Whether Bitcoin is a scam or not is a question in the minds of most people when they first learn about cryptocurrency. As a result, they ask questions related to how bitcoin works, how safe it is, whether people can make real money off Bitcoin, and how one can invest in it? This Shopify SWOT analysis of Bitcoin aims at answering different questions from different people.
Strengths: Can’t Be Tracked
Bitcoin utilizes a blockchain network between the sender and the receiver and only these two parties are involved. Since no third- party is involved, Bitcoin is tax-free and is subject to no regulation from government. Moreover, since Bitcoin isn’t an institution, it survives even when the economy crashes.
Weakness: Slow Transaction and Accessibility Loss
When it comes to transactions involving Bitcoin, you got to be patient. The entire process is quite slow. Moreover, the more people use it, the slower the transaction speed becomes. Speed isn’t the only problem; since all the transactions are encrypted, once you lose your password, recovering it is impossible. This means that you will not access your Bitcoin wallet once you lose your password.
Besides, the dependability of Bitcoin is always at stake since its value of Bitcoin shifts quite often. Today, the value could be high only for it to drop suddenly. Therefore, the value of Bitcoin is too uncertain, something that makes it hard for it to compete with traditional money as a unit of exchange.
Opportunity: Safety from Cooperating Data Breaches
The world is fast moving towards cashless currencies and big companies such as Amazon are accepting payments in terms of Bitcoin for their goods and services. This shows that companies are recognizing the viability and safety of using Bitcoin. Therefore, there is a likelihood that more companies will accept Bitcoin as a payment for their services and goods.
People are always on the lookout for safe and secure alternatives to banks and other non-banking institutions. This is because data breaches that often involve customer data and information occur when using brands such as Facebook, and it will only take a short time before cyber criminals access your credit card information. As such, people are shifting to Bitcoin, which is secure and doesn’t involve third parties.
Threats: Anonymity against Government and banks
Whereas anonymity is a benefit and an opportunity, it is also a threat. If in wrong hands, it can be dangerous. When transactions are untraceable, criminals get attracted to them. Truthfully, the more Bitcoin transactions become anonymous the more some people will use it for wicked activities.
The use of bitcoins presents a unique problem to law enforcement. This is because if more criminals adopt Bitcoin into their illegal businesses, the law enforcement agencies will face a challenge in arresting and prosecuting them.
Bitcoin isn’t the only cryptocurrency on the market today. After its tremendous rise to popularity, other options like Peercoin and Ethereum emerged. If the values of these alternatives rise, Bitcoin will undoubtedly be in trouble. Nonetheless, unreliability is the main threat to Bitcoin and its rivals.
Disclaimer: This is a paid post and should not be considered as news/advice.