What are the disadvantages of Bitcoin (BTC) cryptocurrency?

What are the disadvantages of Bitcoin (BTC) cryptocurrency?

By Lềm Thị Phiến | An an | 22 Jun 2020

1. Calculate volatility

Bitcoin's price keeps rising and falling, going through many cycles and breaking classic price bubbles. After extreme peaks, the market capitalization of Bitcoin was blown away very quickly. The value of Bitcoin was unpredictable, the price increased rapidly and also dropped dramatically. This will be a huge minus point in the eyes of investors.

2 Risk of losing keys

The key is a password of letters and numbers used to access Bitcoin wallet. Losing this key means losing your wallet. However, most current wallets have a backup mechanism, and obviously users should do so before using the wallet.

3 Legal questions

The legal status of Bitcoin in many different countries is still unclear. Some governments support the use and trading of BTC while others prohibit and place BTC outside the law because of the above points.

There are many concerns surrounding Bitcoin being exploited by criminal organizations. Some newspapers claim that Bitcoin's popularity lies in illegal transactions. In fact, when the black market website Silk Road went down, the value of Bitcoin immediately dropped.

4 Level of recognition

Bitcoin is recognized and completely legal in many countries, but some governments do not yet have a specific legal framework for this type of asset, while others have chosen to issue a ban during the review process. Necessary bills involved.

Most businesses, big or small, are familiar with BTC. It is almost impossible to ban all cryptocurrencies.

5 Continuous development

The future of Bitcoin is still unclear. Currently, governments and banks cannot control BTC so it is almost impossible to manage. However, more and more, the government tries to put it into legal orbit. Then a Bitcoin will lose its inherent identity and will become a normal currency.

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