When bitcoin first came into existence, Satoshi Nakamoto launched the Digital people saying that bitcoin would be a peer-to-peer payment method. Apart from being a peer-to-peer payment method, it was also introduced as a recent alliance system for making payments across the globe. Anyone sitting in any corner of the world can use bitcoin to make transactions and facilitate payment. There is no requirement for any intermediary or bank to function for bitcoin.
Anyone can use it without any interruption from any third party because the government was not the one to control any transaction of bitcoin. On the other hand, bitcoin was free of government influence, making it an incredible currency if people use it correctly.
However, everything that came into existence evolved, and so did bitcoin. The primary purpose of creating bitcoin was not to make it an investment model but was to facilitate it as a transaction medium. However, people became greedy about bitcoin, and the primary purpose of creating bitcoin faded.
Instead of focusing on making bitcoin a payment method, people started to trade in it. As a result, the focus of bitcoin shifted from a digital payment method to an investment vehicle. If you want to know more about bitcoin, sign up to crypto superstar today. Nowadays, most people across the globe are not using bitcoin as a mode of making payment but for storing their wealth.
When they can store their wealth and withdraw more money in the future, why would they spend it on purchases? It is one of the most important reasons because of which the prices of bitcoins keep on fluctuating and providing people with returns.
The people who tried to use bitcoin for the first time in the whole world were motivated by the financial crisis in 2008. The main reason behind the creation of bitcoin is to provide them with money that is entirely free of any financial crisis and government control.
However, the people are greedy about creating a new method of money that can be used across the whole world as a financial system. However, the significant people who invested their money in bitcoins were speculators and looking forward to taking advantage of the opportunity.
Due to this, bitcoins started getting traded on the exchanges, and some of the most volatile cryptocurrencies were created. It led to the use of bitcoin as a financial instrument that had a very volatile nature because of the trading activity done by speculators.
Everything in the cryptocurrency market made it away from the economic use case. Then, the primary purpose of creating bitcoin was to make it the payment method, but now, it was nothing more than a financial vehicle for those who wanted to speculate and make money out of it.
If anyone wants to crave making bitcoin as a mode of payment again, it has to be scalable enough to support any activity in its nature. Blockchain technology is the basis for facilitating a bitcoin transaction, and it is still struggling. Some global developers are looking forward to promoting solutions to the decentralized Blockchain technology, which facilitates secure and scalable transactions.
As long as it does not become scalable, it will be tough for bitcoin to make transactions and payments across the globe. When there is an upper hand towards the speculators, they will keep dictating value for bitcoin, further increasing the volatility in bitcoin prices.
The high degree of volatility that bitcoin has at its prices makes it difficult to become a mode of payment. Due to this volatility in the prices of bitcoins, the other stable coins are proliferating. Business transactions cannot occur because of the high degree of volatility in payment options. There is a requirement of certainty and stability in the businesses, which can only occur if the prices of the payment mood are stable.
However, as bitcoin is very volatile, it allows the other stable coins to take place as a payment method. Due to this, many other stable coins have been created after bitcoin. Some cryptocurrency exchanges are also launching their coins to take the market with their digital currency. Huge investments are being made in cryptocurrency by some global institutional players, making it difficult for bitcoin to become what it should be.
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