Challenges of Using Cryptocurrency
Cryptocurrencies are yet to take over the finance world yet, but they are on the way though. More people are appreciating this new form of currency and continue to invest in it. Governments have also embraced them and this is a clear sign that bitcoins and other popular digital currencies will change the world someday.
Today, we look at the challenges of using cryptocurrencies.
Few People Understand How to Use Bitcoins
Most tech savvy people use debt and credit cards and sometimes cash for small daily transactions. The high fees and the fact that some confirmations take 24 hours are two of the main reasons why most people don’t like card payments. Unfortunately, they do not know that some bitcoin transactions are completed within 10 minutes through secure encrypted systems. According to an article posted on Inc.com sensitizing target audiences that cryptocurrencies are inexpensive, more secure, and faster to use than cards will help promote growth.
One of the primary reasons why bitcoins is one of the most successful cryptocurrency is because of the Blockchain technology. As stated in an article posted on IP Watch, Blockchain technology is set to display all transactions in a ledger that is available to the public. As more digital currencies are introduced into the market, bitcoin will have no option but to come up with advanced technologies as well to rival the competitors. With new technology comes the need to spend resources empowering customers on how to use the currencies such as automatic exchange into a wallet.
Setting a Fiat Conversion
The current currency structure is dependent on the fiat currency provided by the various governments. Now, one of the main reasons why most people are of the idea that this new niche is not sustainable is because there is no tested and proven way of converting the digital currency into a fiat. There needs to be a more elaborate and simple way of buying and using cryptocurrency all across the globe. At the moment, bitcoins seems to be the main doorway to other digital currencies that were recently introduced into the market. That is, one has to first buy bitcoins in order to purchase the other cryptocurrencies available. This kind of reliance and monopolization is a major hindrance to use of cryptocurrencies across the world.
Getting Better than the Competition
For any new cryptocurrency to succeed in beating bitcoin; it has offer more affordable, secure, faster, reliable payment services than bitcoins. That is yet to happen but anything is possible in the current fast pasted digital world.
Ones these issues are exhaustively addressed, cryptocurrencies will stand a better chance of taking over the entire financial industry by storm.