After a cold start into 2018, bitcoin traders and holders witnessed an upward turn of the world’s first and largest cryptocurrency. Facing regulatory issues from across the globe Bitcoin is yet to become a part of the mainstream economics. As per the latest report, European Union’s European Central Bank is planning to issue their native cryptocurrencies that could jeopardize the future of Bitcoin and altcoins.
Cryptocurrencies like Bitcoin have been attempting to sideline traditional fiat currencies by offering benefits such as faster transactions, global accessibility, reduced fees, and more. At the same time, traditional banks are leveraging emerging technologies to introduce pre-permissioned cryptocurrencies authorized by banking institutions, thereby addressing and eliminating many of the associated challenges faced by crypto users.
Since the time Bitcoin made way into the commercial market, the Central and commercial banks have been trying to block the existence of crypto exchanges that offer the platform for users to dwell into cryptocurrencies. The future of Bitcoin seems to be in peril with the low competition in the mining industry. As bitcoin uses the Proof-of-work consensus, the 79% of the mining industry of bitcoin is controlled by five mining pools that put a cap on the competition and their by jeopardizing new bitcoin generation.
Bitcoin Not a Threat—Yet
European Union has always been standing against the cryptocurrency markets as it is creating channels for money laundering that is non-traceable as most of the major players in the ecosystem are working outside Europe. With a very limited portion of Bitcoin mining control (13%) across the globe, Europe houses 42% of the supply of wallets and 37% of the exchanges.
EU has reported that Bitcoin does not pose any risk to the traditional financial system and for the matter of fact, if the central banks move towards creating their native cryptocurrencies, the future of Bitcoin will have a hard hit.
