The most annoying things with Cryptocurrencies
Much has been said about cryptocurrency and blockchain over the last decade. The growth of cryptocurrencies has seen a lot of positive vibes. They are promising to revolutionize the financial sector. In this article, we will go through what also makes cryptocurrencies annoying.
In fact, it’s the rise of Bitcoin that has made it hard for even those in the highest decision-making organs in government, finance, and technology to ignore. There has been a constant debate about crypto and Blockchain, but much of it is about its future. The most cited advantage of cryptocurrency is the decentralization feature. It ensures no central authority controls or interferes with its distribution and price.
Over the few years of my experience in crypto, there are some annoying things about the much-hyped digital currency. Indeed, it tends to discredit its adaptability like fiat currency. Suffice to say, many people believe that cryptocurrency is the next “bubble.”
However, in this article, I’ll not dwell on whether opinions about the future of cryptocurrencies is promising or not. We will look into what makes the digital currency trading one of the most annoying innovations.
The fact that crypto prices are not under any control from any central authority makes them very much susceptible to market dynamics. But depending on where you will find yourself in the crypto space, the term “volatility” can spell joy or doom for your investments.
While some find the volatile crypto space as an opportunity to make money, others see it as the reason why the digital coins have taken long to disrupt the financial market. But I’d agree with the argument that cryptocurrencies struggle to make a mark in the fiscal market, specifically failure to provide a functional and viable money digital money.
A closer look shows that volatility has been the number one enemy of functionality. For example, if you’re a store owner, you would not be confident enough to accept Bitcoin if you ever experience the extremeness of Bitcoin between 2017 and 2018, when BTC price rose to up to $20,000 towards the end of 2017 and dropped to as low as 3,000 in under one year. That’d be scary, right!?
There is no denying that cryptocurrencies’ speedy rise was actually as a result of some wild volatility, which was on the upward trajectory through to 2017.
Early adopters became instant millionaires just after a few years of holding what initially had little value of some few pennies.
But the story would change only a year later when Bitcoin started on its slippery downward slide that caused many investors millions of dollars of investments.
The fact that crypto investors rely heavily on speculative habits of the crypto market, investing is akin to betting. I’d prefer a currency that assures me of some protection, such that I don’t remain bankrupt over things I should control but unable to because of some ‘errand’ innovations.
Until volatility issue is resolved, crypto trading would remain one of the most annoying fields to dip your fingers in because your hard-earned money can be blown in months or even hours.
Issues of cybersecurity
One of my biggest fears, and of course the most annoying reality is that cryptocurrencies are not hacker-proof, contrary to what we have been told numerous times, and no insurance covers lost coins in a digital space not backed by any central authority.
Similar to the issue of volatility, it is quite easy to lose your crypto coins in the digital space in a stroke of seconds if hackers get access to your security keys.
In the short period, cryptocurrencies have been existence, we have seen a couple of incidences where initial coin offerings (ICOs) got breached, leading to massive trauma as investors lost hundreds of millions of dollars.
For example, the recent most prominent hacks saw Coincheck, BitGrail, and Coinrail losing $534, $195, and $30 million respectively. These are not small money, and certainly, it raises the question of the security of our investments in digital currencies.
What is obvious is that despite cryptocurrencies experiencing exponential growth, the security of the corresponding cybersecurity protocols has not improved concurrently, raising the question of its long-term viability as part of a mainstream financial system.
It is annoying because it appears developers of cryptocurrencies are treating the digital space like the traditional banking industry, which is covered by insurance and backed by their respective governments.
Speculation is not an investment
I have walked into several merchants’ stores hoping that I would be able to see any of them indicating that they are accepting Bitcoin or any other crypto in exchange for goods and services. But all my attempts seem to bear no fruit as most merchants are still wary of accepting crypto as a means of payment.
It’s easy to understand why merchants are reluctant to adopt crypto as a means of payment. First is the confirmation time that is clearly slower than paying via credit/debit card.
I’d not queue waiting for my exchange to process my payment for goods and services, yet I have an alternative on credit/debit card. Related to this concern is the fact that with crypto you can only spend it if you have, which is denying those who prefer credit card payment because it allows them to spend their money in advance.
From the failure to mature as a legitimate payment system, the only thing left with crypto is speculation. Speculation is one of the riskiest ventures as one is basically relying on the market dynamics to favor them to make a profit. The collective insanity that has sprouted to propel cryptocurrencies to where they are today is an indication that the crypto bubble can blow anytime.
Without any hope of product plan, crypto is not an investment, and relying on as an investment is investing in hope, which is disastrous. Moreover, the digital currency has attracted a large number of scammers, and with little or no control, these scammers cannot be traced.
This is quite annoying, to say the least, and if no remedial measures are taken into consideration then it would be difficult to trust crypto as a solid currency that would compete with mainstream currencies such as fiat. However, nowadays we are whitnessing the rise of Decentralized Finance, its decentralized applications and its secure smart contracts. A step toward global adoption is by DeFi projects having performant and unhackable smart contracts. To learn more about DeFi, don’t forget to check our dedicated post.
A lot needs to be done, for cryptocurrency trade to be considered viable. The common challenges of security, volatility, and lack of adaptability can cause serious false investment for anybody who wants to treat it as a legitimate investment. We are all aware that cryptocurrencies and Blockchain are here to stay, but that does not erase the fact that it has some annoying stuff when you decide to trade on it.