Recently I have started to learn about forex, stock trading and cryptocurrency through various online sources and while I was writing this article the bitcoin exchange rate with the usd is now at 3,844.90 United States Dollar for one bitcoin which means the value of bitcoin is falling again since it has bounced back to 4,000.00 United States Dollar for one bitcoin a few days ago. Will there be another big drop in this few days time? I don’t think it will get below 3,000.00 United States Dollar for one bitcoin, or will it?
Anyway, the bitcoin exchange rate is not really part of my concern because I don’t own any bitcoin at the moment. My major concern is where is the future of bitcoin, there are lots of holes in bitcoin that need to be patched before it can become a widely used currency around the world and below are a few of them that I can think of, again I just want to let you know that I am an outsider in the bitcoin business so do correct me if I am wrong about some of the views below.
1) The major online shopping sites have not accepted bitcoin up until now, by right this issue should have been solved a few years ago when bitcoin value is so high as compared to the us dollar. But I have never heard any major online shopping site which is willing to accept bitcoin as a payment method, hopefully we can solve this issue before 2025?
2) When we search on google for the bitcoin exchange rate, for example the one which appears on top of this article, those exchange rate is actually not the one which has been agreed by the central bank of any particular country around the world, for example has the us central bank agreed on the exchange rate above?
3) We cannot use bitcoin when we travel to another country, can we use bitcoin to pay for hotel rent when we are in a country such as Argentina?
4) It is very hard to buy bitcoin online, you will need to provide extra document if you want to buy bitcoin online, is it possible that the process can get simplified in the future? Can we buy bitcoin offline? There is bitcoin machine in some countries but most of the countries still do not have this kind of machine yet, will the bitcoin machine become a reality in all the nations around the world?
5) The exchange rate of bitcoin is very unstable, and I am not talking about just a few cents changes such as those of the world currency but instead bitcoin vs world currency exchange rate goes up and down in a very huge margin. Imagine that you are a second hand car dealer and you have sold a second hand car worth 5 thousands usd for one bitcoin just to find out that the exchange rate of bitcoin has dropped to 2000 usd per bitcoin on the following day, will that hurt you?
6) Bitcoin comes with two type of wallets, the offline wallet is the one which I am really worry about, if let say the computer hard drive which contains the bitcoin wallet is damage and we will not be able to recover the data (include the bitcoin’s private key) in that hard drive, is there a method which we can still get back our wallet?
7) When we are talking about cryptocurrency then we are not just talk about bitcoin alone but there are so many types of them and this really turns the cryptocurrency market into a mess, it is better to just limit the coin type to 3 instead of let them overflow. Even with bitcoin we are having trouble to use it to buy product online, can we really use those other coins to buy stuff from the online store? If we cannot then what is the use of those coins?
8) Hacker is still a big issue for the bitcoin owner, your coin is not safe even if you have kept it inside the online bitcoin wallet.
9) Who we should turn to if one day the exchange rate of the bitcoin vs the major currency of the world suddenly drops to 0, when we buy share we know which company should we look for if the share value goes to 0 so we can ask that company to pay us the compensation. When we own a major world currency such as the us dollar there is a security guarantee because American economy is simply too big to fail so even dollar has temporary lost it’s value USA is still there to solve the issue. But bitcoin is not a company and it has not been backed by any government of the world so if it’s value turns to 0 all our investments are basically gone.
Bitcoin itself is a great concepts and if those 9 issues that I have mentioned above can be solved then we will really see a bright future for this wonderful cryptocurrency!