- Bitcoin faces governance and security concerns as critics warn of outdated tech, potential liquidity crises, and reliance on fees.
- BTC’s price struggles near key EMAs, with a breakout above $87,826.20 signaling bullish momentum while failure risks a drop to $85,481.33.
- Market sentiment remains cautious as Bitcoin attempts recovery amid mixed trends, moderate trading volume, and structural challenges.
As the price tries to recover higher levels, critics point out Bitcoin’s (BTC) shortcomings.. Cyber Capital Founder Justin Bons contends that Bitcoin’s governance problems and outdated technology present serious risks. The 50-day Exponential Moving Average (EMA) is a barrier for Bitcoin, which is currently trading at $87,085.19, indicating a 2.26% daily gain.
Bitcoin’s Governance and Security Concerns
Justin Bons emphasizes that Bitcoin’s governance model prevents 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.
Additionally, he predicts Bitcoin could face a “bank-run-type” scenario if mass exits occur. The network’s transaction capacity is too limited to facilitate a large-scale withdrawal quickly. This flaw increases systemic risks, potentially leading to a liquidity crisis. Such issues raise concerns about Bitcoin’s long-term viability despite its dominance.
Price Analysis
Following a March decline, Bitcoin has demonstrated resiliency. At the moment, 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 support as well as opposition.
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 cautious market attitude and moderate activity.
Furthermore, the general trajectory of Bitcoin is still 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 opposition at important technical levels.
