Bitcoin’s Top 5 Biggest Threats of the Future: Can BTC Survive These Negatively Impactful Things?
Most people associated with cryptocurrencies are already aware just how much uncertainty there is when it comes to anything related to crypto. Even Bitcoin (BTC) itself — which has been around for a decade now, and is still the largest, most expensive, and most influential crypto — is not completely safe.
Bitcoin has seen a massive surge in value back in late 2017, which is a trend that quickly stopped soon after the beginning of 2018. A new trend replaced it, and prices went spiraling down, while the investors were those who had to pay the price of the change.
Bitcoin's survival and continuous existence were never truly guaranteed. However, the coin did turn out to be surprisingly resilient. Even so, it has a long way to go before it reaches safety, and using it to make payments in the real world is still far from being a mainstream use case.
As expected, there are many dangers along that road, which Bitcoin will have to find a way to bypass or deal with. But, if it manages to do it, it will likely remain the number one coin for a long time. So, here are five biggest threats to Bitcoin, all of which can damage the coin and slow down its progress.
1. Miners Giving Up
Bitcoin mining was a necessary process ever since the coin was launched. The process has grown a lot since the early days, and whenever BTC price went up, more and more miners appeared at the scene. They were also earning much more than they do these days, which fueled their enthusiasm further.
Recently, however, Bitcoin's hashrate started dropping significantly. Bitcoin Cash hash wars were partially responsible for this, but the bigger issue is believed to be a trend of miners giving up.
Mining farms are getting shut down, and the situation in China, where hydroelectric power is scarcer, is only adding to the “dry season”.
2. Hacking Attacks
While Bitcoin continuously lost its price until it reached $6,400, and then $3,400 following the latest market crash, it is still highly valuable to those who can obtain it free of charge. This, of course, includes hackers, scammers, thieves, and alike. Because of that, there is still an incentive to attack anything that stores large amounts of coins, including wallets, exchanges, etc.
Not only do these attacks and scams result in a loss of funds, but they also negatively impact the reputation of Bitcoin and other cryptos. Cryptocurrencies have several excellent benefits to them, but the best selling point is definitely the security aspect. How can they continue to claim that when exchanges are constantly reporting breaches, and thousands or even millions of dollars in crypto disappear?
3. Regulatory Scrutiny And KYC
While a lot of newcomers to the crypto world might make a mistake of thinking that Bitcoin is anonymous, the truth is that it is not. It is only pseudonymous, at best. It is always possible to track the funds and wallets, and since regulators around the world are forcing exchanges to go through KYC procedures,
As users want their privacy, many of them are starting to turn to so-called privacy coins. However, this is also not a proper solution, as altcoins usually lack in security. The only good thing that is coming out of the scrutiny of the BTC network is the fact that it keeps bad actors away. The problem is that legitimate investors are leaving as well, and so the more financial regulations Bitcoin is forced to face, the more value it loses.
4. Crypto Wars
There are numerous investors that claim that Bitcoin is being destroyed due to the BCH situation and hash wars that took place after November 15th hard fork. While there are experts that believe that this is not the reason why Bitcoin got “broken”, the fact is that hash wars did trigger the entire market crash.
The entire crypto sector got undermined as a result, and a new wave of capitulation from retailers and traders arrived. While the Bitcoin network has already survived countless forks and minor incidents, wars among coins are confusing newcomers, which in turn allows scammers to trick people with ease.
5. Recession On A Global Scale
Of course, there are also factors that are far beyond the crypto community, regulators, or crypto behavior. These factors are not under control of no single entity, but they can still heavily impact Bitcoin and its price. Decades upon decades of robust economic growth, high liquidity, and alike, are having an effect at all times, which sometimes impacts the current economy in an unpredictable way.
For example, hot money went in all directions, ending up in the most curious places. This, of course, includes cryptocurrencies as well. However, that period may be over now, and people are not so keen on investing carelessly anymore.
All that would-be investors are hearing are bad news, with Bitcoin price sinking deeper and deeper. The entire ecosystem is suffering, and potential investors have no intention to enter the market now. On the other hand, experts believe that the storm will eventually pass and that cryptos will flourish once again, with the start of this new golden age potentially being in 2019. However, the only cryptos that will be there to enjoy it are the ones that can manage to survive the current situation, and reach the point where mass adoption might kick in.