Bitcoin is the new buzzword, but you may ask, is the Bitcoin an opportunity or a challenge? There are both advocates and critics of the Bitcoin, and they each have arguments to justify their position. Blockchain and Bitcoins are words that are on everybody’s lips these days but these are embroiled in a lot of controversies. According to some, the Bitcoin bubble will burst soon as did the dotcom bubble before this, while others feel strongly that Bitcoin is the currency of the future. The automated trading bots like bitcoin era are contributing to the rise of bitcoin trade by speeding the process.
Why is the Bitcoin an opportunity?
The Bitcoin and its founding blockchain technology may turn out to be the game-changer for many industries like healthcare, insurance, banking, and real estate.
- In the world of real estate, any process becomes lengthy and cumbersome because of the high degree of red tapism involved. However, since the blockchain is a decentralized distributed technology, it can do away with all such intermediaries or processes.
- As far as legal services are concerned, the Bitcoin may be used for creating a system for contractual payments; these many be automated to self-execute once the contract obligations are fulfilled. This will help to cut down on monitoring resources.
- In the field of Intellectual Property Rights, blockchain can be used to store records; any transfer or licenses can be conducted in a hassle-free manner that is also transparent and decentralized. Blockchain can resolve issues of revenues and ownership rights in the media and entertainment world.
- In the insurance sector, blockchain may be used by providers of insurance wherein the KYC regulatory compliances can be streamlined. Deloitte uses smart contracts for dealing with error checking and to ensure a smoother workflow.
- Blockchain will be perhaps the greatest use in the world of healthcare for streamlining processes for the patients. It will have digital records of all patients helping in automatic spending of health-related payments according to patient health plans.
These are reasons why you may consider the Bitcoin as an opportunity for the world at large, but there are challenges on the way.
- To begin with, there is a lack of regulations concerning digital currencies and protecting user security can be a big challenge. Bitcoin is said to be far more secure than other traditional methods of payment, but there has to be clear laws regulating this.
- The Bitcoin is very volatile and this casts a reasonable doubt on its future as an accepted currency. The stability will increase as the popularity of the Bitcoin increases.
- The mainstream adoption of Bitcoin is still uncertain. So, people are still not sure where exactly they can use Bitcoins.
- Bitcoin has been used for buying illicit weapons and drugs on the Dark Web and this has brought this cryptocurrency under the scanner. So, its reputation needs to be cleansed for it to be adopted by greater numbers of people.
- Many governments have banned the Bitcoin or have resisted its use in their jurisdictions, and this poses the biggest challenge to this crypto asset. This is why the Bitcoin community is finding it difficult to grow.