Bitcoin's Number One Threat

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Without a doubt, Bitcoin is arguably one of the trendy cryptocurrency in the crypto space, with a total market cap of $180,673,066,674 (at the time of drafting this report). Generally, Bitcoin goes over being just a utility token, rather it's a currency that is gaining more traction and users daily.

What makes this currency so unique is because it is backed by blockchain technology which makes it completely decentralized, hence no middleman, mediator, the third party has the right or power to control it. However, regardless of all the mind-blowing intricacies of this currency, it is still exposed to some threats which we will be discussing in a few.

Altcoins could claim the throne

I'm certain you must have heard about altcoin or even traded some. Altcoins are more like a replacement of cryptocurrencies initiated immediately after the success of Bitcoin. Generally, altcoins boast of being a better substitute for bitcoin.

In case you don't know, there are hundreds if not thousands of these altcoins as some are worth tens or hundreds of billions.

Bitcoin might be worth significantly more than any other crypto, but it doesn’t boast superior technology or do anything that other altcoins can’t. Should we chalk it down to a first movers advantage, or will Bitcoin somehow retain its market dominance.

Government takeover

Some countries like China, Australia, Vietnam, Bolivia, Columbia, and Ecuador have strict restrictions on the buying and selling of cryptocurrencies. This strict restrictions also comes in as a threat to Bitcoin as other countries might as well place a strict restriction over the use of these coins.

Think of something like Segwit2x. It was a proposed hard fork of the cryptocurrency Bitcoin. The fork was slated to occur on 16 November 2017 but was canceled due to lack of consensus. The fork would have increased the block size to 2 megabytes. Governance takeover like Segwit2x will result in losing more control of the Bitcoin ecosystem.

My Opinion: If you'd ask me, one of the biggest threat to this disruptive currency (Bitcoin) is the way people react to new things and technology. What could be making others flirty rich and living their best lives could be seen as scam and Ponzi-scheme to another. It's no lie that people are always afraid of what they don't know and what they don't care to know.

Disclaimer:

This is not financial advice, nor a guarantee or promise in regards to any result that may be obtained from using the above content. The information provided here is for informational and entertainment purposes only. It should not be considered as financial and/or investment advice. No person should make any kind of financial decision without first consulting their own financial adviser and/or conducting their own research and due diligence.