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The Rise and Fall of Bitcoin

By CIOReview | Wednesday, April 11, 2018

2010 was a breezy year for Bitcoin with only several enthusiasts and blockchain connoisseurs investing in the digital currency. At that time, neither was the currency disruptive nor was it drawing all the attention that it is now getting. However, Bitcoin was surely growing as one of the fewer secure modes of transaction, owing to the diversified platform—blockchain. The distributed ledger concept allowed businessmen attain a foolproof transaction channel irrespective of the nature of the business, and Bitcoin was the currency that made it all possible.

As it grew in the ranks of various modes of transaction, Bitcoin not only generated traction but also became a concern for nationalities as the currency was not regulated. The very idea that a foreign currency could inflate or deflate the economy of a country without any form of filtration hindered the financial stability, according to a lot of decision-makers across the globe. Though the currency brought with itself many newer possibilities, the lack of adequate regulation started to break even the stock market towards the end of 2016. The rise of Bitcoin also made way for similar other crypto currencies which followed their own operational guidelines, causing more confusion in terms of regulating these digital assets in accordance with different nationalities. Another problem that persisted was the black market transactions, made easier by numerous digital assets, which allowed unregulated transactions across borders. These concerns made Bitcoin and all digital currencies in general, an unreliable mode of monetary exchange for various countries.