Challenges that Bitcoin must overcome to become a global currency

in #bitcoin3 years ago (edited)

Bitcoin has become a popular digital currency all over the world, but we can not forget its early days. It has been, since the beginning of the Bitcoin, like an experience in a distributed currency and a target for hackers. But now it has become a multibillion-dollar digital asset and is widely known, which makes many financial institutions concerned about the fact that their very existence is now under threat.

In this article, however, we prefer to take a detailed look at the challenges Bitcoin must face or overcome to become a global currency and to ensure that corrupt politicians do not use their way of controlling economic funds to serve their own interests.

  • Lack of general knowledge :
    The lack of public knowledge of how economic policy works is one of the most important problems faced by Bitcoin today.

It is very important to know that if people are educated about how funding works today, they will not be victims of exploitation. Of course, citizens of any country blindly trust their country's central bank. Financial companies work only for their personal interests, and therefore are more interested in the benefits they derive from their interest in people.

Central banks play an expensive game by producing state cash and deliberately devaluing the currency. This is due to the fact that the currency is not supported by any policy and can be inflated at any time, so the monetary currency is subject to unfortunate monetary decisions. We can not forget the situation in countries such as Germany, where citizens took large amounts of money to banks in the 19th century. Another case is in Zimbabwe, where funds have been overprinted, leading to inflation in their local currency. Unsurprisingly, inflation in Zimbabwe has disrupted the economy. The United States did not leave its share in the story, given that there were cases in which the government printed large amounts of dollars to balance its accounts. Many economists believe such actions will lead to chaos.

Hence, an important way is for an economy to escape the disaster in the Bitcoin (future bank). However, educating people about monetary policy and the banking system would be more beneficial than harm.

  • Payment problems :
    Another major challenge for Bitcoin is to face and overcome in terms of payment. At present, the network can not efficiently handle a large number of day-to-day transactions.

In this regard, the "SegWit" algorithm is an update that opens the way for global payments to be made on the blockbuster. At present, a more exceptional solution has been used to address issues and problems of payment. It is necessary to know that this supported solution is called "Lightning" and that it allows users to make many payments and other forms of payment without finding a closed end.

  • Admissions issues :
    If many people benefit from the use of Bitcoin, the digital currency network will expand. However, it will also change the way people look at it, as it is now viewed as a tool used by drug dealers and money launderers, but its universal acceptance will pose many problems for corrupt officials.
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