The hype around bitcoin is still going strong. It is the first crypto to have a large fan base, internationally. And that fan base is growing and finding more and more followers who are discovering the benefits of bitcoin and joining the network: both the technical network and the social network. They invest in bitcoin and make payments with it. Bitcoin is a digital currency based on a decentralized network.
blockchain. Unlike traditional currencies, bitcoin is not controlled by a central authority, but is mutually controlled by a network of servers. No one can influence or reverse the payments made. Anonymity and security are the strongest arguments for using Bitcoin. Security because the decentralised system is less vulnerable to hacking and fraud than traditional payment systems. In addition, Bitcoin offers users the possibility to make anonymous transactions, which is an important factor for many people.
The big problem with Bitcoin is that it is not easy to understand. It is not intuitive. If you don't have technical or financial knowledge, you have to understand a new world, you have to gain trust and you have to learn a lot of new things. But first, yes, you have to learn about bitcoin; many people see it simply as a crypto-currency, something for tech nerds and online gamers, but not as a real alternative to fiat currency.
We still have a long way to go. There are still many challenges to be overcome in order for bitcoin to reach its full potential. Of course, realising its full potential requires, in particular, high distribution and social acceptance.
What needs to change for bitcoin to grow?
First of all, a larger user group is needed. For Bitcoin to realise its full potential, it needs to be used by many people. And not just in the IT or financial sectors, or in certain strata of society, but in society as a whole. If Bitcoin is used in all social strata and groups, social acceptance will also increase accordingly.
But how do you reach a larger group of users?
To reach a larger group of users, you need to provide low threshold information. Information about what bitcoin is. Bitcoin is very complex, even for those who know it. How complex must it seem to those who have never had contact with bitcoin or the blockchain? Bitcoin needs to be communicated in an accessible way, it needs good sources of information that everyone can easily find and where no false news is spread.
This is an absolutely huge challenge, as there is hardly any source of information that reaches everyone. Information alone is not enough either. Trust is also needed.
Can I trust Bitcoin?
Bitcoin must appear secure and trustworthy. We know that the Bitcoin blockchain is the most secure way to secure data. But sometimes other people don't know this and hear about attacks or theft of Bitcoins. This doesn't really promote trust in the technology. So building trust takes time. Time during which social acceptance can develop.
Social acceptance is growing because many people are using it, and therefore many people trust the Bitcoin blockchain. However, to ensure that many people trust bitcoin, it should not fluctuate so much. The large fluctuations that still exist at the moment hinder trust and therefore widespread use and social acceptance. People see bitcoin as a speculative investment instead of using it as a means of payment.
Conclusion: The strong fluctuations in the price of bitcoin must stop, only then will social acceptance increase.
What role do political decisions play in the acceptance of Bitcoin?
Social acceptance is also enhanced by the fact that it is politically accepted or desired. As bitcoin is not controlled by a central authority, there are no clear rules and regulations governing its use. This can increase concerns about cybersecurity and consumer protection, especially when it comes to protecting user data and combating fraud. In some countries, bitcoin is banned. Of course, this can be an incentive to use it, but in general, people perceive a ban as a warning and comply with it. If international politics accepts bitcoin, people who trust their politics will be more likely to do so.
Other socio-political issues are also related to Bitcoin. For example, the issue of sustainability. It is increasingly important that the technology used is sustainable. Bitcoin must therefore be sustainable. The electricity used for the decentralised system worldwide should ideally be green. States should therefore promote green energy so that it is more attractive for miners to use sustainable electricity.
What are the other pitfalls?
Then there is the argument that Bitcoin is compared to other blockchains. Why Bitcoin? Why not Ethereum? Bitcoin is slow, Ethereum is much faster, they say. Our society is built for speed.
Everything has to be fast and cheap. So it seems logical that society prefers faster systems. That the slow method of bitcoin has value, namely proof of work, is something that many cannot understand. It is a very difficult and time consuming challenge. To explain the difference between proof of work and proof of stake, we first need the social interest in dealing with such issues.
Another important point is that people have to trust technology more than people. Everyone knows that people make mistakes, but many people still find it difficult to trust technology more than other people. The reason is that people have emotions. They can understand and justify the decisions of others, even if they are irrational. Because emotions can be perceived with empathy. People are able to forgive mistakes. People are less emotional about a machine or technology; after all, they can't put themselves in its place. That's why bitcoin has a hard time gaining acceptance: Bitcoin has to gain people's trust in its technology. It takes a long time to gain that trust. People are more likely to trust if other people do the same. Bitcoin needs to spread, only then can it reach its full potential. This brings us back to the first point, the highest user group.
Conclusion
In summary, it can be said that the road to a socially accepted Bitcoin world is long. There are many reasons why Bitcoin is not yet widespread. These include lack of trust, price fluctuation, lack of information and sustainability. However, if something moves and changes on all the points mentioned, it will promote positive communication about Bitcoin, the transparency of the technology and therefore the overall value of Bitcoin.
