Bitcoin has several downsides that could rapidly lead to value loss, infers Erica Alini of Global News. Research by the University of Texas found that the cryptocurrency’s rapid rise was partly due to market manipulation. Such currencies rely on people to believe in them to continue functioning. While this also counts for real money, the de-centralized nature of cryptocurrencies means that they could lose value at incredible speeds. With physical currencies, central banks can regulate the supply of cash to stabilize their value. Bitcoin is and remains a huge gamble. The lack of an authority that oversees it could see it crash far harder than a physical currency.
Although highly volatile, Bitcoin is set to do well in the long-term, believes Nick Spanos of The Hill. The fact that it offers an alternative to the traditional banking system gives it incredible potential for innovation and disruption. Even the resistance of big banking institutions simply pushes Bitcoin innovators to smaller countries with less of a stake in maintaining the status quo. This is already happening and brings them several benefits. Bitcoin’s nature of de-centralization allows people to engage with it as they please. This offers incredible freedom and potential for profit but also opens the door to slumps in value. Still, it is here to stay, and will continue to grow.