The Most Significant Bitcoin Problems We Face Today
Bitcoin continues to grow every day, becoming the most dominant cryptocurrency source of transaction on the digital platform. You get to enjoy bitcoin and how it makes transfer of digital assets possible. This article is not necessarily going to ponder on the advantages brought about by BTC, but it will focus on different mishaps that are brought about by bitcoin.
Bitcoin has had a wholesome impact on the economic, social, and political aspects of humanity. Its gross usage by many people across the world has brought about a lot of problems requiring expert review and assessment. Remember that bitcoin is the most lucrative digital currency and it has been there for a long time. How accountable is Bitcoin?
You have used it for a certain period and what have you discovered of late? Cryptocurrency is a family meaning that some of that problems found in the bitcoin transacting process are also found in related coins currencies like Ethereum. There is a sense of correlation when it comes to bitcoin problems. There is a lot to talk about.
Are bitcoin accounts accountable and reliable because accountability is one of the traditional expectations of humanity? Do bitcoin accounts follow the protocol that you expected or you are experiencing something different? These are all issues that need to be looked at because those are the same situations that brew problems. After grazing through this article, you will have ear knowledge of the problems you may encounter with BTC, and probable solutions will be thrown in here and there.
Our comments are from an expert point of view, an experienced perspective that has knowledge of how bitcoin has presented itself as a challenge to some clients. Let us look at some of the problems below.
Remember we have mentioned the gross use of bitcoin as the major lucrative currency but that’s where the problems starts to emanate from. Too much of everything is too much. So many accounts operating under bitcoin transfer and receive bitcoin operate on a second basis.
This unlimited cliché of accounts have created a huge possibility for a loophole. This is where some of the biggest problems emanate from. Below we take time to elaborate on the most basic and most encountered problems from bitcoin.
No reputation or social accountability
With a lot of unlimited accounts active, reputation seems to be hitting a hard rock and a hard place. Bitcoin accounts are designed in such a way that they have a protocol stage whereby all of the programmed features can be controlled in a bad way or good way.
It is all digital when it comes to bitcoin accounts and this simply means that there is no humane accountability. That in it self is a bias towards reputation cornerstones. As we have mentioned earlier, accountability is one of the cores of humanity, for many years that have passed and for many years that are still ahead of us.
Humans need to feel that sense of amenability. In some cases, notifications on new account changes are not sent at the right moment. You can wake up to see your account telling a different story. This is very destructive of accountability.
Only financial incentives to regulate good behavior
Bitcoin is centered around money. Money is the main driver in either boom or recession of a market. Even when it comes to the issue if financial incentives, money is at the center of things. However, critiques of digital movements have propounded a rather appropriate and odd question to Bitcoin designers.
They say, how are we guaranteed when we are using a digital mode of transacting that uses money as a behavioral tuning device? That’s when many began to propound an idea that bitcoin is actually a phenomenon for the rich and famous. Considerations should be placed on social sustainability of bitcoin.
Does not improve existing trust
Almost everything about bitcoin accounts and how transactions are carried is implicit meaning that you do not know he legitimacy of who you are sending to or who you are receiving it from. There is too much anonymity and this hinders trust.
It’s always good see the exact person who you are engaging with to guarantee trustworthy. That’s one aspect that still surprises many bitcoin traders out there. Bitcoin miners are anonymous, you only hear of them when you are in need of them. Archived hacking saga’s add more salt on the wound because a client is always questioning the legitimacy of BTC.
Not able to self-regulate
Behavior wise bitcoin is unable to put a holding line. The lack of proper accountability makes the whole process cumbersome. Such lack of self regulation emanates from financial incentives that are bad for bitcoin trading. This is one of the most crucial and enormous problems that have haunted bitcoin customers.
As a matter if fact, this problem has caused a loss of about $1.8 billion from multiple hacking attempts. Of late, $350,000 was lost in what was suspected to be a deliberate hack. Hackers bloom on such Bitcoin mishaps and its is pretty clear that the problem will go on and on if it remains unchecked. Lack of self regulation also brews multiple scams which are always denying proper transacting. Private keys, yes they offer safety to bitcoin transacting but when it come to public domain keys, its another story all together.
That’s where hackers come in and make a living. Such blockchain setups are totally unsafe and insecure because hackers can temper around with your wallet address and passwords. Instead of insuring self assessment, bitcoin is being manipulated to full fill terroristic purchases in what is termed a digital military fusion. The big leagues with high rates of bitcoin mining and transacting have a large voice, meaning anything can happen at any time.
That’s why people are not advised to give anyone private keys. The absence of a self regulatory platforms has paved way form an aggregate nationwide regulatory system. This means that the government and the state head has big enough say in what is to become a nation bitcoin constitution. That’s how unfortunate some people are when it comes to bitcoin trading.
Recently an EU appeal was propounded to pave way for efficient self regulatory systems that will go a long in chucking out dirty digital and bogus hacks. On top of all this, self regulation has an advantage of removing that edge if anonymity. Meaning that identity is shifted to another level.
Not designed for mainstream
Bitcoin has usable designs and systems that are meant for those that have good tech knowledge. A client with limited knowledge is unable to participate in the mainstream. Let say you want go use light networking.
It appears easy on the paper but for many users it is a tough job really. Mainstream of digital transacting is difficult to enter because bitcoin fails to allocate enough time to educate society. Everything is too complex. There is that sense of inequality due to a wide enough rift that has been created between the tech savvy and those with meagre tech knowledge.
This has resulted in the mainstream transaction platform being dominated by rich people and those that have so much tech knowledge. Bitcoin should be more and more user friendly, for example they present decentralized exchanges which in fact are not really accessible. That becomes a technical challenge if trying to access the mainstream. Some of these things are stated in theoretical terms but when it comes to the practical aspects, they are difficult.
Hard to acquire
For you to trade Bitcoin, you must have it in your account or wallet first. Yes, it sounds pretty easy but to many it has proven to very tough. For beginners, its a mountainous task Exchanges have complicated user interfaces that are a challenge. Decentralized exchange as we mentioned earlier are not really free but rather they are diminutive to new comers.
Yes, you can ask a friend about how best to go about it but its not really helpful because these are expert platforms that require expert assistance. Most importantly, if you are low bidder, chances that your bitcoin purchase is processed fast is low because such transactions are ignored by many miners on blocks. Bitcoin miners need transactions that have huge fee charges, you can be unfortunate to wait for days without your miniature transaction being processed.
Cannot change, upgrade or adapt
Bitcoin is bitcoin, chanced of further advancements is very low. There are many software packages that have been prepared to chuck out digital loopholes, upgraded software that are tasked in bringing proper assessment of the BTC scene.
Bitcoin casts a blind eye on some of these inconsistencies. It rather focuses on money while ignoring some of the basic upgrade vitalities. The society is changing day by day, technology is now part and parcel of the society and Bitcoin should actually take a big step in trying to adapt. There is need to adapt with potential software setups that are brought to the scene time after time.
Does not unbank the banks
In bitcoin transaction and operation, there are miners. There individuals have three quarter % control when it come to issue of decision making. This means that when there is proposition of new rules, that appear to be lucrative to the business, they make way for protocol and cement because it will be profitable for them in the future.
Mining pools have a chance to shape up the guiding principles. Using every way possible, they try to safeguard their banks. Currencies like Ethereum is one example that has been dominated in all directions by mining pools. In the far east of China, almost seven digital companies use their supremacy to initiate control systems in their favour. Its unlike the traditional banking system that pursues a different direction altogether.
The issue then comes also to auditing procedures. A broad set if setup network nodes is used to fulfil auditing. Changes suggested after auditing are not practical for the majority and they are in many ways profitable to the controllers themselves. There is majority-supreme dialogue, everything is pre-set for base bitcoin traders. Rule twisting has an effect to many bitcoin traders. It simply means that audible revenue operation is not convenient and achievable. Banking rule come in also with its set of regulations that drag bitcoin.
When grazing on this topic there are basic notes and important points that must be taken into consideration. We have listed them below.
- As of proof of stake in issues of consensus, there is a wide enough hope that decentralisation on the political authority of networks is achievable.
- 0 holders of Ethereum have a tough time because POS is unable to rectify such problems. .
- Proof of stake is perfect in showing the decentralization of political authority in blockchain issues.
- Yes, mechanisms basing on consensus can be used to resolve but remember they have the supreme authority to hide their identity, use anonymous accounts that are private and make end to end decisions.
- Bitcoin decisions are not that formal meaning that political decisions are pursued in a whisker, without proper formality
- At this stage of political hype, most decisions as we mentioned earlier are not transparent but rather they are jittery to majority Bitcoin users. However, blockchain might appear to be open and transparent but in actual fact its not.
Bitcoin is outdated software
Bitcoin lacks that sheer advancement and proper regular update. Loopholes are create by such making it a jeopardy to newcomers. The absolute lack of tech upgrades causes a lot of mishaps that continue to stifle users. The current state makes it impossible for the global scene to weigh on how best bitcoin can be used on the global platform.
The gross transaction processes make it cumbersome for clients to process transactions thereby making it impossible to pursue usability. The level of identity detailing is difficult to understand because that sequential order of letters and numbers is still not ideal for an average user. Account names are called cryptographic setup which is not understandable. For majority users, accounts are under he supervision of experts. Those that occupy a specific set of tech savvy.
Chances of money being lost are high because management is not in your hands. Adaptation to hefty fee charges is very difficult, it poses as a confusion to many majority traders. Always remember that bitcoin is not hard currency meaning that the rate of volatility is high making it almost impossible for bitcoin to be used as formal currency.
Those are the basic issues behind the given topic but of late advancements have been proposed in blockchain tech to make it possible for technicalities to access mainstream’s.
There is no real value
Bitcoin is unlike fiat currency that have a set and operation price tag setup by the government. Fiat is very deterministic when it comes to issues of valuation meaning that there is an already stated value. However, bitcoin is highly volatile and can change anytime, either in benefiting the majority or of the controllers.
Digital assets shift value at any moment making it a bad situation altogether. As the giant cryptocurrency continues to be used by many users across the world, we have to embrace the possibility of a set value. Unlike fiat currencies that are determined by government policy, they are originally meant to benefit the masses through valuing basic commodity ranges, bitcoin rather poses a different pictures.
This is so because anyone can value bitcoin. Bitcoin fails to hold that stable run of valuation, it has a wobbly system when it comes to who actually holds the keys in value determination. Its high time Bitcoin burrows something from fiat currency operation that base their shape on central banks operation that are coupled with international monetary platforms. These international monetary platforms work tirelessly to determine the purchase and selling of currency in an attempt to determine stability.
The article has made it clear that bitcoin does not necessarily offer all that it promises. From the level of anonymity to that edge of discrepancies when it comes to bitcoin politics. Blockchain tech has been elevated to better heights but bitcoin management (determined by top brass) continues to be a setback. There is no dialogue and transparency when it comes to the majority users of bitcoin and those that have the keys to everything. Humanity is changing but we need to make sure that we propound digital currencies that are ideal for accountability.
That’s how one can have guarantee of the whole operation. We can not pursue a lot of risk in a situation where digital platforms continue to brew more and more risks. We hope that you have grazed through this article and you have managed to get a leaf or two out of it. There are other cryptocurrency setups that are relative to bitcoin, you can as well create a comparison to see which one is better.
Bitcoin is not only walking the talk in the digital world but is is also making an shaping up humanity in the future. Is it the most ideal way of digital transacting? Yes, in most cases it continues to grab the poll position but as a peoples choice, many things need to be revamped and twisted in a different direction. Always remember that bitcoin dominance is there to stay but it is only up to you the trader, to either continue or drawback.
Read also: How to Cancel a Bitcoin Transaction?