Bitcoin has remained one of the highest valued cryptocurrencies in the current financial year and it has been holding that position for a very long time. Even though its dip and market crash last year, depreciation of its value has not lost it the spot to be the top-rated cryptocurrency. International Institutions and government institutions have also started to accept the usage of this mode of transaction since its high market value and a vast number of users in the current time.
This would lead to publicity as well as increase the stocks of the institutions. But since the plunge of market value despite the high market capitalization of the cryptocurrencies industries, people, as well as big organizations and institutions, fear the engagement of the bitcoin services to their list.
Pros of adopting bitcoin
- Bitcoins are one of the fastest modes of transaction nowadays. So for the bulk amount of transfer and a huge number of transactions, bitcoin usage would help a lot in speeding up the process.
- Bitcoin does not require any kind of hardbound material to cover up for the transaction. The electronic mode of transactions is also a step up for the institutions to adopt it.
- Bitcoin values are not the same every day. So institutions charging a certain amount in bitcoin for a certain job to be done can even make a fortune out of it if the prices go up in the international market for the bitcoin prior to the transaction being made.
- The Blockchain safety feature has made it almost unbreakable in terms of security. Thus there lies no chance for the organization to be frauded using bitcoin.
- Bitcoin is one of the most invested cryptocurrencies in the market right now. So, adopting bitcoin would increase the number of investors of a certain company and thereby mark its position in the world stock market.
- Progressive first-world countries adopting and legalizing the cryptocurrency market would give other institutions from different countries around the globe to transact and thus adopting bitcoin can increase the scope of the organization to transact.
Why do institutions fear adopting bitcoin?
Bitcoin is not a steady market for sure. The value of 1 bitcoin changes according to the stock rate and market equity. Thus companies fear to be missing out on a large amount of money while they are the seller.
If the value of a bitcoin increases post buying something in exchange for bitcoin and also if it decreases post selling something, not only it’s a risky venture for them, but also they may be incurring losses which are feared by everyone.
The currency is so volatile that it dips and increases just by the tweet of international celebrities would be a lot difficult to handle. Assuming these many institutions fear the adoption of bitcoin may bring loss to them.
Recent speculations by different leaders of the countries in publishing a ban on the different kinds of cryptocurrencies have also worried many different individuals and organizations worldwide. This fear of ban from different countries can also result in losses of the investors from different countries which would ultimately lead to the loss of the organization.
Bitcoin was the only entity in the financial market to ever go up the price of gold. Since 1973 the value of gold was considered to be the peak entity in the money market. Over trumping the value of gold by the value of 1 bitcoin made people and institutions more interested in the bitcoin and crypto industry.
Industries with progressive ideas and risk-taking capabilities have started adopting bitcoins and transacting with them. They believe bitcoin surpassed gold and may also have other facilities too and can eventually be the highest bid in the financial market. But on speculation of a ban from different countries and the volatility of bitcoin, many fear it too.