Many people believe that Bitcoin will fail, but what do these concerns do with security? One primary reason is that it is not suited for small transactions. The Bitcoin network is not secure enough to prevent hackers from transferring currency without a user’s consent. Another primary reason is that many countries compete for investment and technology—those competing with each other need a neutral reserve asset to avoid being overrun by their rival. The main drawback of this technology is its inability to be easily regulated.
While governments want to make money, they cannot stop good ideas from being implemented. In addition, governments are power structures – they try to control things. These entities have vested interests in lobbying the government and making laws. However, this is not the case with Bitcoin since it is a software network, and it is not possible to regulate it. Instead, governments use their authority to regulate the economy.
A more fundamental issue is the lack of control over the system. Because there is no central authority, governments cannot control their money. If the government does not control the economy, it will stifle innovation. Furthermore, “mining” bitcoins is pointless busy work that produces nothing of value. In contrast, paper currency is more accessible and convenient. If it can’t be controlled, it will fail. So, why do we believe that Bitcoin will fail?