Why Bitcoin is not yet a Global Currency

By Enterprise Security Magazine | Tuesday, July 07, 2020

Bitcoin CurrencyThe popularity of bitcoin is increasing rapidly, but there are many security issues that need to get solved before making bitcoin a global currency.

FREMONT, CA: The popularity of bitcoin has increased because consumers can purchase things with it across the world, and they do not have to change currency. People can also stay anonymous and do their own business without any interference from government agencies. Although the popularity of bitcoin has increased rapidly, various issues are preventing the nations from accepting it globally. Before cryptocurrencies are made a standard part of life, there are few problems that need to be addressed. 

Bitcoin Security Risks

Every online business has its risks, and unfortunately, even bitcoin is not immune to the dangers. Users always have to be alert about scams, theft, and malware, as it can happen anytime. In this era of technology, digital crime has become a constant threat. As the existence of cryptocurrencies is in a digital state, the users have to be extremely careful to protect their money. 

Over the years, a hacker can steal millions of dollars worth of bitcoin, and the procedure of theft will include installation of malware into hardware holding the bitcoin codes and wallets, DDOS attacks while money transactions, and also gaining access to the bitcoin wallets and stealing everything inside it. 

Whichever device is used to get access to a bitcoin wallet, it needs to have active malware and firewall security. If the device is infected, it may lead to funds being misdirected while sending, complete loss of wallet, and in the worst case, the bitcoin being held for ransom. 

However, as a strict security system also has its disadvantage on bitcoin as it makes it less flexible than any other method of payment, such as debit cards, mainly when it is about real-world purchase. 

Consumer Protection

The most exciting part about a bitcoin is that its most significant benefit and biggest drawbacks are the same. The advantage of it is users can use it anonymously, and the disadvantage of a bitcoin is its lack of interference from the government. Here, the question of what will happen if someone scams a person while they are using bitcoin arises. 

When the consumers are using currencies with online payment methods, such as Paypal, there are options like reimbursement to get back the money if they get scammed. Other online portals also have some policies that are designed to protect their customers from getting scammed. Moreover, a victim of a scam can file complaints to the security agencies, which include FTC, Better Business Bureau, and the National Fraud Center. However, in the case of bitcoin, there is no such consumer protection, and if someone steals the money, there is no possible way in which they can get it back. This is the crucial reason due to which maximum businesses are scared to use bitcoin as a currency. The businessmen do not want to put themselves at the risk of losing money and use bitcoin without taking any extra step to protect them from getting scammed, and these steps can also be expensive. 

Until or unless there is a secured process to prevent the scammers from stealing bitcoin from the consumers, most of the users and businesses will stay away from cryptocurrency. 

Bitcoin Has Wild Fluctuations in Value

Although cryptocurrencies have been there for about a decade, recently, people have started using it as an investment tool. However, the current market value of bitcoin is fluctuating wildly, and sometimes the value of the coin is dropping overnight. While the fluctuations can be a good investment for the people who love to take risk-takers, but the same reason makes it impossible to become a recognized global currency. 

The fluctuating nature of the bitcoin makes it dangerous for the business personnel to conduct any long term business with it. Whenever the value stabilizes, there are high chances that both private citizens, as well as companies, will flock to the currency as a means to conduct international business and also avoid governmental barriers. 

While it is doubtful that in the near future, whether people can purchase their weekly groceries or a cup of coffee with bitcoin, but if the value of the currency stabilizes, it has implications for large purchases. Most people are investing in cryptocurrencies for their retirement or using them to purchase a home or a car. 

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