The Economist Rains on the Bulls Parade, Says Bitcoin Revival Probably Won’t Happen Ever Again
Most people know that The Economist is one of the leaders in financial news in the entire world, leading many traditional investors to take note of their predictions. However, their attention is on the Bitcoin world today, as they discuss the crypto asset and the multiple flaws that stand in the way of its revival.
There has been plenty of crypto proponents of that have wagered their predictions over when the Bitcoin revival will come, but there is a lot standing in the way, according to The Economist.
The recent article will not be appreciated by crypto bulls at all, because it says that there is not likely to be a comeback after the fall it saw last year.
The article starts by discussing the good days or Bitcoin, when Bitcoin futures were launched by CBOE and the total price was close to $20,000. However, all the circumstances did not last, and the bubble popped, leaving the Bitcoin futures contracts in the past and much more.
Apparently, the publication believes that there are three specific projects that can keep Bitcoin from testing another ATH, which include the continual frauds, scalability, and lack of adoption.
Bitcoin might be celebrating ten years in its own industry, but it is still a payment option that is more of a niche than anything else. The total trading volume last year, which amounted to about $2.4 billion, was credited to the activity of merchant-service providers. Plus, recent evaluations from Bitwise Asset predicted that a total of 95% of trading volume is not even real.
Scalability has been an ongoing concern, as it is bashed for the lack of speed on the blockchain. Without the same instant performance that credit cards and even cash offers, the concept of reaching the desired speed of users is far away. Still, as far as remittance services around the world, it still has greater speed and efficiency than SWIFT.
Scams are always in the news. In fact, it is hard to go more than a few days without seeing another hacker steal millions, or another website be falsely impersonated. Even though the traditional market faces much of the same issues, the longevity of the economy under its rule has allowed consumers to effectively give it a free pass.
Cryptocurrency, and Bitcoin in particular, does not have the same long-standing performance, and it will have to show a much smaller ratio of its failings to be trusted in the long run.
To view the full article from The Economist, visit https://www.economist.com/finance-and-economics/2019/03/28/flaws-in-bitcoin-make-a-lasting-revival-unlikely.