Topic: Economical World Of Bitcoin And Its Difficulties (Read 404 times)

Not only on 80% but I do believe its on 95% which most people would really tend not like for bitcoin to be legalized since if it does then decentralization would be somehow affected but not fully. By means of taxation people can able to evade as they like know bitcoin can make up anonymous transactions. This is why most government wont really like to adopt it on their vicinity because of these such things. Regarding on the recent situation on where fees are ridiculously high and long confirmation times I don't really see that it can be considered to be mainstream.

I disagree I think bitcoin will help reduce those kind of crimes, right now there is an incredible amount of credit card fraud and hackers even steal the identity of the victim, with bitcoin you can avoid that since you do not have to reveal your identity to open a wallet and since most of your bitcoin can be in cold storage then that means hackers are not going to have an easy access to it.

The economical world of bitcoin is good, in terms of good returns of profits to every users who invest and trade. Bitcoin difficulties that there are some business intitutions stopped using and accessing bitcoin. It is sad to say but that is the reallity of what happened today about bitcoin. We are hoping that kind issue will resolve by bitcoin organizer or bitcoin founder.

Adaptability of different kinds of people with different age if we notice even a 2 year kid already know how to use fiat they can actually buy things but with bitcoin I think it would be quite difficult. Another thing is that those people belongs to the lower class of the society will surely find it difficult to understand digital currency and the technology it has. I think there would be lot's of issue if bitcoin will become the only currency of the world

if according to ane Bitcoin can indeed change the economy of a country and also decrease the poverty rate also the unemployment rate so that a country is advanced

Add this to the difficulties, Acceptance of the government on each country. As we can see, the world government denies the use of bitcoin, although some countries have accepted it, but we cannot rule out all the others.

If my views to date, the government does not take a stand. Because bitcoin also does not harm the state or harm a country. More precisely the role of government to date just to know while monitoring the good side of bitcoin for a country's economy.

There are 2 difficulties actually that you haven't mentioned.
    Another difficulty that i can see happening is when we already become a cashless society, then we will have banks that run the crypto scene. And when this happens we are doomed. Just think if somehow the government hates you, all your crypto gets frozen amd takem from the government. And even if you have cryptos you didn't declare, you won't be able to take advantage of them since smart computers someday will be able ro check every aource of any transaction and if it finds you, it will also take everything you have left of your undeclared cryptos. And authorities will come at you and lockong you up for breaking a law that the future government in a cashless world made.

   Another is a possibility of having hackers hack the main servers that control all types of cryptos and you can only guess what'll happen next.

For who own bitcoin earlier, they become rich person because bitcoin getting rare.
Yes, some government like mine still not agree for bitcoin because it can be use for criminal activity and they decide to make a fix rule on this year 2018
So for now, just keep invest bitcoin because I feel that bitcoin will make me , richer than before.

Well this may even not be the real problem, let suppose the internet is on boom in each and every part of the world and cryptocurrency is leagalized all over the world too.
What government will do is that they will collect tax on every crypto transaction, are the users here ready to pay these taxes? The truth is a majority of bitcoin users adopted it because it is decentralized. Governments will drag it to a centralised pattern I think more than 80% of BTC users will not like it to be a centralised currency.
Secondly bitcoin transaction fee and confirmation time is too ridiculous to be used on the spot.
Honestly speaking implementation of crypto could only be a day dreaming. Crypto physically is not capable to be used as streamline currency. It could only be used as a secondary currency.

It is really far from it and even though bitcoin and most of the cryptocurrencies will be in play for now, that does not mean it would just replace the fiat system easily like that.

The governments know this is an unregulated environment and even if they cannot stop it, the volatility based on that non regulation is always going to be in play and that would make it uneasy to use it as a currency in the long run, but I may be wrong, anything can change.

With internet being spread this does not seem to be a big problem and I know there are some countries which are poor and dont have internet access but trust me they do otherwise we would not see this level of shitposting in this forum.

The bigger problem with crypto is the adoption and the acceptance. People are always having that little doubt in their mind about the nature of crypto and how safe it actually is. They should study the bitcoin.pdf whitepaper and mostly idiots investors who enter into crypto to make money will never learn this.

this is not an easy thing especially in realizing bitcoin to the whole world community because I think bitcoin is an electronic currency with a blockhaind technology that is not likely everyone will understand about it. I think it is necessary to have detailed detailedization of all sectors, especially for parents who are very much not interested in electronic-based financial systems because of the limited understanding they have because of age factors that hamper understanding of the electronic currency. not to mention for children who do not yet understand about crypto. so as I say that there needs to be a realization of all sectors. or we can give an example suppose that for children to know this it means crypto must enter through the education sector that can be entered for a curriculum or subjects applied in school education.

I think that the major problem for this would be that bitcoin runs on the internet and for some cou tries that do not have neccessarily the function to carry this over to their whole nation would not have the full efficiency of using this cryptocurrency

Some of thing as below,

making awareness of bitcoin worldwide is important,
Some countries still bitcoin not made completely legal, bitcoin needs to be legalized,
And economy should also involve bitcoin like fiat currency with growth .
All countries should go digitization. Digital awareness will makes this happen.
mainly on bitcoin transaction fees should be reduced.

i hope still may we can say.

One currency economy should even be the last thing anyone should ever want to think of. This will not work unless it remains decentralized still.

Every country will still have their own currency anyway and just like we have it already globally with USD being placed as the global currency, it can still work without issues, but we cannot really say what the outcome would really be like at the end, but until then if it eventually happens at all.

Well another thing to point out to is by using Cryptocurrency instead of the regular fiat currency as a whole is that crimes will be more easier to be accomplish as they will be using computers and the internet instead of guns in stealing your money. Remember that it is prevalent now seeing HYIP sites and fake scam money making programs you know that they are attracted to this kind of cryptocurrency which new members are an easy prey for them.

Yeah, and since that does not even look feasible from the angle we are now, it may not really pose to be a huge challenge. Fiat is still going to be very usable and only few of those who willingly want to use bitcoin would end up using it as long as they do not have any restriction doing so.

Nothing comes pretty fast just as you said, adoption happens slowly and to me bitcoin is even pretty fast than we could all have imagined within just few years, but we should expect the fiat system to keep on going for now.

For me ,
1. Terminal of bitcoin transactions were more prone to get hacked.
2. Poor people cannot afford to have this card or wallet to store their coins.
3. If all transactions are electronic and the system fails, people cannot do their transactions.

The biggest difficulty that we can face in this year is the fiat banking systems officials, investors and the politician behind them. It’s like having a mafia of corrupt and greedy individuals who have plenty that want to control one country and its financial and economic standing for self interest. This is the evil that been manipulating us for a long time and we should not back down and surrender to fight for bitcoin.

Most of the difficulties have been outlined, but we have to understand that even if crypto will end up being used, the government will not give up centralization for decentralization and that would always still be in majority of the crypto world while most of the crypto we are seeing today will end up just like stocks.

It is a good thing we are here and there is nothing that does not have its own challenges but for now, these are some of the things we should face mostly like you have mentioned.

Those are really some valid point you have stated and asides that, the fact that we have a pretty huge level of volatility right now is even an enough reason to believe that would also be a huge setback. I have never really seeing bitcoin replacing fiats anyway. Fiats would always be in play and mostly what we would see is bitcoin and other cryptocurrencies being there just like we have always had the stock market.

If it get to that point of fiat converging into an digital banking or billing it would be ridiculous to not have a paper money its kind of creepy lol. Well facing it now but by little. As you say internet isnt worldwide some locations dont have the signal or the authority to acces the full operated internet. Its disadvantageous to those who does not have that and it will be difficult to those who are old enough to not even recognize what internet us or what smartphones even mean.

The thing is that it is not possible, anyone who is thinking of such is just dreaming a dream that will never come to pass. Ok let’s say that it happens, do you think it’s even everyone that will have it? No, because it’s not everyone that has access to Internet, and there are people who are aware of the internet, but not even interested in making use of it, because they just don’t want to.

I think that it is still far from the full era of the crypto currency, because many still feel the danger to this phenomenon. Let's see

There are a lot of difficulties that those people who are not updated with technologies or there's no trace of innovation in their places and those people who'll be affected are the ones who are living mostly in remote places.

Biggest concern, we can't transact to those places that doesn't have connectivity.

Lately everyone will be educated to crypto just like this year to many investors came in.

Not a problem, we can buy and spend bitcoin in fractions.

I think the security of your own coins is the biggest problem , i won't trust the average Joe to take care of their private keys and wallet back ups.
People are being scammed so easy out of money in their bank accounts , i think when they have crypto's the problem will be much bigger.

Perhaps the obstacle that will arise is the transaction costs are too high so the hunters become a little nervous.If this problem is not fixed as soon as possible it will surely disrupt a person in looking for a great income.

First of all its very hard to change the way we are attached too. because higher batch will getting a hard time to study the system of blockchain/bitcoin. yes we have 21 million supply but in white paper there is such number that will give us bitcoin.. it could be 21.1111111 supply

Bitcoin will not replace fiat and maybe It's better to have cryptocurrencies next to fiat. First of all, we don't have 1 fiat currency. US, Europe, China and the UK will definitely hold on to their own currency. So, replacing all these different currencies is out of the question. Although this would make things easier. Maybe we should be glad to have the best of both worlds. Bitcoins issues, high fees and long conformation time, are a big problem for bitcoin. These issues are no problem for some altcoins, which are another threat to bitcoin.

Because of only 21 million BTC being mined ever. It's based on a deflationary model, intentionally to preclude inflationary central banks meddling. But banks favor low positive inflation. Employers can't easily cut their employees pay. Because of inflation employers can 'afford' to the pay same wages for a period. If currency is deflationary as supply is limited, wages become costly causing unemployment. This will hold back BTC the currency it is set out to be.

First things first,it is not possible to remove the fiat system altogether with crypto currencies being the leaders taking over the fiat currency system,bitcoin is divisible so the number of coins is not the issue,scaling is the big issue we will be encountering as it is not meant for five billion people to use the system on a daily basis,it has certain limitations regarding these things.

But those difficulties are only going to be true if you tried to replace fiat with bitcoin right now, as technology becomes cheaper and more accessible people will begin to adopt bitcoin slowly, in the future when the Internet becomes available in a similar way than water and electricity then we will begin to see bitcoin used by all kind of people, to me the biggest problem that needs to be solved asap is the transaction fees everything else can be solved with time.

One currency economy would lead to nothing but war, destruction and obstruction. One more problem that the crypto economy might face would be the results causes by the end of net neutrality. And to add to your first point, internet is essential but there are not enough resources for people, so care about internet later first, let the being live peacefully. Spreading an awareness to people about crypto would be something that would be impossible to do, everyone has their own understandings, it'd take forever for any economy to embrace crypto as it's main currency. There are tons of issues, we are just not seeing them.

Sure Bitcoin may be a solution, but I definitely think it's far from ideal. Beyond just the first point, not only do people need internet, but they also need access to some electronic device to keep their wallets in tact and remember everything. Furthermore, a problem arises in the transaction fees and confirm times. If there's a backlog of transactions, people with micro transactions often need to spend more for fees than the transaction itself. This needs to be fixed before Bitcoin can be scaled up.

i think i will add more base on my little knowledge :
- price move too high and not stable
- government regulation
- relation between country
- bankers
- job that will lost because traditional bank is lost
etc

From my opinion regulation and convenience are two from its Difficulties that we are facing from its usage, well let's take the fact that it is easier to hand a piece of paper or metal to a convenient store to buy some candies or chocolate with a price of dollar cents rather than to carry a device that needs an internet connection and a small fee just to transfer the payment for your goodies. For regulation, we all know the issues we face with this measure.

I think  money fiat can be converted into crypto money, it is likely still takes a long time. Like in my country bitcoin can be used to buy goods online. If I think it is very good.

The major drawback nowadays is the very high transaction fee which has almost made bitcoin unusable for micro transactions.The other drawback is that it has not been widely legalized by world countries which creates an uncertainty in the bitcoin world.

As we all face the future of bitcoin and how it will work for the others in the next years to come, things should be really settled first. Indeed, internet should all be stable in every parts of the world because without it, it is impossible for bitcoin to operate with it's users.

Awareness about crypto is a big thing because if everyone has been aware about it then they will agree that we remove fiat then we can use crypto. It is very important that people must be educated about it and they know how it works. Their awareness is a great factor to make it possible together with internet of course.

Banks are not problem because they are into business , if currency face will become Crypto instead of Fiat. They will find another sort of business with Crypto and run same Banks ( may be possible they will change Bank with some other technical name ).

What is the duty of Bank ? This is is what we have to understand before going against Bank concept. Because human nature is to stock by assuming uncertainty in his life , same time he is afraid of loosing those stocks .. So they (humans) made a system call bank. Later they found it usefull so they expand it and started giving Loans , Interest etc

So if brain will change and instead of Fiat there will come Crypto , same human race will turn things into another thing. So as per my believe it is possible even having banks to adopt crypto but things not going to change in 1-2 decade. We have to make our surrounding aware of how to use Crypto , Specially the next generation.

The economical world of bitcoin is base on how many people access or being registered daily. The mean difficulties also is that the price of bitcoin is not permanent.

I think that there is not a serious difficulty but you are right that the price is so volatile and many people are afraid of investing in bitcoin. They think that if the price falls they will lose all their investment and it is a bad thing. Internet is also a problem.

Sometimes internet does not work properly and if I need to buy or sell my bitcoin I will face difficulty. Many people are unable to deal in bitcoin because they have internet facility in their places.

Basic difficulty that people are facing to adobt BTC as regular transaction mode is the HIGH transaction fees and delay in confirmation in transaction. Lightning network can be a solution to this prob but I don't know when it will be effective.
Altcoin like BCH is getting popular and gaining price hike due these cons of BTC.

remove fiat seems impossible for me because the government in this world still consider fiat as their actual currencies so they won't let these currencies removed however maybe volatile will be major difficulties to use cryptocurrencies as world currencies because difficult to controlled the price and possible some people could manipulate the price and the big impact is there will be big inflation will happened if we use that

The very basic challenges impeding progress and development comes to mind before all the technical and technological aspects accessing Bitcoin do. That's what we have to think about when it comes to economics. Education and literacy are right at the top - in my state, we only achieved 50% literacy for the first time this year. It's a small population of 3 million people, but the worry is that of that 50%, more than half are below the age of 50, meaning that this generation and the ones coming still do not have the ability to read or write.

Bitcoin and crypto have talked a lot about the unbanked, about decentralisation, about trustless systems. But I feel the people that need financial access the most still need banks, still need to trust some kind of organisation, some kind of centralisation. It's difficult to see in my lifetime how Bitcoin could benefit them, especially now that it has become the playground of the same privileged people (okay, some new millionaires but all persons of economic privilege in terms of global perspective).

For me one of the major difficulties we will be facing if full adoption of bitcoin will happen is the fact tha uneducated member of the society will surely find it difficult to transact using computers and internet in fact some of them really don't know how computers are operated and government needs to give a proper eduction for them and surely it will not be an easy thing to do although crypto currencies will really help for the growth of economic status of a certain countries this issue is something they need to fix first.

Absolutely they are the number 1 enemy of cryptocurrency. But I don't believe governments will hated bitcoin forever, maybe there is twist in the coming days and they fully support bitcoin. And with that way, the only possible difficulties we've encounter in future is the delay of online transactions due to a large numbers of in and out transactions everyday.

LOL. It's really difficult ) For now, if cryptocurrency can replace the fiat system I think at first cryptocurrency must be legalized worldwide, but for now, there are no country that legalize any cryptocurrency yet that why it's really hard for us to use cryptocurrency directly for payment. If this thing can happen I think it'll take at least 10 - 20 years more .

The main difficulty or hurdle is GOVERNMENT. Government won't let a decentralized currency run the country. Countries might launch their own cryptocurrencies, but the cryptocurrencies we are looking at now aren't the future replacement for fiat. Government needs a stable and centralized currency to keep the economy running. The model on which cryptocurrencies work isn't sustainable to run a country's economy.

#1 - This is the main hurdle. Even in the more advanced countries, there are still areas that lag behind with regards to the internet infrastructure because of the isolated location, you can just imagine how it would be in poorer countries like mine. Using mobile internet has been a solution for some people. I believe there are also plans for "balloons" that would extend mobile signals, and hence internet connection.

#2 - With the recent hikes and then futures, bitcoin is in many people's mouths now so they'd probably be more receptive to learning about it.

#3 - This is the reason why each btc is divisible into really smaller satoshis, up to 8 decimal digits. Try looking up the value of a satoshi in a converter, it's still negligible despite the $17,000 exchange rate.

Bank is good as well as bad both in same time.

Good because at the time of loans and business , that is a primary source to get loaf of loan to start business. Obvious too much amount our relatives can't give to support.

Bad because it regulates the currency.

Honestly speaking Bank have more benefits then disadvantage. But what if bank itself become Bankrupt .  . that is the main problem.

Awareness and Internet connectivity is the major issue facing in adopting BTC. People all around the world are not educated enough to understand the disadvantages of Fiat and benefits of Bitcoin over Fiat. And Secondary issue is that BTC transaction is totally dependent on Internet. There is a lot of places all around the world where Internet is not freely available or it cost a lot to use internet in such areas.

You forgot to mention the electricity issue because this kind of energy is not available everywhere in the world and the technological problem, not everybody has a pc or smart phone.

Honestly I think the biggest problem we'll face are dirty plays by banks. And since you can prevent any dirty trick by anticipating it, expect the unexpected

As much as I love crypto and as much as I dislike governments I must sadly agree with this notion here. I don't think governments and states will relinquish their control and probably will use their threat of violence to prevent this from happening. When you break it down it is basically like what terrorists do except in a more controlled and organized manner. That mashed together with propaganda and voila you have a mindless working class that has no problem being in debt their whole life. I hope that I am completely wrong however and crypto does one day takeover as international currency

the biggest difficulty we would face is to create as well as implement a proper system of taxation where people using BTC could be taxed. Another major problem is regarding controlling the money supply in the economy. I don't know if you know it or not the central authorities regulate the supply of money in the economy to ensure that inflation doesn't magically upsurges this is impossible with bitcoin.

Awareness and internet aren't the big enough comcerns to limit Bitcoin or Crypto Future as mode of payment. In countries like India, using internet is cheaper than packet of bread due to massive tech revolution.
But where actually problem lies is within the structure of these cryptocurrencies itself. Before thinking to use them as mode of payment, can we ensure that transactions will work out within seconds and at negligible fees? If cryptocurrencies can't cater such basic requirement of currency then it won't possible even if every human on face of Earth knows how to use Bitcoin and cryptos.


This may look fancy theoretically on piece of paper but practically this isn't feasible. I wrote about this in my last post, have a look:

Using cryptocurrency worldwide would be a revolutionary thing. One day it will be a fact thanks to technology evolving so fast.
However, it may not happen soon because of many factors:
- Infrastructure: Internet is not available in some countries.
- Regulation: cryptocurrency has to be regulated before it can be used worldwide.
- Volaility: can be considered as a disadvantage.
- Ignorance: many people don't know how to use new technologies.
....

The first 2 problems are the ones I see that would create a big problem for the complete transition to the digital world because in the case of number one, even if there is internet everywhere, there are still some people who will not use it no matter the explanation due to either cultural inclinations or religious connotations. Today in some parts of the world, some people don't still wear cloths or shoes despite the amount of years civilization have occurred. Going to number 2, the awareness will be something that will take forever to be done because it will mean the complete reorientation of people about the financial system right from the time that children know that there is money not living behind the senior citizens whose way of life has been about the normal way we have been doing things.

The irony of the matter is that, this set of people cannot be left behind because some of them are our grandparents, parents, kinsmen, etc whose population is significant in age distribution census of the country.

Volatile price is due to comparison of Crypto to Fiat , As subject said. Economical World of Bitcoin , where concept to buy things are of Crypto only.

Transaction issue almost 80% raised. My question is : Is Staking concept helps in making chain easier for transaction as all small units are somewhere calculating chain and helping to build a smooth network ? Sorry i am not very much technical so like to understand if i am thinking right ?

What are the ways to make transaction more easier ? Because already we saw so many Forks but almost all coins are taking time to reach one person to another.

I hate to be overly dramatic about things but I think fiat will never be replaced by crypto for one simple reason: control.

No nation on earth would cede control over its monetary supply to a small group of bitcoin core developers. 

Crypto currency that adopted by a government will likely be fiat implemented utilizing a blockchain. Government issued crypto likely would not utilize algorithmically regulated inflation nor limited supply. Also deregulated crypto which benefitted from low taxes, low fees, low bar to entry all of those features which contributed towards bitcoin being a more efficient, cheaper and user friendly currency likely would not be implemented by a state.

Also the low cost of using bitcoin, would probably be abandoned. Wheras it might cost less than $50,000 for a small group of developers to create an altcoin today. If a government tried to create its own altcoin, it could easily cost billions or trillions of dollars. Governments aren't structured to accomplish goals in a cost effective or efficient manner.

So there could be issues with governments attempting to implement crypto with a high probability it would turn into a profiteering enterprise invoking wealth redistribution where taxpayer funds collected from the poor to middle class were redistributed to a group of board executives through poorly structured & wasteful state run programs.

That is the reason why some other countries don't success of have much economic growth because of that kind of mentality, they are stable with what they have now, they don't even bother to go out outside their comfort zone, they don't realize this first without making any actions what advantage this could be in their life.

In my country, most of the people specially the older people didn't believe and trust internet currency. They always say that these are scams. I don't know how they concluded. Internet also been hard to establish since some of our province have not yet current. That's why many people are not aware in this economic trend. There are lots of difficulties that the government will encounter if they will change instantly from fiat to crypto. I think it takes time to move from virtual currency. Research must be done first.

Some of the transactions could be changed and only use some kind of crypto. I believe next years if you want to buy something on a foreign online market, it would be easier use a cryptocoin and not use the forex market. Maybe we will not be able to buy a coffee or a coke. But we could use to buy a bag of premium coffee from another country.

I am sure that's why a lot of investors are currently flocking towards BCH, they have very low and reasonable fees compared to bitcoin and i don't know whether its current value is the reason why the fees are so high or not but there should be something done before the fees alone makes it unattractable any more.

Some of the other difficulties that will be faced:

1. Bitcoin will be slow and fraught with double spending by mischievious fellows when retail transactions are being carried out.

2. The identity of a bitcoin user is unknown,if bitcoin is used by evil people like kidnappers to demand for ransom it will be very difficult track the recipients of such ransom to get them arrested.

Bitcoin's total number of coins will never be a problem. In current times the majority of the people can't even afford to buy 0.1 BTC anymore, and soon they won't be able to afford 0.05 BTC, and so forth. Bitcoin's total coin cap can be looked at from various perspectives.

21,000,000 BTC
21,000,000,000 MBTC
21,000,000,000,000 BITS
2,100,000,000,000,000 Satoshi's

Bitcoin's divisibililty is something that people tend to ignore since they just see Bitcoin's coin cap is fixed at 21 million Bitcoin's, while in reality it's just a GUI based level unit. We should accept that not everyone in the world is interested in using Bitcoin as their daily currency tool, so there will be enough coins, or better said, Satoshi's left for those who do end up using Bitcoin. In easy terms, no need to worry about this aspect.

The higher fees of transactions we are witnessing today is a great set back to bitcoin that has been say to have low fees and high speed. I think the mining fee create a great danger for cryptocurrencies development and it might take alot of scalling to be able to break that. Bitcoin will ever be preferable to any fiat because it is decentralized and people seeing as a system that make them be there on bank.

The number one problem that we may face is our government officials itself.. They won’t support anything that they can’t control and gain profit of.. It’s a given problem because we tolerate they’re abuses for many decades now.. But still hoping that this will change in the future as i always give them chance to prove they’re worth as a public servant than a private puppet..

The lack of worldwide internet is probably the biggest snagging point, in time that will be resolved but probably not for another generation. Awareness again will come with time and over the next generation, in time crypto will be easy for future generations. The limited supply is not an issue, Satoshi was aware of this and that is why bitcoins can be broken down in to many units.

Each bitcoin can be separated to small pieces. But transaction fees is the real problem.
I have read somewhere that bitcoin more investment instrument than digital currency.

Older people that don't know how to use computers, cell phones and internet;
Slow transactions and expensive fees;
Volatile price all the time, impossible to have a stable financial life.

(21.000.000 BTCs supply isn't a problem as we have 8 decimal houses and each satoshi counts).

From many months i am thinking about what if " we remove fiat system , and change things into crypto " .. What are the main difficulties we will face ?

1. Internet every where is not yet done.
2. Awareness with Crypto ( but its not a big thing, as most are aware of how to use currency. )
3. Bitcoin is only 21,000,000 and world population is more. ( This can fix by other altcoins same like USD/RUB/CNY etc )

What other difficulties we can face ?