Despite the heists and regular complications, Bitcoin has survived. And its worth has also increased. For a coin, it’s now valued at $2,000.
It’s not a significant milestone. However, it does reflect confidence from regulation and the increasing demand resulting in its value rising to hundreds of dollars within a few weeks.
But that doesn’t mean you need to be comfortable with your fortune if ever you’ve amassed Bitcoin. Even though its worth has increased, the cryptocurrency market is down in the past few months.
Before, its market was around 80 percent for every share. In a matter of months, it was down to just 47 percent. Litecoin and other cryptocurrencies have experienced surges causing Bitcoin’s control to diminish.
What’s the reason?
There’s no exact explanation on why Bitcoin’s control has diminished. But miners are concerned that Bitcoin’s scaling causes transactions to slow down. That said, most people only want to use alternatives that won’t slow down easily.
However, the increasing value of Bitcoin is an indication that not all people are too concerned about the bog down issue. It could be that it has not frightened users yet.
But should it be considered as a credible currency?
Unfortunately, it’s not yet a plausible currency. One of the reasons is that its value is unstable. And as mentioned earlier, processing it is too slow.
For it to be considered as a currency, it should first have a stable value. This is vital to a country’s economy to entice investment. A stable currency is what investors want to ensure a stream of future earnings. With it being unstable, investors can’t predict its future earnings. That said, less investment will happen.
In the past month, its value is changing. Sometimes it’s up, and there are times that it’s down. Although it saw a rise in the past 30 days, its value for seven days was only over 3 percent. And people don’t want to invest in a currency with a value that can easily change by 50 percent within a month.
Apart from that, a currency should be easy to transact. Bitcoin transactions are extremely slow. The reason for this is to protect the blockchain security making Bitcoin secure. Because of that limit, it can take a simple transaction to complete in a few days.
Thus, without those two elements, Bitcoin is complicated to be a currency. For that reason, experts consider it as an asset that you can trade in the hope that the value will increase and yield a profit.
Bitcoins can be used to hide your wealth. They could also conceal your transactions, especially if they’re illegal (like what happened in WannaCry).
Even if it’s not yet considered as a credible currency, there’s no need to panic. That is, if you’ve already committed to it, you must not stop now. However, you must also not assume that Bitcoin will remain a favorite format of choice. Since its value can change easily, you need to be wise in using it.