Passion for Bitcoin: Can BTC Overcome Scalability Issues & Maintain Dominance?

2 Sep, 2025
| Salome K

BLESSED IS HE WHO BELIEVES: DUBIOUS PROSPECTS FOR BITCOIN’S GROWTH

The pioneer of decentralized finance became Bitcoin, which laid the beginning for the rapid development of the cryptocurrency industry. However, its technological base by 2014 had become morally obsolete, which manifested itself in catastrophically low network throughput. In December 2017, a transaction with a Bitcoin transfer could take more than a day to confirm. Undoubtedly, we owe to Bitcoin the start of multifaceted blockchain development and its penetration into everyday life.

However, modern mechanisms of decentralized finance require high speeds of conducting operations, which the Proof-of-Work (PoW) protocol, underlying Bitcoin, is not able to provide. Proof-of-Work is a method of transaction confirmation that uses complex computer algorithms requiring enormous computational resources. This makes it extremely inefficient and economically unprofitable. Considering the limited possibilities for modernizing this blockchain, the practical prospects of using Bitcoin as a financial instrument raise serious doubts.

Realizing this and striving to maintain the relevance of the outdated platform, experts began to promote the narrative of “digital gold,” emphasizing the deflationary nature of the asset. However, this thesis also does not withstand criticism. The growth rate of Bitcoin’s price is steadily slowing, mining profitability tends to zero, and volatility remains at a dangerously high level. Deep cyclical downturns are observed, causing a massive outflow of investors into stablecoins — the logic is simple: it’s better to preserve funds than to risk.

After 2017, Bitcoin’s growth was largely artificially supported: through the unbacked emission of stablecoins, primarily USDT, as well as speculative infusions from large investment funds. This led to a dangerous concentration — about 30% of all Bitcoins are now concentrated among 1% of holders. Such a skew creates a threat of collapse: it is enough for a few “whales” to start selling to cause panic in the market. The real backing of stablecoins, which in recent years have been the main driver of Bitcoin’s price growth, is also in question.

That is why market manipulators actively spread fairy tales about the upcoming growth and “eternal value” of the asset. It is necessary to lure as many people as possible into buying at peak prices to then exit positions unhindered. Major players have already begun gradually selling Bitcoin, trying not to provoke a collapse, and periodically pump the price with optimistic news triggers.

What will happen when the crypto market moguls finally get rid of Bitcoin and transfer funds into more technological assets is not hard to predict. Bitcoin’s dominance in the total trading volume has already fallen to 50% and continues to decline, and rumors of an imminent “altcoin season” are becoming more persistent.

However, perhaps everything is not so gloomy, and Bitcoin will regain its youth, accumulate energy for growth, and please those who missed the beginning of its triumphant procession. The hopes of idealists never die, and one can continue to indulge in illusions that Wall Street sharks will forever remain holders of “digital gold,” and you will share profits with them in the club of carefree billionaires.

Nevertheless, it would be reckless to ignore the threatening signals. Institutional investors, before finally parting with Bitcoin, will try to extract maximum benefit from the last speculative waves. The launch of Bitcoin ETFs, for example, was a clever move that allowed attracting additional funds without solving the fundamental problems related to scalability and centralization. It is quite likely that we will see a few more such “pumps” designed to mask the inevitable decline.

It is important to understand that technological progress in the blockchain sphere does not stand still. New, more efficient and environmentally friendly protocols are emerging, capable of processing thousands of transactions per second. They offer real solutions for decentralized applications and smart contracts, while Bitcoin remains in the past, trying to hold positions through artificially created hype.

Of course, Bitcoin will forever remain in history as the first cryptocurrency, but history does not always reward pioneers. Time will tell whether it can adapt to new realities or turn into a museum exhibit, reminiscent of the dawn of the crypto industry.

It is worth remembering that investments in cryptocurrencies are always associated with high risk. Before deciding to buy Bitcoin, it is necessary to carefully study all factors, including technical shortcomings, market manipulation, and possible regulatory restrictions. Do not let the thirst for easy profit blind you, and remember that free cheese is only in a mousetrap.

In the end, Bitcoin’s fate depends on many factors, many of which remain unpredictable. However, based on an analysis of the current situation and considering the trends in the development of the crypto industry, it can be concluded that its growth prospects look very doubtful.

Moreover, the enthusiasm around Bitcoin is often fueled not so much by faith in its technological superiority as by the fear of missing out. Many investors, especially newcomers, succumb to FOMO (fear of missing out) and invest in an asset without fully understanding its essence and risks. This creates fertile ground for speculation and artificial inflation of the price, which sooner or later leads to a painful correction.

The influence of regulatory bodies should not be discounted either. The governments of many countries are concerned about the use of cryptocurrencies for illegal purposes and seek to strengthen control over this area. The introduction of strict rules and restrictions could significantly affect the price of Bitcoin and its accessibility to investors.

In addition to technical and regulatory factors, there is also the risk of more advanced alternatives appearing. The cryptocurrency market is constantly evolving, and new projects are emerging that offer faster, cheaper, and more secure transactions. If one of these projects manages to gain popularity and trust from investors, it could seriously undermine Bitcoin’s position.

In conclusion, despite Bitcoin’s enduring popularity, its future seems uncertain. Technological shortcomings, market manipulation, regulatory risks, and the emergence of more advanced alternatives – all these are factors that could lead to its decline. Investors should exercise caution and not succumb to artificially created hype, but carefully analyze all factors before making a decision to buy.