The great deceit of 2023 was by only the digital currency namely the cryptocurrency. Bitcoin fell even in the era of Anti-Bank Sentiment which took a lot of the public in shock because it was an unexpected situation. Even though there was a fall in Bitcoin and other cryptocurrencies also, it still reigns over all the currencies of the world.
The Rise of The Fall
In 2008 after the financial crisis which was followed by multiple banking scandals, the public as well as the investors were frustrated over this fact and they started to lose trust in banks altogether, ultimately this was where the Anti-banking Sentiment Arose. This ensured the entry of cryptocurrencies namely Bitcoin into the mainstream. But it failed to do so miserably.
Bitcoin is still struggling to be regulated in the world due to its downfall in 2022. The promises it made were broken and ultimately the trust was shifting back to banks. But Bitcoin still has the potential to rise above the rest and can move forward.
The competition
The Crypto market is a stuffed market that is very difficult to penetrate. The competition is fierce, The case of the PEPE coin where it boomed since its release in April 2023. The result of which would be an increase in transaction fees for Bitcoin and Ethereum. This further proves that, even though there is competition all the currencies are interlinked to some extent.
Proving the existence of healthy competition between each and every Currency, but this has been compounded against Bitcoin. Other Cryptos have stacked against Bitcoin offering better transaction speed, lower fees, improved privacy, etc. This made Bitcoin stranded.
Foreseen Roadblocks
The regulatory problems related to Bitcoin are one of the biggest problems. After their crash and all the legal problems related to Crypto, the image they carry has fallen behind. Bouncing back from all the hurdles would be a huge task, but crypto is up for it.
New challenges have popped up for crypto, mainly the use of crypto for major financial transactions. This will be the biggest hurdle in front of crypto. There have been a lot of challenges in front of Bitcoin since the beginning, but it has handled it and always came out with a solution. And it will be up with a solution again.
The Green Battle
Crypto has been in controversy regarding the effects it’s causing on the environment.
The amount of energy used to mine one Bitcoin is tremendous. There will always be a debate happening around this particular topic. Though there is still research going on how to reduce the energy consumption for Bitcoin mining. Someone can also use other sustainable sources of energy for the electricity used in mining, for example, solar energy.
Future for Bitcoin
There is still untapped potential for Bitcoin to be explored and it can be put to good use. It is still an undeniable fact that Bitcoin is still at the top of the Crypto chain. Bitcoin will still grow and will one day be the most scalable coin, and will be one of the most regulated coins. Just one factor that still is the most dangerous is the volatility of the crypto coins.
Bitcoin is one most promising coin which will be the future of trading and has the potential to overthrow traditional financial norms. Ultimately resulting in the new system which is more advanced and optimized.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/08/bitcoin-falters-and-send-a-wave-against-banking-sentiments/