Challenges Towards Bitcoin being A Legal Tender
The Fame of Bitcoin was increased when El Salvador announced their plans of adopting bitcoin as a legal tender come September 7. Ever since they made this announcement , many regulators in the state did not like the idea and the international monetary fund are also against this plan, and they may be faced with exclusion from world body if they go ahead.
Below are few challenges towards bitcoin becoming a legal tender.
International bodies will not give permission to any country trying to make bitcoin a legal tender because bitcoin is still under deliberation on what it will bring to the world when used as a legal tender.
There will be an increase in crime rate because bitcoin is not annoymous and from a transaction , someone's wallet balance can be known and then he can be kidnapped and the money stolen. Also there is possibility of someone's entire savings stolen when the wallet is hacked.
Volatility : bitcoin is very volatile and if there is no good conversion strategy , the business owner will have to lose money if the price fall .
Do you think that these challenges are negligible towards bitcoin being a legal tender ?
Visa performs 2000 transactions per seconds, where as bitcoin can perform only 5 transactions per second. If a lot of people start using bitcoin just like the fiat money, there will be a congestion on the bitcoin blockchain. You might have to wait for a long time to confirm your transaction. I do not think bitcoin can actually become a legal tender.