Bitcoin uses a measuring unit known as a hash

uses a measuring unit known as a hash rate. Increased hash rates increase mining difficulty; requiring
further capital expenditure from incumbent miners and higher operating costs. If no one is selling and mining any
Bitcoins then it leaves Bitcoin unstable and so leaving the cryptocurrency
market open for new digital currencies to take over. This eventually means it
is losing its core competencies of the brand name of Bitcoin and Satoshi Nakamotos coding ability.

Issues of
trust have plagued Bitcoin historically, but with numerous and legitimate
merchants like Microsoft and PayPal making transactions in bitcoins spite of
the valuation insecurity attached, increasing adoption among consumers, as
people are resistant to change as they believe Bitcoin isn’t safe to use as
people lack awareness (Shaw, 2016). Conversely the sustainable competitive
advantages of bitcoin are  that it is
resistant to transactional fraud as all transactions can be traced through its
public ledger; Even though bitcoin addresses are pseudonymous, a good team of
detectives would be able to track and trace criminal activity if they have
failed to meticulously conceal their steps, something that is difficult to do
on a public ledger (Hass McCook, 2014).

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now


As Bitcoin
is considered to be somewhere within the first few stages of the
technology adoption lifecycle
“innovation enthusiast”, “early adopters/ visionaries” the next step the
technology faces is traversing “the Chasm” to gain wider public usage (figure
1.3). Market strategy and positioning and an enticing customer
proposition are required to ensure that Bitcoin companies correctly navigate
the Chasm to push Bitcoin towards majority adoption. Each segment of the TAL
has different characteristics, the current population of Bitcoin users are at
the “early adopters/ visionaries” who have different characteristics than the

Each time a
new block is added, the miner gets bitcoins incentive. It is therefore
important to find ways to accelerate the mining process (Simon Barber,

public ledger are being leveraged, by Bitcoin using Blockchain it allows them
to increase transparency and reduce the costs of the cross-border transactions (Aitken, 2017). 
Using Blockchain technology it allows bitcoin to meet the technological
advances of 2017 (Robert
Hackett, 2017).

sensitivity table (figure 1.1) shows how energy footprints will be a serious
issue if Bitcoin grows at hash rate of 110 million (Hass McCook,
2014). Although the Bitcoin mining industry should be efficient in
theory, and the largest miners would be expected to have the most efficient
equipment. Gross majority of impact made by electronics happens during their
use, and not during production (Computer
Recycling and EWaste Solutions, 2014). Figure 1.2 shows the environmental costs of
gold mining compared to Bitcoin mining. It should be noted that the only thing
involved in Bitcoin mining is electricity usage, and as the world moves towards
clean and renewable energy, Bitcoin will have even less of an impact on the
environment. The rapid rise of the Bitcoin exchange rate guaranties increasing
attention from tax authorities. Financial authorities may have an interest in
the taxation of earnings denominated in bitcoin, though tax policy and laws are
not necessarily designed to take account of virtual profits (Franziska Boehm, Paulina Pesch, 2017).