Despite several benefits Bitcoin also suffers from some drawbacks. Since Bitcoins are not regulated by any central authority most people don’t have trust in this digital currency hence it is not accepted widely. With the increasing speculative activities and terrorism, many countries have either completely banned Bitcoin trading or have imposed strict regulations on it.
Bitcoin prices are highly volatile. On the same day, you may witness it going from twenty thousand dollars to nine thousand dollars. This volatility makes it a highly risky investment. Bitcoin does not provide any protection to the buyers, for example, you placed an order from a merchant and sends him payment using Bitcoin and later on the seller do not send you the goods for all such situations once the payment has been made using Bitcoin you cannot reverse the transaction.
Being a digital currency there are many cyber threats to which Bitcoin is exposed to. Many Bitcoin exchanges have been hacked in the past which has resulted in the loss of many cryptocurrencies worth million dollars within few hours. Another major drawback is that since Bitcoin is not regulated hence once your Bitcoin is hacked or stolen then you cannot claim a refund of your money from anybody.
Bitcoin has opened ways for people with the intention to invest their black money and support unlawful activities this is a major threat to our community because it will increase crime and illegal activities. The government of many countries is worried about the increasing popularity of Bitcoin hence they have started to impose strict regulations. In some countries, the rules are so tight that they have banned the purchase of Bitcoin using debit and credit cards.
According to Ganesh Godase and Pritesh Saitwal it’s not difficult to launch a cryptocurrency there are many cryptocurrencies that are already in existence and many new cryptocurrencies are being launched frequently, therefore, the day is not far when Bitcoin will lose its popularity and some other cryptocurrency will take its place.
By looking at the various drawbacks of Bitcoin it is tuff to predict its future. It is very uncertain to understand the direction towards which Bitcoin will move. By looking at the returns which Bitcoin was able to generate last year many people have started looking at Bitcoin as an investment opportunity where they will be able to generate hundred percent return on their investment within few days. Investment in Bitcoin is a relative choice.