The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.
Everyone who gets to know bitcoin should always be aware that bitcoin is volatile in nature and that feature will never be gone but will always be the first to be recognized. While it's true that for some businesses, it's a challenge to accept bitcoin because they should have a good cashflow to make their business keep on going. For individuals, I don't think that this is a big challenge to think of. Before, many have seen the opportunity instead of challenge with bitcoin's volatility and that's why it really depends on how we look at it. The opportunity comes in as an investment but being a payment as an individual, it isn't a challenge either.
For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.
That's why there are third party services that they can use and it is their option to opt with those services so that, they won't just hold and lessen its value while holding it but they can convert it quickly to their preferred currency or cash.
the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.
They can just be after the exchanges and that's why KYC is mostly implemented to the exchanges but then, bitcoin isn't really made for that purpose. Thus, that's why it's decentralized in nature.
Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.
Bitcoin survived on its early days without their intervention and will still survive whether they're in or out. Those aren't really challenges at all IMHO.