The idea behind cryptocurrencies was to defy traditional financial and banking systems and give everyone access to money. However, with the rise of crypto-assets such as Bitcoin, cryptocurrencies have evolved into more than just an alternative form of investment, emerging as one of the major forms of currency that also serves as an excellent inflation hedge. It is still unclear what investors see in digital currencies when they decide to invest millions of dollars of their hard-earned money, but it is clear that digital assets now account for a sizable portion of investor portfolios.
The increasing use of digital currencies has alarmed governments, who fear that the decentralized market will rob them of their ability to provide and create money! There is a reason why regulators are so eager to impose their predetermined frameworks and eventually discourage investors from participating in the cryptocurrency market; Bitcoin is currently enormous! It is impossible to simply prohibit investors from purchasing Bitcoin. But what if Bitcoin didn’t work out? What if blockchain technology was never able to stabilize Bitcoin? What if Bitcoin and blockchain didn’t exist at all?
These are, to say the least, unfavorable circumstances. These questions may frighten Bitcoin heavyweights, but the truth is that they should be prepared to face the most adverse conditions because volatility is a key feature of almost all cryptocurrencies, including the largest ones like Bitcoin. Even though the market has reached several record highs, there are still concerns about its long-term success plans. Financial analysts and economists are concerned about the impact of cryptocurrencies on the market and society, but Bitcoin and blockchain technology as a whole can fail at any time.
Are Bitcoin and Blockchain too well-known to fail and cease to exist?
Several influential tech titans, such as Elon Musk, have always been strong supporters of cryptocurrencies, and his tweets have influenced far more crypto investors than they should. These incidents, however, do not justify the fact that cryptocurrencies are not supported by policymakers and are extremely volatile.
One of the many reasons for Bitcoin’s popularity is its volatility; the more institutional and individual investors use it, the slower and more expensive it becomes. There are no specific reasons why Bitcoin is the most popular cryptocurrency among prospective cryptocurrency buyers. It does not even provide complete anonymity. While BTC has failed to achieve several of its goals, it remains a speculative investment.
However, the same cannot be said for blockchain. The technology provides several advantages to global businesses, allowing them to conduct transactions that would otherwise be impossible to conduct more securely. If blockchain technology ceases to exist, modern businesses will be forced to return to traditional methods of transaction, which may jeopardize the privacy of customers and businesses conducting the operations.
In a nutshell, the extinction of Bitcoin and blockchain would be disastrous for investors who have invested millions, businesses that conduct operations based on digital assets, and countries that have acquired or are considering acquiring Bitcoin as legal tender.
Will anti-cryptocurrency governments one day seize control of crypto?
Anti-cryptocurrency governments are attempting to disrupt the global crypto market in any way they can. They do, however, have the authority to enact stringent legislation that may eventually discourage investors from purchasing cryptocurrencies. For example, if governments truly want to stifle the growth of cryptocurrencies, they should follow China’s lead and prohibit cryptocurrency transactions. However, the golden age of monarchy has passed, and democracy is the only way forward.
So, given the current involvement of these technologies in our daily lives, answering the fundamental question of what happens if Bitcoin and blockchain fade away is difficult to imagine. However, if it were to occur shortly, it would be a devastating occurrence.
