Bitcoin is a digital currency which is handled electronically. Even though it is very popular in this current world, it has some restrictions which stop Bitcoin from becoming the future currency. Some of the limitations are listed below, learn more about it.
Regulatory Risk: Some countries like (China and South Korea) have restricted cryptocurrency and they have banned the Bitcoin transactions. The main reason for banning because of its decentralized nature of transactions and it is anonymous. The central government has not accepted the Bitcoin transactions, but it is illegally transacted in the black market, money laundering, tax evasion, and weapons procurement.
Time period: It consumes a lot of time for a transaction. It may take at least several minutes to an hour. Bitcoin transactions are slower than the bank transactions that cannot be done in a second.
Technological issues: As technology develops, many internet violence like computer hackers, fraud, online theft is increasing, which limits the Bitcoin in the future. Bitcoin is recent and fresh technology, it becomes a barrier for a few people who cannot understand the importance of trading!
Complexity: Cryptocurrency like Bitcoin are very popular, the user of this technology is very fewer. People who are technologically adaptable will grasp this technology and only they can understand the importance. Many people who cannot understand how it works because they are lagging in technical wise information, lack interest and impact on Bitcoin currency.
Not accepted globally: Still, many people are unaware of this technology, they don’t understand how this technology works. Because it is not legally accepted by the government, common people are not willing to invest in cryptocurrencies and not ready to fall in risk. Bitcoin is accepted by only a few groups of online merchandise.
Not in a physical form: Since it has no physical shape in nature it comes in a digital form, it cannot be used for our regular transactions. It would always have to be converted into other currencies
The transaction is very expensive: It is designed in a way that miners gain incentive by mining your block. As third parties are involved miners get paid when you make a transaction. And someone is paid by you. People pay more so that their transactions are processed, that’s why the trading fees are higher.
Conclusion: Always plan your goal before investing in cryptocurrency. Should understand the market price and clear set of goals are necessary for Bitcoin transactions. Detailed research about the market activities is needed for the investment.