Many cryptocurrencies have been developed after bitcoin was invented, but it is one of the most popular and valued crypto assets. Crypto enthusiasts value bitcoin and blockchain, and this has inspired many developers to invest time and efforts into developing cryptocurrency like bitcoin. The bitcoin market is volatile and highly unpredictable, but the rise in the value of bitcoin has delighted investors and attracted them towards the mining process. To understand more about this digital currency, search bitcoin circuit, and learn about it for trading.
The growing popularity and value of bitcoin has attracted investors and traders, and businesses and agencies have undoubtedly begun to accept bitcoin as a medium of exchange. Yet, there are some of the challenges that the bitcoin community has to overcome, which are as follows:
The List of Challenges that must be overcome includes:
A less supportive mobile platform
Undoubtedly, many businesses and agencies have started to support bitcoins, but it’s pretty shocking to see that the tech giants still don’t support bitcoin on mobile platforms. In fact, tech giants like Google and Apply decide to ban bitcoin wallet applications on their App Store. Even after knowing that tech giants do not support bitcoins, some developers are still creating bitcoin wallet applications and damaging the economic ecosystem.
The popular and reputable companies do not engage in bargains of bitcoin. They are a helping hand to the government as they are using their powers not to regulate bitcoin by not providing them with a platform. This is a bit of a challenge for bitcoin users because bitcoin is an excellent payment method that allows for quick and easy transactions. It allows users to easily send and receive bitcoin using mobile wallets instead of going to bank accounts to perform the transactions.
Dawdling Transactions
The biggest challenge the bitcoin network faces is the long time taken by the system to process the bitcoin transactions. This prevents businesses from receiving crypto tokens. The challenge of handling transactions occurs when the transaction is processed on the blockchain. The average time a bitcoin transaction takes to get verified is about 43 minutes. The main reason behind the instant transactions is the transaction cost fee that is for people who want to get their transactions checked first.
Users who do not pay the transaction fee need to wait for hours to complete their transactions. For example, when you go to a retail store to buy something, you pay for that item with bitcoin. The transaction needs to be verified first on the blockchain, and miners do this task. The miners are the specialized computers that use specialized computing power to solve the complex mathematical algorithms to verify the transactions and dig new coins.
Costly Transactions
The bitcoin transactions are subject to the transaction cost fee, which creates a line of pending transactions. Transactions are operated in accordance with the transaction fee paid to quickly check the transaction. Consumers who want to complete their transaction first need to pay an additional transaction fee to complete it. This, in turn, will make the transaction expensive in good faith. Businesses are hesitant to accept bitcoin as a payment method because of the slow and expensive transactions it offers. Because of this issue, people switch to other methods or currencies to complete transactions quickly and easily.
Less privacy
Another big challenge that bitcoin users face is the lack of privacy. All transactions are recorded on a distributed public ledger, ie, on the blockchain, making users switch from bitcoin to other cryptocurrencies. People trust bitcoin because they have heard of a misconception that says bitcoin is a private system. But the reality is completely different, and consumers must understand that the bitcoin network is anonymous but not completely private.
In fact, bitcoin transactions are scrubbed and not encrypted, and this makes all transactions available for public analysis and scrutiny. People consider it a privacy concern that must be linked to bitcoin transactions. Many wallets and other projects have reported less privacy, so it is important that you are familiar with the wallets and choose the one carefully.