In today’s modern world, digitalization has occupied a prominent place, and everything is getting modernized and digitalized. The most significant example of digitalization is the advent of digital currencies such as bitcoin, litecoin, etc. There are various cryptocurrencies now available in the market, but bitcoin is the first-ever digital currency introduced in the world. Bitcoin gained a lot of popularity in its initial stage and attracted a lot of investors. Bitcoin works over a chain of network and technology known as the blockchain. Unlike the traditional local currencies, there is no authority having control over bitcoin. It is entirely controlled and managed by its investors.
Bitcoin gained massive popularity in its initial stage and changed the face of the money market. People were more interested in investing in bitcoins, and it was called the Bitcoin Era. As time passed, the popularity of bitcoin diminished as many other digital currencies came into the market. The plunge in the popularity made the investors skeptical about the future of bitcoin, and most of them believe that bitcoin is going to fall down in the future. Various reasons support their beliefs and indicate towards the downfall of bitcoin.
Reasons for the bad future of bitcoin
Most of the officials don’t believe in bitcoin and have less trust in it. The policies and regulations of the government keep on changing, especially the rules related to the cryptocurrency market. Some governments have a lenient approach towards bitcoins, whereas some governments have a strict approach towards it and are willing to ban bitcoins completely. Most of the believe bitcoins to be a fraud and are not willing to make it legal. This is a bad sign for the future of bitcoins. There are quite good chances that the governments could put a ban on such cryptocurrencies. Adding to it, seeing the demand and interest of the investors’ governments may launch their digital currency, which is also bad for the future of bitcoin.
The interest of the investors
Bitcoin has a considerable hype in the starting and attracted a lot of investors quickly, but now the interests of people towards it is fading away. Lack of interest leads to low demand, which won’t allow the prices of bitcoin to rise again. Low prices don’t attract any investor; that is why the future of bitcoin is considered to be dark. The lack of interest of the investors has also affected the potential of bitcoin adversely. The bitcoin wallet creation rate has also plunged, which is a clear sign that people are no more interested in bitcoins, and it is expected to witness a massive fall in the future.
The high cost of mining
The cost of bitcoin mining is rising, and at the same time, prices of bitcoin are falling. It is one of the primary reasons why the interest of people is bitcoins is fading away. No one wants its cost to be more than the profits. Mining was a great thing earlier, but the fall in the value of bitcoins has made it a costly affair, and no one wants to get into it as it will give them losses nothing else.
The people in the market speculates with the bitcoins as they increase the rate to attract the investors, and once they are successful, they inform the trader to sell at a high price and then make the price fall.