There’s still a huge rift in this industry and many Problems with Cryptocurrencies. It’s either you buy into crypto or you don’t. but to be completely fair, it’s okay to have questions about crypto. It’s only natural to have this.
There are many Problems with Cryptocurrencies that still need to be solved. We’ll look at some of them and try and see where they can be improved. I would not blame anybody who is still not sure about crypto. Well, if you stand on the fence we’ll try and help you join ne side and hopefully it’s the crypto and blockchain is really good just needs a few tweaks side.
Problems with Cryptocurrencies: High Volatility
The price of Bitcoin has been going up and down in the past four years. This makes it a lot harder for investors to trust that ecosystem as a worthy investment. Another thing is most people don’t know what crypto currencies and how they work hence predicting their price becomes very difficult.
Also many new currencies are started just to raise money and after that they disappear and leave people blaming the entire system. This is very frustrating and for sure something needs to be done asap to help people out.
This is the most debated areas in terms of Problems with Cryptocurrencies. Currencies are faced with a dilemma, either to choose between speed or security and decentralization. Most coins choose the latter and hence transactions are agonizingly slow. This is a huge hinderance for many people and they opt for fiat currencies. Due to how inconvenient crypto is at the moment.
Absence of Regulations
This is a super frustration for many. Especially new investors who are unable to trust the system. The fact that many people may exploit crypto and use it for unethical means. This is is a massive Problems with Cryptocurrencies that turn off for any investor. Regulation is needed to help improve and help get more people involved. The regulations need to reign in on bad behavior. Strong regulations are needed if crypto is to be recognized internationally.
This is also a problem fiat currencies face. Many of them cannot be liquid. Selling any assets without affecting the value of the currency is almost impossible for the investors. investors can lose hundreds of dollars before they sell the currency.
Cryptocurrencies are also prone to breaches and hacks. many crypto companies report millions in lost coin due to hacking. Also, many ICO’s have faced issues with security breaches and hacking which cost investors millions.
The hackers are getting smarter and now attacking their systems for ransomware. This compromises a lot of data and firms end up losing a lot of money and credibility. This is very dangerous especially if it’s a new startup which needs funds. This could put them out of business leading to many people losing their jobs.
Problems with Cryptocurrencies: Way Forward
Crypto are still young. The existing hurdles can be tackled by practical solutions. For crypto to flourish these problems need to be addressed as soon as possible. They could start with a regulatory framework to govern the application of cryptocurrencies.
Maybe countries form a union and govern to help deal with this. It has to be self-governing so as not to curtail the gains already made due to bureaucracy and other similar occurrences. Many companies are already working on scalability and will eventually find a suitable way to deal it. It’s also important to deal with volatility and give investors confidence.
Even though there’re many Problems with Cryptocurrencies, smart people have decided that the positive outweigh the negatives and invest it the currencies anyway. Be smart.