Cryptocurrency exploded in 2017, and the resulting media attention brought both praise and criticism. The resulting crypto speculation frenzy have led some to herald cryptocurrencies as “the Financial Revolution” and others to call it the ultimate bubble. As with any emerging technology, onlookers are both intrigued, and scared of the vast possibilities that crypto present. This is because cryptocurrencies and blockchain technology provide an alternative solution in some facet, to the everyday problems we all face.
The Birth of Bitcoin
The Age Old Problems With Fiat Currency
Cryptocurrency, The Solution to Fiat
The Problems Bitcoin Faces
- Higher fees: Because of the number of people using Bitcoin, the network got congested over time. This leads to higher and higher fees as people are willing to pay more to get their transactions through faster. Developers have been trying to solve this issue and so far, fees are starting to become lower again.
- Not easy to use: People who are not computer savvy will have a hard time using cryptocurrencies, like Bitcoins. Aside from that, you’ll need to keep a long set of numbers (private keys) safe to be able to make a transaction.
- Need for electricity: Mining requires a lot of electricity, which is bad for the environment. Plus, it’s quite expensive. It is estimated that total mining electricity worldwide rivals the annual consumption of a small country.
- Used for criminal activities: You don’t have to use your own identity when using bitcoin. This makes it easier for criminals to use Bitcoin for illegal activities like money laundering and illegal transactions
- Registration is inexpensive, costing only around $0.05. Compared to the standard procedure, the costs of a domain name registration is far lesser.
- There’s no need to pay a renewal fee to retain the domain, but you must publish a transaction with the domain name every 6 months.
- Management of subdomains is similar to the management of the current domain system. For example, you will have access to all the subdomains of mywebsite.bit after you registered it to the Namecoin System.
- Use Namecoin to propose ideas, such as voting, file signatures, notary services, proof of existence, and bonds/stocks/shares.
- A NASCAR driver installed Dogecoin logo on his car
- A community that raised over 30 thousand dollars to support the Jamaican bobsled team to let them travel and compete in 2014 Winter Olympic Games
- Cardano Settlement Layer (CSL) is a stand-alone blockchain with ADA as a token. It stores and accounts for transactional value and supports a Control layer extension. In gaming and gambling, the settlement layer helps verify how honest the numbers were generated and the outcomes of a game.
- Lack of institutional capital
- Not enough intrinsic value
- Implementation of regulations