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Bitcoin is the leading cryptocurrency that defies all expectations of a new currency and rises higher and higher in value and use. On the other hand, adopting this digital money as everyday money remains negligent among ordinary people. You can still purchase Bitcoin from bitalpha-ai.io and convert it to fiat cash.
This digital currency was still a technology reserved for a few cypherpunks at the beginning of 2010. But by early 2020, there were fewer and fewer people who had never heard of this virtual money. In 2020, there were nearly 29 million Bitcoin addresses open. Since users can open multiple addresses on the Bitcoin blockchain, it is difficult to estimate the exact number of Bitcoin users. However, in 2022, 84 million users meant that the number had increased.
Nevertheless, one thing is sure; this number is still minimal. Potentially, everyone across the globe could be interested in this digital money in the future. So, there is extraordinary growth in this electronic currency.
On the other hand, before the number of Bitcoin users increases and achieves mass adoption by the general public, there are significant improvements that this digital currency needs. Here are the main improvements that Bitcoin needs to attain mass adoption.
An Easy Fiat Currency Conversion System
Currently, the world still runs on government-issued conventional currency. Therefore, living off this digital currency without any conversion method into fiat is extremely difficult and not a workable option for most people.
An average person needs an easy way to buy this digital money to be a practical option. Also, many cryptocurrencies are only easily accessible through first acquiring Bitcoin. For this virtual currency to become dominant and widely accessible, the total reliance on Bitcoin must end.
Support More Transactions per Second
Mass adoption of this digital currency would translate to an increase in the number of transactions entering the Bitcoin network per second. Compared with Visa transactions which support 24,000 transactions per second, Bitcoin transactions are extremely low. Blockchain technology only supports seven transactions per second.
However, comparing Bitcoin and Visa is inappropriate as this digital money is decentralized while Visa is centralized. Nevertheless, the Lightning network is the perfect solution for the limited number of transactions to be validated per second.
The lightning network has micropayment channels that allow this virtual asset to handle many more transactions per second. Moreover, the lightning network will make this virtual asset more scalable as the number of nodes implementing it increases.
Reducing Transaction Fees
For the network to create new Bitcoins, mining has to take place. Miners make their computing power available to the Bitcoin blockchain to secure the network and allow the validation of transaction blocks. After successfully mining this digital currency, which involves solving complex mathematical equations, miners get rewarded with new Bitcoins. Also, these Bitcoin miners must pay a specific fee for their transactions to be validated. You can also choose to make the validation of your transaction a priority by increasing the amount of transaction fee you will pay.
The unexpected high fees for validating a transaction are creating a problem for the mass adoption of this virtual currency. You can’t imagine paying so much to use this digital currency as a medium of exchange or payment.
While presenting this digital money, it should resonate with most people to entice the world. The only way anyone will know why Bitcoin makes sense is for someone to tell them why.
Parting Shot
Bitcoin is a great innovation that has hit 150 billion in market capitalization in just thirteen years. Despite that, the number of Bitcoin users remains insignificant. So, if the Bitcoin network meets the above improvements, mass adoption will increase.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite. TaxGuru does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. By the use of the above information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof.
All Crypto Currencies are to be banned in India as they don’t have back-up and dealing is nothing but Gambling. Innocent publics are lured to invest and loose heavily.