Challenges Facing BTC Mainstream Adoption
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You cannot deny that BTC has come a long way since its launch back in 2009. Although with increased acceptance than a decade ago, it seems like there is a lot needed before BTC’s can achieve mainstream adoption. That means a point where BTC can replace money in purchasing services and goods. Although many renowned companies now allow their clients to use BTC as a payment option, here are some obstacles against Bitcoin adoption.
You cannot leave out volatility whenever talking about the crypto market. Bitcoin has witnessed wild volatility since its launch. A coin worth $20 today can worth millions next year. Keep in mind that volatility never ceases in this market. Bitcoin has had an upward trend despite the high volatility. Although expert investors know how to use volatility to their benefit, most individuals remain skeptical about BTC due to its unpredictability nature. Most people will venture into the Bitcoin market if the asset can achieve more stability.
Buying, selling, and using Bitcoin is much easier today compared to some years back. However, its user-friendliness is not enough to attract mainstream acceptance. Though expert traders can find Bitcoin transactions undoubting, the whole thing can be challenging to newbie crypto fans.
To purchase BTC, you will have to open a crypto account with an exchange offering Bitcoin services. In most cases, you will have to wait for some days before your transaction completes. You can find individuals who can purchase different virtual products online but experience challenges to accomplish BTC dealings. The best thing is that the network keeps o upgrading to ease the process. The asset will draw more people by introducing one-click services to attract even less tech-savvy clients.
Under the current regulations, IRS lists cryptocurrencies like Bitcoin as intangible properties. That subjects virtual coins to capital gain tax. In cases where you purchase BTC and trade it for profit, you should report the gains. To make it worse, you will face taxes whenever you use BTC to make purchases. For instance, if you use $10 to pay for your coffee drink using BTC that costs you $7, the three dollar profit will be capital gains.
You can find many companies allowing their consumers to use Bitcoin payments. Also, several countries have contradicting views on BTC endeavors. For instance, China banned its financial institutions against cryptocurrency payments. It is no doubt that BTC has a long way to achieve more acceptance. If large payment firms can allow Bitcoin transactions, digital coins will gain more adoption.
Online security is among the dangers facing the crypto market. Every year the virtual market loses millions to criminals. You might have heard about the theft that surrounds the Bitcoin market. Most individuals are hesitant to jump into the cryptocurrency waves due to theft risks. The best thing is that exchanges and industry specialists work hard to make your Bitcoin activities secure. However, the security protocols can be complex and require more market knowledge. You have to ensure more effort for your security when in the crypto market. There are many cases where users lost their bitcoins after an unauthorized individual accessed their account. If that happened before, it would probably occur in the future. Theft cases in the bitcoin market repel most people interested in crypto dealings.
Although digital currencies have been in the financial industry for more than one decade, they are in their infancy. Bitcoin networks should solve several problems to achieve high acceptance in the market. Keep in mind that BTC faces inexhaustible challenges. For instance, the constant government regulations affect BTC acceptance in some regions.
However, experts work day-in-day-out to solve most of these issues. You only need to be vigilant since it can take time before BTC achieves its target of market acceptance. Moreover, act with caution when in the Bitcoin market to avoid scams and enjoy returns.
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