Why Bitcoin Still Suffers From An Identity Crisis In 2020?

Introduction

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For a very long time, a number of people, including some billionaires of repute have used one or the other terms to refer to Bitcoins and other cryptocurrencies.

While it is true that Bitcoin as a store of value has seen marked improvements, the negative comments do not seem to go away. The question is- Why?

A financial asset, which has returned 100x returns in a short span of time should have been able to shed its negative tag by now. But in reality, it hasn’t.

In this article, we debate whether or not Bitcoin still suffers from an ‘Identity Crisis’ in 2020? We look at some of the leading debates around Bitcoin’s credibility and identity and try to help present and future traders and investors with the information.

Is Bitcoin a Store of Value or a Simple Currency: What you should know

There is no doubt that Bitcoin’s proposition as a store of value has been well-documented. The crypto as a financial asset has surpassed some of the most critical expectations and has been delivering some fantastic returns for its investors.

Even at the height of the pandemic, Bitcoin far outpaced any other financial asset including gold in valuations. This boosted investor confidence leading to the entry of many of the biggest wealth management and investment firms in the world into Bitcoin.

However, while Bitcoin as a store of value is slowly gaining as a credible investment proposition, the same cannot be said of the same in a currency form. The volatility of the prices makes it too risky for merchants and businesses from starting to accept it as a form of payment.

In addition, there are just not enough credible ways like Bitcoin ATMs all over the world, which can allow for easy movement from fiat currencies to Bitcoins or any other crypto.

Some people think that Bitcoin is just like gold and does not hold any currency value. Others believe that it can only be used as a form of payment, without having any inherent store of value.

Is Bitcoin’s Identity Crisis preventing it from going Mainstream?

Yes! Unless Bitcoin and other cryptocurrencies are not able to make their way into growing and developing economies like India, there is no question of its popularity rising to the same levels as Digital Payments or Wallets like Amazon Pay, Google Pay, and others.

It is essential that a constructive step is taken forward by the community, which takes into account offline presence as well. We are talking about merchants, ATMs, and other physical markers, to help in popularizing Bitcoin payments.

Some government insiders state that Bitcoin’s own problems with its network, open-source platforms, and anti-social elements who demand them in hacking incidents are likely to trigger its own downfall.

Being outside governmental regulations means that people think that there is no safety net in the event something goes wrong. This is truer for developing economies that are experiencing their first brush with digital technologies and the internet.

According to the BitIQ Login, the onus on improving the perception lies within the community. The network should work to ensure presence outside exchanges and platforms. This will allow for greater awareness and more participation.

The Final Word

It is true that the entire crypto industry is still very much in its infant stage. Technologies like Blockchain have still not being picked up by many for the potential it carries. There is a lot, which can be done to help change the identity issue of Bitcoins and other cryptocurrencies.

Bitcoin, its concept, and its applications are some of the finest the world has ever seen. It seeks to empower people who have not been included in the world’s financial systems.

As a store of value and as a currency, there are many things, which need to be done to ensure that it is as popular with normal individuals as it is with the billionaires of the world.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.