Topic: What problems face Bitcoin? (Read 355 times)

It is not a technical problem but still a problem that slow adoption process, to be honest, many people I have encountered have this problem of not understanding the whole crypto space and fear their investment will go down when the market is in the bear state, so some only target when the market is in bull run to invest and quickly cash out, such attitude will not help in the adoption process if people are not confident to endure the market in both bull and bear.

Yeah, I actually didn't pay too much attention to Bitcoin over the years because of how it was described in the news.

It was just recently that I sat down and actually read about Bitcoin for myself, from the original whitepaper, this forum, etc.

I felt so betrayed by the news.

I've expressed my views regarding this in a similar topic in past.

Don't worry I'll say it again in brief, News is the reason mostly that's preventing people to adopt bitcoin and gambling related rumors surrounding bitcoin.
rumors like bitcoin are only used for gambling and deep web related services which creates a false image of bitcoin in many people and prevents them from using it.

I think the problem that really stands out from btc is
regulation
High volatility
The unstable nature of the price often results in a fairly high decline from the initial price and sometimes vice versa
Decentralized, where the government is difficult to regulate, and difficult to manipulate

On my own i have not detect any meaningful challenge that can hinder the transaction of all cryptocurrencies except congestion, because when its trafficking  occur via transaction of any cryptocurrencies i know vividly that it affect it's network and also cause insufficient cyber control, so with that alone it will delay the rate of transaction, then i noted that for any cryptocurrency transactions to process properly or very speed up it's transaction processes, it doesn't need to be congested, that's from my perspective.

Or simply with scability issue because this is something we had big problems in the past whenever the network pool is really on congestion on where fees are really on the roof.

Aside from that we are facing some regulation issues but well it  isnt really that much a serious issue because this market could move out freely without the need of those government approval.

Thing here is that we doo able too see the high demand of bitcoin despite of these problems.

network congestion will be the main problem that will make the bitcoin network not adopted, but the problem of the jammed network can be overcome with the Lightning network, this is faster and will certainly solve the network congestion problem.
Lightning Network Bitcoin is a second layer payment protocol that operates on top of the Bitcoin blockchain network, which makes bitcoin transactions faster and more efficient.

I don't know what could be the main problem, but what I am hearing from different press conferences is the statements from our so-called IT specialists, IT minister, finance minister, and government head bank. According to them, bitcoin has no authority to control anything. It is fully anonymous, so we can't trace its users either. And according to the finance minister, its price is volatile. So our people can lose huge amounts of money. Then, according to the bank, it has a money laundering problem. Some criminal buroe agencies are used for criminal purposes, so we are unable to trace any criminal activities. And according to some purlaments, energy waste is a problem. I hope so. I don't care about anything. But I think everything will be cut very short very soon. And it will be legal soon.

1. Anonymity: People has trust issues based on the part of the world they come from. Anonymity from the inventor, Anonymity of the users too.
2. Technicality: Bitcoin is too technical even to the adopters, let alone people who has not even believed in the process. Technically in the decision making to technically in usage.
3. None Tangibility: If bitcoin can be printed on paper like 1BTC and be carried along, you will be mad at the rate of adoption.
4. Volatility: Now that bitcoin is $60k+, you will not hear the news, but if it dips to $43k, you will hear the news everywhere that bitcoin has crashed.
And lots more.

Their is no need to repeat what people rendered concerning this question, but what i actually denotes is the primary thing which you are meant to obtain that it's because of it's volatility, and another challenges found out there that might cause bitcoin infrastructure is due to congestion and network challenges to process its data, because if their is much congestion it will really affect, and is very obvious.

Well, infrastructure will point to physical Internet infrastructure and the availability to access the Internet. The connectivity issues in 3rd world countries are huge ....with rural areas that might not even have electricity. So even if you place the needed hardware, people will still not be able to make transactions due to the lack of Internet access.

The way to address this, will have to be wifi hotspots in areas where commerce takes place... for them to access their Lightning Network wallets in close proximity to where they want to use their bitcoins. 

if you see the micro transactions , anonymity in transactions and the highly fluctuating value are kinda the main hindrance for many countries to  not be pro-crypto  but preferring instead to take a wait-and-see approach .
the microtransactions makes BTC less friendly for those who would want to use for daily expenses the transaction fees would be greater than that of the amount to be paid itself  and it also takes time for small transactions , the highly fluctuating value of BTC is a problem itself when using BTC as  a mode of payment , it was the main cause why steam stopped accepting BTC as mode of payment in December 2017, well as an asset its very good for  a digital currency to gain  its value but as a currency its the main obstruction.
the anonymous nature of transaction is the primary reason why many government fear accepting BTC as they would have little to no information about where the funds of their citizens are actually going , they would not be able to put taxes  on any trade , and the worst of all it could be used to fund criminal organizations without them even having a clue who funded them , well fiats are being used now  for funding criminal activities  but with BTC in the motion no-one could ever trace the money back.

The most important issue in my opinion is the inability to scale on-chain.  The limits put in place have stifled Bitcoin's developer community and largely forced those who remain to develop on a subpar chain as they risk being passed up by newer and shinier innovations.  Projects that once thrived on Bitcoin's blockchain are now graveyards of what once was while all attention is on assimilating with the legacy system.  I think Bitcoin's development away from forging a new path and towards legacy systems is going to end up being one of the biggest missed opportunities in the history of mankind.

People have no reasons to look at Bitcoin, because they are generally satisfied with banks. Even if they have a problem with their current bank, they will just choose from a dozen of alternatives rather than consider crypto. And the problems that bitcoin enthusiasts often mention - like frozen bank accounts, long transactions times, all that stuff - it only affects a tiny portion of users, so really most people just don't see the benefits of using Bitcoin as a currency. This is why hodling/investing is the biggest use case of Bitcoin right now.

One of the major problems hindering Bitcoin from being adopted is the transaction fee, unlike fiat and other coins, the transaction fee paid to block chain is high, also, bitcoin uses several medium of confirmations, this can be so discouraging especially for person who would love to use the medium in their business points.....

The only problem I can think of is, it is a threat to the exiting Fiat currency which is what is preventing it from been adopted although that thinking will be changing soon as countries has begin to pick interest in the currency. It was never going to be an easy attempt by Bitcoin to overthrown other currency (as that is the only means of the government controlling the people but steadily it has been doing that).

When the time is due, the government and regulatory bodies will realize they stand to benefit more from the blockchain technology and Bitcoin itself and instead of fighting it, they will embrace it.

To my mind, one of the biggest problems that influences on BTC’s adoption is volatility and readiness of Bitcoin hodlers and traders to spend their BTC for everyday goods because of that volatility. They 100% knows how BTC suddenly jumps in thousands up and down as well. Moreover a lot of investors just HODL. They don’t want to spend their BTC because believe in its future growth “to the moon” and want to safe their coins up to that time.

I think all of this is true but the most influential is the currency system which is difficult to regulate by the government.
If the bitcoin financial system could be regulated by the government, the negative impact of bitcoin would disappear, for example embezzlement of money, buying and selling drugs and buying and selling illegal weapons.
At this time there is no government that can regulate the crypto currency system or bitcoin, therefore some governments can only ban Bitcoin in their country because bitcoin cannot be regulated.

1) We already have scriptural form of money. I don't think it's a big issue to add another layer for bitcoin. Some banks already adopt bitcoin or other altcoins, while some other businesses use paiement gates like Bipay.
2) It's just a matter of time until bitcoin reach a certain stability after solving the blockchain related obstacles. As time goes by, bitcoin will be less volatile, like all other form of value (gold,metal,etc).
3) This can be considered as a big problem for bitcoin in long term. If people won't be interested to change their attitude toward money ad monetary concepts in general, nothing can be done for short term.
4) FUD is also a matter of time as more companies adopt bitcoin in large scale.
5) I think this is the biggest issue but fortunetly we can handle it by spreading knowledge about Blockchain.

I think the biggest problem facing bitcoin is the fear of the state because bitcoin users will leave fiat, of course the state will be banned from bitcoin and this has happened in many countries because countries value bitcoin transactions continue to increase.

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for me probably how it can be used to any crimes and of course how people become untraceable when it comes making transactions online.. Probably that's the common problem with decentralised wherein reason there are some countries that still don't want to adopt bitcoin..try to watch silk road movie because for sure you can get some leason why its happening to bitcoin..

I think the major problems that bitcoin is facing that is making it not to gain much adoption from people, the first would be that it is highly volatile. A lot of people are afraid of the volatile nature of bitcoin and they are always avoiding it because they fear that the money they will be putting in bitcoin might lose value at the time they might be in the need for it, so they just say away. Then another problem I would mention is FUDs such as when people say that it is being used by criminals and terrorists, lol.

FUDs like this usually discourage a lot of people, nobody would want to be making use of a currency that is believed to be used by criminals, but then they are forgetting that criminals also make use of Fiat and majority of criminal activities are carried out by fiat.

The point is still in high doubt regarding all the characteristics of Bitcoin. We think... it's worth it, but there are still many people out there who have different opinions on their opinions or their assessment of what they value. Bitcoin is indeed on the threshold of consideration, but its role will not sink, many positive things can still be generated from Bitcoin for its presence and popularity, it's just that overall haven't really admitted it yet.
The storyline and all the impacts that will result have not yet fully occurred, let's see how the whole government responds to this in terms of the future and whether it can advance the country or not.

lightning is a different network using units of account that are not bitcoin/sats. they are a thing called millisats. the transaction format of a milisat payment does not even function if you took that raw data and broadcast it to bitcoin as is.
lightning is not bitcoin. but can bridge to bitcoin by preconvertion on the lightning network to make it work in a separate function called close session. which is a different thing than the in-LN payment system

so bitcoin if you only talk about bitcoin does have a problem. the solution is not lightning as thats like saying the solution to bitcoin is a crapcoin. or pretending that bitcoin does not have a problem because a crap coin is bitcoins solution.

its like saying the solution to gold. is bank notes. yet everyone knows a bank note representing small amounts of gold stored in a vault is not actually gold, its paper
..
hiding bitcoins problems by telling people to offramp to another network and another unit of measure. is not solving bitcoins problems. its just promoting to use another network and avoid using bitcoin.

anyone suggesting or promoting to solve bitcoins issues by getting people to move over to another network. is not really helping bitcoin.
..
remember what happened to gold. citizens had gold. then got told to hand them into bank vaults and be given paper receipts(gold backed bank notes(iou)). over time people trusted the paper receipts and didnt value real gold.
now people have gold in their home in the form of device hardware, tooth fillings, but now they dont value it as a currency or an asset. they would rather throw their device in the trash when it breaks rather than recover the gold. instead they are blindly trusting the other unit of measure(bank note).

LN is in the same process. they want the deposits but they want high bitcoin fees to avoid withdrawals. they instead want people to withdraw out of LN via altcoins like litecoin, which offers cheap fees. so that the channel counterpart(hub/bank) can take the bitcoin and the user gets the altcoin.

LN is not a solution.. its a replacement. much like nickel and brass coins was a replacement for gold when people dont want bank notes

Lightning on a mobile wallet works great though.

In my opinion that really solves that problem. That's actually how people in El Salvador use Bitcoin every day.

Lightning is not perfect, but it works great for small amounts. You can always keep a small amount in the mobile lightning wallet, and the rest properly secured in cold storage.

I think only and one problem exists in Bitcoin which has been preventing easy adoption. That is the centralized organization unable to control Bitcoin due to the decentralized technology of Bitcoin. As a supporting centralized organization shows much more reason like using money laundering, crime, and consuming energy. But I think it's just centralized organizations like the government that want to control Bitcoin but they still didn't find any way how to do it. Whoever talking about regulations, does it possible a decentralized asset regulates 100%? I don't think so, if I choose centralized storing methods, then they could regulate it. Otherwise, it's not an easy task at all and that's why the government varies rarely allowing Bitcoin adoption.

volatility is caused by so many exchanges with such little coin on the order lines

when orderlines are 0.001, and the price change per order is like more then 1 penny in reality. a currency does not need much to shift +/- a dollar in milliseconds

most public exchanges are bot driven. where most orders are not 'placed to fill'. but 'placed to wall' where by if the price does move near them the bots cancel and re order in a different position.

this is not about actually doing buys/sells but to try to follow/sheep other exchanges.
this means that a user with enough actual coin can easily shift the price and cause other exchanges to shift without actually having his coin on those other exchanges.

when people learn that the bitcoin price is not based on all ~18mill coins.. nor even the presumed ~2mill coins sat in exchange wallets. but based on simply the current price of a 0.001 coin orderline being bought.
then people will realise its not the coins fault. but the exchange orderbook fault that allows such volatility without any 'circuit breaker' style of exchange tools

As far as Bitcoin's infrastructure is concerned, there is really not much problem. I guess the main problem is that the network is prone to congestion, and when that happens the fees will rise to terrible heights.

As regards volatility, public perception, lack of regulation, and so on and so forth; these are not problems in the infrastructure of Bitcoin. These are external problems. These are not Bitcoin's problems at all. However, it is unfortunate that they also contribute significantly to Bitcoin's slow adoption pace.

In my opinion, the main problem that prevents the adoption of Bitcoin is not decentralization or extreme price volatility, but the problem is the delay in transaction time and high fees. How can Bitcoin be used in daily transactions when you need several hours to get the transfer and may take several days if the network is congested? Of course, this is in addition to the high network fees when congestion.
In my opinion, unless the problem of delayed confirmations on the network is resolved, we will not be able to use Bitcoin in our daily lives to conduct our financial transactions.

It's more of this unregulated and decentralisation.

That's why governments or global financial institutions are making a move on it since 2017.

But the thing is that it's also the biggest reason why people all over the world wanted to dap themselves into the market because they can have financial freedom from their government.

The actual fear of volatility and FOMO from people. This isn't an actual infrastructure but this scares a lot of people that it can correct at any time and their investment will actually go lessen the way they're expecting it a lot. Although on the other hand, it's not actually a problem but it's typical in such markets including bitcoin's market.

Aside from those things/factors mentioned above, being uneducated about Bitcoin. If this will be taught in schools, I believe this could help for a better and wider understanding of Bitcoin and the entire market but for now, we can just found this online which we couldn't blame that people are still doubtful about this. Because people won't just invest money without knowledge, they need some guidance, especially for non-techy individuals which have become a challenge for them. They'd rather choose fiat instead as they are more comfortable than this Bitcoin.

AFAIK, this isn't really directly a problem for the Bitcoin network, but a problem for the Bitcoin user, there are quite a lot of "crimes and fraud" perpetrated with fiat, but you don't see people pointing it out and calling it bad cause of that, the government through the help of the media just make popular this sort of stories to reduce the population of Bitcoin users cause they can't control the network, cause I can't understand how the network can actually be blamed for the folly of some of it's users who refused to learn want was necessary.

The hindering nature of cryptocurrencies is known to many to be unstable and many to call it a scam. In addition, there are many cases of crime and fraud arguing for the use of BItcoin. Things like this make the face of Bitcoin look bad, when in fact Bitcoin is not that bad there are many positive things that can be obtained if you use it well and effectively. The problem of large transaction fees also sometimes makes someone annoyed and difficult to adopt BItcoin.

A limited blocksize makes cheap transactions unreliable and puts the network in a position where if it becomes popular, it becomes unusable while maintaining it's security and game theory principles.  The community also urges users not to actually use their Bitcoin, and just hold it.  Many people identify things like that as a type of Ponzi scheme and are reluctant to enter the space as a result.  Then there are the vendors who need a cheaper method of transacting in crypto and those afraid of the community that engage in censorship of others causing them to develop their own solutions to compete with Bitcoin.  

In short, the only problems with Bitcoin are man-made problems to push man-made solutions under the guise of decentralization while giving early adopters a larger slice of the pie.

Maybe you mean threat here. Anyway, each government has their own approach towards crypto. Some are totally opposites, like El Salvador and China. While El Salvador is embracing it fully, China is totally banning its usage. But I don agree that somehow, the government has its say regarding its existence to their jurisdiction. And the usual reason why most merchants are still hesitant to accept this as payment method is its volatility factor. Anyway, despite all these hurdles, we are seeing that bitcoin continues to grow and adoption is still increasing.

Bitcoin possess so much treat from government officials and regulatory bodies that do not understand the way it works and intend to condemn it's use.
As listed above, most of the threat that bitcoin possess are are from bodies that are not happy about a currency that cannot be controlled or regulated by them.

There isn't major problems when adopting bitcoin if you know what you are doing and what you are dealing with. The most common issue presented is volatility, but it's a natural characteristic of bitcoin and can't be changed. An adopter just needs to manage his funds converting amounts needed for daily expenses and emergencies to fiat or stable coin currencies, while holding the rest of the money in bitcoin.

Another point is regulations. For people from most countries regulations aren't a problem, because there isn't any specific rule for bitcoin, so it's pretty possible to use it without annoying interferences from the state (although a simple KYC procedure may be necessary).

And finally, some may say transaction's fees are too expensive, however if you use a third party service like an exchange or crypto banking app these fees will be highly decreased.

I'd say the it could be pointed at government (depending on the location). But! after reading the news about different protests in which people destroy Bitcoin ATMs, in countries like US, Hong Kong, I can see that even fellow individuals are a problem to the adoption. Though there are many other problems, this particular one is troubling because it's the people who need it that are repelling it. Such Irony.

Cryptos are still quite cumbersome to use. I guess this is still one of the key issues with cryptos. Adoption will come once we figure out a way to offer a much friendly way of handling and using cryptos. Take Defi for instance; it is even more difficult for someone new to the industry to grasp. The problem with cryptos is that you still need to have a bit of knowledge to dig into how everything works and how to use it. This leaves a lot of people out as they don't want to meddle with something that they don't understand.

1. Regulation
2. Volatility
3. Scalability
4. Negative views and impressions
5. Not all are ready to know and research about it

But if we do try to compared of things back in the past then we could definitely say that there is really some progress
and development which is really good to look and we shouldnt worry on how things should be done.

Lots of reasons but the most common include:
High volatility
Unstable nature
Decentralized which make it difficult for the government to manipulate.
It's the Most secure form for ransomware payment due to its anonymous peer-to-peer network.

Many still complain of the high energy consumption during mining. To add to all this Bitcoin doesn't have an intrinsic value it depends on fiat currency to have its value

It's more in the volatility, decentralized nature, it was also used to scam, payment of ransomware, used by criminals and etc., said by some oldies in a particular government office which hinder the adoption . That's why it would be better to ban them lol.

While for me, it's all about the large transaction fee if the network is congested, lots of user complain why it's expensive sending with small amount. While there is lightning already, newbie/users just lazy to learn it instead due technical reasons and mostly, the lack of support from the government.

For me personally the problem that i see facing bitcoin is the use in microtransactions, if ell like we can't be using bitcoin to go and buy regular things from the store and pay for groceries because of the nature of the transaction and how they take too long to be confirmed and how we have to pay for high amount of fees for small transaction, how could we be asked to be using it if we can't pay for small thing, this is the issue that needs to be addressed because once it gets easier to make these transactions, paying with bitcoin will become a normal thing.

1) Non-regulated form of money.
2) Highly volatile. A merchant will be discouraged to adopt a currency which is seen mostly speculatively.
3) Ignorance about the problems of the current financial system.
4) FUDs about the energy waste, criminal activity etc. (Which may also make them go against it)
5) It's difficult for them to understand the concept; it makes them give up on learning how it works.

What problems in Bitcoin's infrastructure prevent it from being adopted more easily?