Bitcoin (BTC) has been interesting to watch as of late. In 2017, the king of cryptocurrency experienced an astronomical rise in value. However, 2018 hasn’t been so friendly for Bitcoin. In fact, the cryptocurrency has been feeling some serious pain, falling from $13,788 to today’s price of about $11,157. So, what’s the deal? Why is it that BTC is taking a dive and is it possible that the Superman of the cryptocurrency industry can overcome its kryptonite? Today, we’ll talk about the issues the cryptocurrency faces, what BTC is doing to take control over the situation, and what’s next for Bitcoin.
BTC Faces 3 Major Complications
At the end of the day, all of the pain that Bitcoin is facing in the market at the moment can be broken down into three issues the digital coin is facing. Here they are:
- Regulation – With decentralized cryptocurrencies continuing to gain rapidly in popularity, governments around the world are working to regulate the market. However, because of the decentralized nature of Bitcoin and other alt-coins, regulation is a bit tricky. Nonetheless, China and other Asian regions are expected to expand regulation relatively soon while other large nations work to follow.
- Transaction Limitations – With BTC becoming so overwhelmingly popular in the finance space as a whole, we’re starting to see the bigger issue, and what many would call Bitcoin’s Kryptonite. At the end of the day, the blockchain can only process so much data, and because of the structure of the blockchain and how BTC lives within it, these data limitations lead to transaction limitations. These days, we’re starting to realize that the Bitcoin blockchain simply isn’t built to handle the massive amount of demand we’re seeing with Bitcoin.
- Competition – There’s no question that Bitcoin was the innovative cryptocurrency that led to the entire cryptocurrency market as we know it today. However, Bitcoin is quickly losing market share as competing cryptocurrencies start to take their piece of the pie. In fact, Bitcoin accounts for about 33% of the cryptocurrency market share today while it accounted for more than 60% just two months ago.