As with all new technology, there are certain problems that make themselves evident during development.
Utilizing Bitcoin in the business world raises several questions:
- What are the considerations of using Bitcoin?
- What is a Bitcoin Fork?
- Is it trustworthy?
- Ethereum is slightly different from Bitcoin, does that mean it is safer?
Let’s break these down.
- Considerations when using Bitcoin is that its value as an investment is somewhat risky. It is a decentralized currency, meaning that there is no “central” administrator or provider of Bitcoin. Unlike, say, the American Dollar, which originates from the U.S. Mint, Bitcoin is generated from data miners all over the internet. https://en.wikipedia.org/wiki/Virtual_currency
- A Bitcoin fork is not something unique to Bitcoin. A “fork” in this context is literally when a blockchain splits from itself and spawns two separate chains. A Bitcoin fork would mean that the single blockchain Bitcoin runs on, would then split into Bitcoin Chain A and Bitcoin Chain B. https://www.cryptocoinsnews.com/bitcoin-to-hardfork/ Fork Subredit: https://redd.it/4vupzp
- There is currently a disagreement in the Bitcoin community over whether to let the transaction count expand to whatever the chain can handle, or whether to keep the transaction count minimal to increase user safety and security. https://techcrunch.com/video/in-search-of-itself-trust-disrupted-bitcoin-and-the-blockchain-s1e3/57f584b95095497719f427b8/
- Fellow Bitcoin developer Eric Lombrozo was troubled by the ease with which the Ethereum blockchain was forked. This could be taken as evidence by investors and regulators that other forks are possible given the right motivation. However, Lombrozo, an early contributor to the Ethereum project as well, argues that the consensus achieved by democratic process was in fact more of a plurality because so few people voted.