As a currency, Bitcoin fails to provide stability that is essential for its success. The highly volatile market value of the cryptocurrency makes it difficult and risky to use as a medium of exchange since its value could drop significantly in a matter of hours or days.
This poses an issue for merchants, who are unwilling to accept payments in Bitcoin due to the risk of its rapidly changing value, and for consumers, who may be hesitant to use the cryptocurrency given that they could lose money due to its erratic market.
Moreover, Bitcoin’s lack of stability means it is not suitable as a store of value since its inflation-adjusted value may decline significantly in a short period of time. The uncertainty associated with Bitcoin’s market value and its inability to provide long-term stability makes it a poor option for individuals who wish to protect their savings.
Additionally, the lack of an overseeing governing body and central bank means that no one is enforcing any regulations or ensuring accountability, which can lead to serious issues such as fraud and scams. Furthermore, this lack of regulation leaves individuals vulnerable to scams, as there is no one constantly monitoring activities related to Bitcoin.
Ultimately, Bitcoin’s lack of stability and the potential for fraudulent activity makes it an unsustainable currency in the long-term and ultimately doomed to fail. It cannot provide any assurance or security against financial losses, leaving its future prospects hazy at best.
As a writer, Johnny is an advocate of blockchain technology and cryptocurrency in general. He writes about all things from cryptography to economics, with a focus on how it applies to cryptocurrencies. He is also passionate about writing about topics such as decentralization, open-sourced software development, and copyright law.