4 Major Problems that Crypto Verse MUST Deal with to Prosper
As the crypto industry is scaling at a rapid pace, there are new developments and possibilities to be witnessed in the future. With these developments come new hindrances. However, all these hindrances are not new to the crypto market; some of these problems are being dealt with by the crypto industry from quite a while.
Keeping track of these hindrances is a difficult task. So, we have come up with a list of problems that crypto verse has to solve in order to prosper.
#1 Expecting the cryptocurrencies to behave like traditional currencies
Cryptocurrencies have their own pros and cons. They have a separate ecosystem and have a different set of rules that governs this ecosystem. To meet the expectations of traditional investors for more stability, products like stablecoin has emerged.
Tether, a stablecoin, is integral to the crypto industry right now. But Tether is still struggling with the lingering questions of its future viability. The stablecoin is currently entangled in a fraud investigation launched by the NYSAG stopping from the financial troubles.
#2 Crypto exchanges still can’t protect themselves
The continuous onslaught of hackers on exchanges has made many people doubt about their security. Some even think that it is stupid to store coins in an exchange as it is fallible. Others believe that it is due to the lack of institutional standards for security.
The disappearing of coins in an exchange can be of two reasons, either it’s an inside job or a hackers’ exploit of the technical bug or smart contract. In some cases, phishing techniques are also used.
#3 Privacy vs. Security
Bitcoin is the first cryptocurrency and was created by an anonymous group of individuals. However, we are way past that era, and as the cryptocurrency industry is growing, we need some protocols and security systems. That’s why the know-your-customer (KYC) protocols have been introduced almost in every blockchain and cryptocurrency network.
Though, it is a positive sign for crypto to get some standards for security. However, providing exchanges your personal, private data might be dangerous in its own way. The right balance between security and privacy is yet to be achieved.
#4 Price manipulation is still rampant
Bitcoin is still considered a relatively small asset in comparison with more established assets. As it can be controlled and manipulated by high-net-worth investors known as whales. Exchanges also control the cryptocurrencies as well. Tether is accused of the same, as the company that operates the coin also operates the crypto exchange.
Conclusion
Investors need to understand that the crypto market is different from the stock market. They should not compare both. Apart from being much more volatile, the crypto verse also has associated technological glitches that are in the process of getting rectified. However, this doesn’t mean that investing in crypto right now is not apt for traditional users. In fact, it is the best time to invest in this new technology, because once stabilized, it will return huge profits.
To educate investors, Platon Finance has come up with a comprehensive education hub — Platon Club, where members can get reliable crypto information and news.
Published at Tue, 16 Jul 2019 06:03:31 +0000
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