From January 2018, the prices of bitcoin have been on a downward trend falling from $20000 up to $4000 a few days back. Bitcoin is experiencing some serious issues which are hindering the adoption of bitcoin throughout the world. Here are the top 5 points that prove that bitcoin may fall miserably before rising again:
1. Cyber Attacks and Hacking:
Cryptocurrency space has experienced some serious hack and spams in the past and the same may also occur in the future as well. These include cryptocurrency exchange hacks, initial coin offering scams, sim swapping etc. that have created a deficient reputation of the currency.
2. Lack of Regulation:
The governments of different nations have regulated cryptocurrencies such as bitcoin according to their own set of norms. With some countries such as Malta embracing the digital ledger technology and promoting cryptocurrency related businesses and other countries such as India and China putting a strict ban on the use of cryptocurrencies, the future of cryptocurrency regulation remains unclear. If someday a majority of nations impose a negative regulation on digital assets then it may result in just a handful of people using crypto as payments which may lead to a serious decline in the prices.
3. Miners backing out:
Bitcoin miners grew massively when the price was rising. More and more companies started to mine bitcoin as mining turned up to be quite profitable in comparison to other businesses. With a fall of bitcoin prices this year, the hashrate of the BTC fallen to a very low rate of just 34 quintillions which is nearly 50% less than the highs of 62 quintillions. The fall in hashrate is because of the ongoing Bitcoin Cash hash wars to some extent. Also China, the country where the largest bitcoin mining firms exist has increased the electricity rates for miners. All these conditions have made bitcoin mining unprofitable.
4. Wars in cryptocurrency space:
Bitcoin Cash Hash Wars resulted in a massive downfall of the prices in the last few days. The Bitcoin network survived the Segwit2x which was not able to break BTC and many other forks as well. But the continuous wars have created a feeling of Fear, Uncertainty, and Doubt amongst newcomers in the cryptocurrency space.
5. Economic Crisis:
Analysts predict that a global recession is on the way and will surely hit every market including cryptocurrency in the upcoming years. Stocks, Real Estate and other investments including cryptocurrencies may dry up. Bitcoin has survived a number of attacks since its inception but a global economic crisis may slow down the adoption.