5 Major Reasons Hindering Bitcoin's Growth
Bitcoin has had tremendous success in the last 7 years growing thousands of percents in value. But Bitcoin still faces problems in adoption leading to a comparatively lower transactions volume on the blockchain. The solution to the five problems could truly establish Bitcoin as a major contender to fiat currencies.
Negative Reputation - One of the major reasons why bitcoin is not considered as a viable currency is its connection with illicit transaction on the dark web, where bitcoin were used to buy drugs and guns. But the real question is: How does that make bitcoin a bad currency? Even USD is being used for making illegal transactions but it still occupies a very favorable position. Bitcoin should be seen as a currency which can be used for all sorts of transactions, irrespective of what it is used for.
Lack of Technical Understanding - Bitcoin or cryptocurrencies in general, are based on the blockchain technology is not understood by many people. It requires a good understanding of cryptography and some basic elements of finance to understand the role it plays. But there are dozens of training videos being out up for beginners to get accustomed to.
Volatility of Price - Bitcoin gathered fame when it increased to an all time high price equalling an ounce of Gold, but immediately after it crashed down to the 200's USD in the aftermath of MtGox crash. This excessive volatility has provided an opportunity of speculative investment but also made average investors hesitant to invest and use Bitcoin. This instability should be addressed as the volume increases to a comparable extent as fiat currencies.
Block Size - The Bitcoin blockchain, as of this moment, can handle a total of 3 transactions a second. This limit in the block size can pose a major constraint on increases in volume of transactions. There have been many instances in recent past where there were a huge backlog of transactions piling up on the blockchain, increasing the transaction cost and time. This is one major factor which has to be addressed quickly, with plans of Segwit2x and other in the works.
Security - Past events such as the MtGox Hack and the DAO have led people to question the security of these blockchains. With hundreds of thousands of Bitcoins being lost or stolen and compromising the trust of its users. Bitcoin was created to be fully decentralized, I believe people shouldn't leave their cons in online wallets. With the advent of decentralized markets, the necessity of using centralized exchanges like Poloniex and Bittrex are no longer the only option. People should also educate themselves on the security features of Bitcoin and other cryptocurrencies.
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