These ten dangers threaten Bitcoin in the coming years
2 min readThe American investment firm VanEck offers its customers a Bitcoin ETF, but sees numerous risks for the mother of all cryptocurrencies.
The following developments could have a negative impact and lead to Bitcoin’s failure by 2050
- Too much energy consumption: Bitcoin mining could lead to miners using up to 15 percent of the electricity produced worldwide. Innovations must ensure that this massive energy consumption during mining is reduced.
- Mining becomes unprofitable: BTC miners make a living from selling the Bitcoins they have mined themselves. If this is no longer profitable due to a lack of demand, there is a risk that they will give up.
- Expansion of the technology: If the run on BTC continues, there is a risk that the technology will no longer be able to cope with it.
- Increased competition: Bitcoin has long faced massive competition. This comes from established cryptocurrencies as well as new coins such as MemeBet Token. A new cryptocurrency could overtake BTC.
- Split: The community does not always agree on how BTC should evolve. This could lead to a split.
- New monetary policy: If politicians decide to tax BTC owners, this could have a negative impact.
- Regulation or ban: It is not only recently that monetary authorities have felt threatened by BTC. Bans have already been discussed in the past. If BTC becomes even more successful, bans could be imminent.
- Dominance of the financial world: If Bitcoin ownership in the financial world continues to increase, there is a risk that a few big players will begin to take control.
- Attack and theft: BTC has long been the focus of hackers. But their efforts could be outdone by state actors. If governments massively buy BTC and throw it onto the market at the same time in a concerted action, this could destroy the system. This could also happen if someone buys up all the Bitcoin miners and uses this power for themselves.
- Software failure: Ultimately, according to VanEck, BTC needs to upgrade in the areas of sustainability and encryption. This is the only way to avert the risk of a hack by future quantum computers.
