox hack, for example, BTC needed several years to recover and lead the rally that occurred in 2017. And, for a time, it seemed like that is the end of crypto troubles. Coins were highly-priced, new ones were appearing left and right, and the constant flow of new investors and businesses seemed neverending.
Then, 2018 arrived, and the crypto market experienced another dramatic change.
Bitcoin’s troubles in 2018
The first few weeks of 2018 were still marked by hype and led by a rally that started several months earlier. However, seemingly out of nowhere, the market crashed, and Bitcoin started losing value. In the following months, its price continued to drop until it hit $6,300. After staying on the “new bottom” for several months, the market crashed again on November 14th, and Bitcoin continued the drop all the way down to $3,200.
Within a year, the largest coin dropped from over $20,000 to only $3,200, and while the price did attempt to jump back up on several occasions, it always sank back, currently sitting at $3,480.
Of course, this is far from $0 as Bitcoin skeptics are predicting, but the fact remains that Bitcoin is not doing well when compared to its best moments. There are several reasons for this, some of which may turn out to be quite large obstacles that the coin will have to defeat in order to survive.
Problems that Bitcoin has to face
Whenever someone mentions Bitcoin problems, a number of them immediately come to mind. High volatility is definitely one of them, and when examining the coin’s performance in the last two years, it is immediately clear that this is no over-exaggeration.
Scalability issues are still present, despite the fact that they were noticed even before Bitcoin’s genesis block was mined. The coin, while innovative and revolutionary even by its very concept, still cannot scale in order to handle the high number of transactions. This leads to higher trading fees, more extended waiting period of transaction verification, and similar issues.
Another big problem is the high cost of mining, which has already led numerous miners to abandon the industry. Entire mining farms had to shut down because it was no longer profitable to mine Bitcoin. The price of necessary equipment and resources were simply too great for the low-valued BTC to even cover them while making any significant profit is becoming harder and harder.
A number of other issues persist as well, such as constant hacking attacks and coin thefts, Bitcoin’s lack of anonymity (it remains pseudonymous, at best), and the price that keeps sinking further down. Not to mention another delay of Bakkt Bitcoin Futures Exchange, which was supposed to attract institutional investors, and instead the Intercontinental Exchange launched Bitcoin futures contracts limited to only one per day. Then, there is the withdrawal of Van Eck and SolidX Bitcoin ETF application that happened as the SEC cannot make a proper ETF decision due to government shutdown. Furthermore, some analysts have already predicted that the coin will continue to drop until $2,500, possibly even lower.
While this has yet to happen, it is clear why some members of the crypto community, as well as tho
The situation may not be as bad as BTC hitting $0 in 2019, but there are still many problems that have yet to find any real and practical solution that might save the number one coin. Nobody can predict the future and say what will happen with certainty, but for now, there is definitely room for Bitcoin to get improved.