We may see a functional, widely accepted cryptocurrency someday, but it won’t be bitcoin.#Crypto #cryptocurrency #cryptocurrencies #bitcoin #Ethereum #investing #stocks #StockMarket #BanyanHillhttps://t.co/re4MOkoAPo
— Ted Bauman Guru (@Ted_B_Guru) January 23, 2018
Bitcoin fanatics have long heralded Bitcoin as the currency of the future thanks to the ability to move the digital currency privately, without government interference. However, Ted Bauman, an investing consultant and financial guru, believes that a major obstacle may prevent Bitcoin from spreading further: a lack of scalability.
This ‘lack of scalability,’ refers to Bitcoin’s inability to quickly or efficiently process large numbers of transactions at a time. While Ted Bauman does believe that there are advantages to Bitcoin, he argues that the scalability problem will likely prevent the cryptocurrency from becoming universally accepted.
For argument’s sake, Bauman proposes that we imagine we’re living in a future where Bitcoin is a widely-accepted form of currency. While being able to pay in Bitcoin would be convenient for online purchases, and a lifesaver if you lose your wallet, Bitcoin’s slow processing speeds when faced with large numbers of transactions could cause widespread problems. If you were out at a restaurant, for example, and tried to cover the check using Bitcoin, the transaction might go through in a few minutes, but you could just as easily be stuck in the restaurant for the better part of an hour waiting for the transaction to be processed. These kinds of problems would only become more frequent the more popular Bitcoin became.
Ted Bauman notes that while major credit card companies can handle thousands of transactions per second, Bitcoin can currently process only six or seven per second. However, Bauman does propose a solution to the scalability issue. If Bitcoin either reduced the data processed in each mining block or increased the size of data blocks, he says, they would potentially be able to increase processing speeds dramatically. He also points out that Bitcoin miners are already looking into other ways to improve the cryptocurrency’s scalability. Visit Ted Bauman at thesovereigninvestor.com to know more.
Ted Bauman was educated at the University of Cape Town in South Africa, where he graduated with postgraduate degrees in history and economics. Over the course of the first decade of the 2000s, he worked as a consultant in finance, housing and urban development for the UN and the South African government, among other high-profile clients. Since 2013, Bauman has also worked with Banyan Hill Publishing, serving as the editor for the Bauman Letter, the Plan B Club and Alpha Stock Alert.He co-authored a book, Where to Stash Your Cash (Legally), and he continues to research and write about financial issues as diverse as cryptocurrency, investment planning and asset protection. Learn more:https://seekingalpha.com/user/48547799/comments