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The three biggest threats to Bitcoin!

The three biggest threats to Bitcoin!

Anant Kumar's photo
Anant Kumar
·Nov 20, 2018

Bitcoin is currently one of the most popular cryptocurrencies in the world which is being treated more like a security than utility token. It was supposed to be the decentralized digital currency without any central banks controlling it. However, as the transaction fees of the Bitcoin token increased, users and businesses have stopped using it. The fate of the cryptocurrency now completely depends on how the market and the eco-system will change in the near future.

I am a great fan of Jimmy Song, one of the early Bitcoin developer. He recently hosted an AMA on Hashnode and I loved reading his answers. Read it to get more insights into the Bitcoin ecosystem.

Here's what he thinks will be the biggest threats to the Bitcoin (well, I am pretty active on various crypto forums and I have heard many experts believing the same).

  1. Lack of developers
  2. Governance Takeover
  3. Hardware breakthrough

Many would agree that the lack of developers will result in more adoption of the Bitcoin. Less number of projects and products using Bitcoin will result in less utility of the token. This eco-system needs good developers building innovative dApps.

Governance takeover: Think of something like Segwit2x. It was a proposed hard fork of the cryptocurrency Bitcoin. The fork was slated to occur on 16 November 2017 but was canceled due to lack of consensus. The fork would have increased the block size to 2 megabytes. Governance takeover like Segwit2x will result in losing more control of the Bitcoin ecosystem.

Finally, hardware breakthrough. Think of something like a 2nm chip fab that can produce ASICs 100x more efficient than current generation ones for much cheaper. Those can be potential threats to the Bitcoin.

Please see this is Jimmy Song and other experts personal point of view. I have tried to summarise the opinion in the form of this article.