Bitcoin's remarkable merits that place it above the configuration of traditional banks are without a doubt, the best and the ideal type of services that people have been waiting for lately.
However, everything related to Bitcoin is not all pink. There are a number of drawbacks that can hurt your future and put your expectation of redefining the face of digital finance in chaos. Bitcoin is commonly known as one of the best investment assets available due to its rate of fluctuations in value. The fluctuation rate paints a fuzzy future and limits its usefulness to investor portfolios.
Assuming a watch is selling for 1 BTC, and after a while, it returns for some reason at a point where the value has fluctuated, will the seller return exactly 1 BTC or will it have to calculate the current value? Bitcoin's high volatility makes it difficult to integrate into the financial world as a primary medium of exchange. Currently, Bitcoin is not backed by any fiat, and the question of which currency BTC should be pegged to properly compare the valuation will open the debate without reaching a consensus.
Bitcoin is not guaranteed a minimum price. This puts you at risk of a future decline in valuation when a group of whales gathers to dispose of the asset. There is no centralized body that provides a framework for its operation, which will end up burning investors who allocate a large part of their assets as investment.
Bitcoin does not provide buyer protection, as the irreversible transaction feature makes it impossible for funds to be returned when the goods are not delivered as promised. This can be resolved by relying on a third-party escrow service. However, this will discredit your operation as it can take over the configuration of traditional banks.
It is true that each technology is at least somewhat hackable. The world would be on high alert as Bitcoin may contain unexploited flaws after it has been widely adopted. Bitcoin and other cryptocurrencies rely heavily on complex mathematical operations to function smoothly. This, being Bitcoin's strength is also a weakness.
Around October 2019, Google launched a Quantum Computer capable of solving complex mathematical calculations in seconds. Interestingly, the Quantum computer is capable of accomplishing in just 200 seconds what powerful computers will use 10,000 years to solve. This means that Bitcoin and cryptocurrencies that are based on complex mathematics cannot withstand the test of time.
It is up to the community to find solutions to prevent possible future setbacks.