Critics continue to highlight Bitcoin's shortcomings, including governance issues and outdated technology, raising questions about the cryptocurrency's future.
Bitcoin's Governance and Security Concerns
Cyber Capital Founder Justin Bons emphasizes that Bitcoin's governance model hinders it from adapting to modern blockchain advancements. Unlike newer networks with faster finality and higher transactions per second, BTC remains limited. Bons also warns about Bitcoin's declining security model. With block rewards decreasing, network security depends on transaction fees, which may not be sufficient in the future. He also predicts a potential bank-run scenario if mass exits occur, as the network's transaction capacity is too limited to efficiently process a large-scale withdrawal, increasing systemic risks and potentially leading to a liquidity crisis.
Bitcoin Price Analysis
Following a March decline, Bitcoin has demonstrated resilience. Currently, the price is situated between the 200-day EMA at $85,481.33 and the 50-day EMA at $87,826.20. This area serves as both support and resistance. Price increases could be fueled by bullish momentum if Bitcoin breaks above the 50-day EMA. But if this level is not maintained, there may be a drop toward the 200-day EMA. The 15.61K BTC trade volume suggests a cautious market attitude and moderate activity.
Current Market Situation
The general trajectory of Bitcoin remains erratic. Consolidation and a pullback followed the robust bullish surge that lasted from October to December. The price is currently trying to recover, but it needs to overcome resistance at important technical levels.
While Bitcoin tries to regain lost ground, serious questions arise about its long-term viability amidst structural challenges and criticism of its governance model.
