Why Bitcoin cannot become a Global Currency

Why Bitcoin cannot become a Global Currency

By CFO Tech Outlook | Wednesday, November 20, 2019

BitcoinThe growing popularity of bitcoin could not make it a global currency due to the security issues that its users can face. Solving the security issues of the bitcoin can make it a favorite among every people

FREMONT, CA: The demand for bitcoin is growing as customers can buy goods with it from all over the world, and they do not have to change the currency also. Even though bitcoin has got its recognition rapidly, but there are some issues for which nations are reluctant to accept it globally. Before making cryptocurrency a part of life, some problems have to be addressed. 

Bitcoin Security Risks

Any online business will have its own risk, and even wit bitcoin, they are not immune to the dangers. The people using such crypto coins 

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have to be aware of the malware, theft, and scams that can attack them at any time. Today along with the advancement of technology, digital crime has also become a continuous threat for the users. Since cryptocurrency exists in a digital state, so the users have to be careful while protecting their money. 

Over the year, it is possible that a hacker can steal millions of dollars worth of bitcoin, and the procedure of robbery will be by installing malware into hardware that contains the bitcoin codes and wallets, DDOS attacks during money transactions. The hackers are also capable enough to get access to the bitcoin wallet and steal every penny from it. 

A bitcoin wallet must have active malware, and firewall security as the hackers can use any method fit for them to hack the wallet. Even if the device gets infected, the funds might get misdirected while transferring it to some other place. Thus there will be a complete loss of wallet, and also, in the worst situation, the bitcoin may get held for ransom. 

Although, a strict security system can also hamper the process of bitcoin as it will make it less flexible than other payment processes such as debit cards, especially during real-world purchases. 

Consumer Protection

The best part about bitcoin is its benefits, and the drawbacks are similar. With a bitcoin, the name of the user can be anonymous, and it is also a disadvantage as it will lack the interference from the government. Therefore, the problem is, if someone tries to scam a person by using bitcoin the government, it will become difficult for the government officials to track them. 

Even when a customer uses traditional currencies during an online payment method like PayPal, they get the option of reimbursement of the money if they get scammed. Other online payment methods will have some policies that protect their users from getting scammed. Furthermore, a victim of scam gat lodge complains to the security agents of FTC, Better Business Bureau, and the National Fraud Center. But, with bitcoin, there is no consumer protection, and if a person steals the money, there is no other way to get it back. This is one of the key reasons for which businesses are reluctant to use bitcoin as a currency. As a businessman, they do not want to put their money at risk and also use bitcoin without taking proper protection from getting scammed. 

Till there is a secured procedure from preventing the scammers from stealing cryptos, most of the people will stay away from such digital currencies. 

Bitcoin Has Wild Fluctuations in Value

Cryptocurrencies have already been there in the market for a while, but recently it has gained more popularity, and people have started using it as an investment tool. The current market value of bitcoin fluctuates, and evens at times, the value of bitcoin drops down overnight. However, cryptos can be a good investment for the risk-takers due to its fluctuating nature, but it will also make it difficult to become a recognized currency globally. 

The fluctuation of the bitcoin makes it risky for the businessman to carry out any long term business. If the value of the money can be stabilized, there is no doubt that both the companies and the citizens will try to flock the currency for international businesses and to avoid government intervention.

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