A large number of reasons have been associated with the issues surrounding mainstream crypto adoption. Experts observed that a number of complications have continued to hamper the virtual money industry. Without any issues, cryptocurrencies will experience a large scale currency evolution.
The crypto potential
Technology from the 21st century has changed the manner in which business is transacted. A large number of technological innovations have been geared towards making payments all digital.
The advent of blockchain technology was meant to fill the gaps existing in across traditional financial sectors. A Blockchain currency is a form of decentralized currency. Banks have been notorious for creating stringent monetary policies that affect daily business. Being decentralized, means that entities like governments or banks cannot control the currency in any way.
Cryptocurrencies have been regulated through the mining process involving the blockchain public ledger. Mining ensures accountability and transparency as far as the circulation is concerned.
Cryptocurrencies happen to out-compete their fiat counterparts in efficiency. Virtual coins offer a relevant currency alternative in a rapidly digitized world. This premise has been reported widely.
All of the benefits mentioned above are meant to influence the advancement of crypto popularity. Despite that, a number of reasons seem to complicate the mainstream adoption of crypto across the globe.
Constant media reports on cyber-crime involving bitcoin has created a false public believe. This shifts the perspective of the general public making them believe that crypto encourages crime.
Just recently, Twitter suffered an online attack that went down as its worse breach in history. Threat actors hacked the social media giant’s internal systems and gained access to the platform’s top accounts. The hackers tweeted from multiple popular accounts including, those of politicians and celebrities.
The attack was declared a Bitcoin scam where hackers used the compromised accounts to solicit for Bitcoin. Unsuspecting users ended up sending more than $120,000 in bitcoins to the threat actors. The people behind the attack were all caught.
The above example joins a big list of other crypto-related criminal events. All of these events continue to negatively affect the blockchain’s popularity.
Government policies and regulations are also added to the list of barriers that are keeping crypto from booming. Unfavorable regulations keep hampering cryptocurrencies and are preventing them from becoming globally accepted.
A host of taxes across international locations have proven to be way too complicated to enable a healthy crypto revolution. Expectedly, most of crypto’s woes are attributed to the fact that virtual money exists independent of government and banks. Governments exert their power because of their ability to control the circulation of funds within a given economy. Supporting cryptocurrencies would fully contradict their functions. Governments and banking institutions keep pushing anti-crypto policies that discourage its use.
Downsides to mining
As mentioned before, cryptocurrency transactions are accounted and verified through the mining process. Crypto transactions on the blockchain are usually confirmed and kept as blocks of information by crypto miners.
Unfortunately, the mining process fails in the energy sustainability department. Mining consumes vast amounts of energy. The entire process generates a lot of heat. A study by the University of Cambridge estimated that the Bitcoin network accounts for 0.27% of the global energy productions. This figure matches up to the total energy consumption estimates of some countries.
Blockchain technology was designed to process seven transactions per second. Cryptocurrency developers sought to prevent hacking attacks that target the technology. However, considering the current widespread use of crypto, a massive problem exists – salability.
Experts have failed to provide a lasting solution to the salability problems of crypto. This has made the cryptocurrency space lag behind significantly.