Bitcoin is a cryptocurrency based on blockchain technology used as a medium of exchange of value; with this cryptocurrency, we can obtain different products and services. Its essential characteristic is that it is a decentralized currency since it does not depend on any authority for the issuance and control of its operations. It is important to note that Bitcoin is currently the cryptocurrency with the highest value and popularity globally.
In our previous article entitled Improvements that Bitcoin should have for its massive use (according to Citigroup) we share some points related to said report; however, many of the points discussed in the document reflect the “fears” of traditional banking regarding Bitcoin, because of this, in this article, we will talk about the same topic but from another point of view: the improvements that Bitcoin must-have for its massive use but from the point of view of the crypto sector.
Number of Bitcoin ATMs and wallets
As we mentioned in our previous article titled How Accepted Are Cryptocurrencies in the US and Latin America? A good way to globally measure the spread of Bitcoin is to consider two indicators: the number of Bitcoin ATMs per country and the use of wallets globally. As we can see, the major challenge for Bitcoin to continue with its expansion is for the number of Bitcoin ATMs to grow. An ATM of these characteristics has the function of serving as a kind of “bridge” for users who are not very familiar with technology or the crypto sector, either because of generational or cultural gaps. Likewise, for the number of wallets to continue increasing, the different companies and businesses in the Fintech sector must continue to expand and diversify their offer and continue to offer safe and versatile tools so that new users can easily manage their Cryptocurrencies efficiently.
Laws and government intervention
Laws and regulations are fundamental as long as they allow Bitcoin to have a legal basis and ensure its independence; however, for this to happen, there must be important reforms in each country, a clear example of this was the Gore Law in the US (1991), which allowed the Internet to not be controlled and to become in the public domain, without these reforms perhaps the Internet would not be what it is today, which is why there must be laws and projects that guarantee the independence of Bitcoin, and that it is not controlled or restricted.
Bitcoin vs FIAT
Another challenge that Bitcoin faces is the possible confrontation or competition that it may have with FIAT money (or the system that supports it); in this aspect, there may be three scenarios: that collaborate together or coexist (which would be the ideal), that the system FIAT tries to compete, control or restrict Bitcoin and finally, that Bitcoin is so popular that it ends up displacing FIAT money naturally.
One of the disadvantages of Bitcoin compared to other cryptocurrencies and systems is the speed of its transfers; for example, Bitcoin takes approximately 10 minutes to confirm an operation, while in Ethereum, these confirmations are faster since they take between 12 to 17 seconds. Second, it is important to take action to overcome this problem or improve the user experience.
Education and cultural change
Perhaps this is one of the toughest points since, in general, many traditional people, companies, and institutions are often “afraid” of change or simply have a hard time adapting to new trends or technologies. It is important that in the educational and cultural system, the importance of blockchain technology and Bitcoin is disseminated, highlighting its main advantages, such as transparency and decentralization of its operations, besides highlighting the potential that these technologies offer to the population global for equal opportunities and global development.
What do you think about this topic? What other challenges do you think Bitcoin must face for its adoption globally?
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