Why BitCoin will not succeed in the long term. There are several different reasons.
One of the first is the cost of producing BitCoin. So far about 11 million ‘coins’ have to be mined using computers to ‘hash’ algorithms, out of a total of 21 million coins. To date the cost of electricity to produce a single BitCoin averages $6500. This time next year, because the complexity of computer calculations increases with each BitCoin mined, the average electricity cost will be approx $14000. The final cost of electricity to produce all 21 million coins will be far higher than that.
Second point. Transaction costs with BitCoin are increasing rapidly. The average fee now is $20 for any transaction and increasing all the time. That kills BitCoin as a currency, you will never be able to use it for grocery shopping. It is the way the blockchain technology underlying the system works. The faster you want to process a BitCoin payment, the more you have to pay, and that can be far higher than $20.
Third point. Governments will not allow a popular asset to be traded without being able to collect tax on it. They will start restricting the BitCoin exchanges. European governments on Friday 15/12/17 began doing this.
Final point. BitCoin has no fundamental value, it is just a digital ‘thing’, with nothing to support its value in the real world.
It is just a thing for speculation and ‘get rich quick’, For many investors, when the time comes, will be a way to lose money quickly. Particularly as the BitCoin system can’t handle large numbers of buy and sell orders for immediate processing. Your sell order could well take several days to process. That is simply how the BitCoin system works.