The year 2018 hasn’t been positive for the cryptocurrency industry. Bitcoin has lost nearly 70% of its value compared to late January. This dip causes many debates, although proponents remain confident it is the future of money.
Can Bitcoin Be Money?
Warranting any Bitcoin-related optimism is becoming a lot more difficult during these troublesome times. With the value rising and falling regularly, it is not proving a stable form of value. As such, Bitcoin is turning into a speculative vehicle more and more. It has stuck to that label for some time now.
Using Bitcoin as money has been challenging. Very few companies accept BTC directly, mainly because of its volatility. Especially for retail stores, there are dozens of other alternatives available. Online retailers are slowly turning their back on the world’s leading cryptocurrency as well. None of these developments bode well for the future of BTC.
At the same time, there is a lot of potential waiting to be tapped. Bitcoin’s technology can be transformative in the financial sector. Blockchain provides a completely different paradigm for payments and exchanging value. It may not need Bitcoin to succeed, although using the two combined is still viable. At least, when the necessary scaling and payment layer comes to the network.
The Lightning Network Matters
Solving the issues Bitcoin faces will not be easy. The Lightning Network can address a lot of concerns in the years to come. This new payment layer provides scalability and instant transactions. It can create thousands of new use cases for mainstream consumers and corporations. Its development shows that Bitcoin is still evolving and growing after these years.
People often forget how new cryptocurrency still is. This new technology and financial system did not exist ten years ago. Although Bitcoin is not perfect, a lot of positive changes have been made. That alone warrants giving it the benefit of the doubt. Major banks have begun taking notice of Bitcoin and other top cryptocurrencies. This further confirms mainstream adoption is around the corner.
The impending nod of approval can make Bitcoin a lot more appealing. With help from the community, a broader adoption becomes possible in the years to come. A lot of things are going Bitcoin’s way right now, yet they go by unnoticed by the masses. A crucial time is dawning for all cryptocurrencies. The final fate of Bitcoin has yet to be decided. Still, new technological innovations to Bitcoin and its blockchain is helping pave the way for greater use and acceptance.
Do you think Bitcoin is the future of money? Let us know in the comments below.
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