It would appear that 2017 could be fairly called the Year of Bitcoin. The most popular and thus valuable cryptocurrency has been breaking record after record this year. On 8 November, 1 BTC was trading somewhere around $7,700; at the beginning of the year it was worth about $960). Crazy.
However, due to the fork that did not happen (and the Bitcoin community was rather looking forward to it, as the intended development should have increased the speed of transactions), the market reacted harshly. Bitcoin quickly lost quite a chunk of its value. At one point in time, it was as low as $5,600, but at press time had rebounded to $7,200. Hence, it is growing. Again.
Despite seeing all of this, I am still quite surprised that many people tend to think that Bitcoin is a currency, though at this point in time it is not a threat to our regular fiat currencies. On the other hand, a number of people seem to realize that transaction times, energy inefficiencies in Bitcoin mining and the like are some of the key challenges that prevent Bitcoin from becoming a true alternative to USD, GBP or EUR.
No matter which position you hold, I must disappoint you (but stay me with nevertheless!) – Bitcoin is no longer a currency, and it will never be one. Here’s why…