Drawbacks of Bitcoin Adoption
Vrikson Acosta
Leading Digital Transformation | Bridging Law, Tech, Policy & Ed | #AI #Blockchain #Tokenization #CircularEconomy #Governance #DigitalLiteracy #DataProtection | Seeking Onsite Opportunities Abroad
Since the “birth” of Bitcoin almost a decade and a half ago, its value has growth exponentially, specially in the last years, but also its value has decrease from time to time, even sometimes exponentially.
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Being Bitcoin the first cryptocurrency, it is considered for some, or most people in the crypto ecosystem, to be The King of cryptocurrencies. In fact, it is the cryptocurrency with the highest value, way beyond the one of any other cryptocurrencies. ?
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The number of Bitcoin supporters and user has also increase, yet still that number is not enough, as well as the percentage represented by the amount held or traded, compared to the whole money worldwide.
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Below are mentioned drawbacks for the massive adaptation of Bitcoin:
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v?Digital illiteracy, specially towards non-physical currencies
There are many people worldwide who are digital illiterate, as well as a lot of persons who are partially digital literate in a broad spectrum.
Either of the groups mentioned above, and even also people with a somehow high level of digital literacy, do not feel comfortable with non-physical currencies and other related assets, such as Non-Fungible Tokens, like some art or music piece.
I intend to digitally literalize people to get to know and/or lose their fear of getting into the crypto world, so that they would go from the only physical world, to the digital one, from the basics of Information and Communications Technology, all the way to take advantage of technology, and awaken their dormant Entrepreneurial and Productive selves.
That way they can be economically independent. Also, create responsible Bitcoin and other crypto assets related sites, with proper Know Your Customer mechanisms, or to even forcefully alert those who have to implement such protocols.
These now literalized people could make the necessary improvements on the electricity and Internet networks, or, as mentioned above, force whoever have to do it, to do so.
And, if the suggestions mentioned in the last two paragraph cannot, or would not, be implemented by whoever has to, then, what is left is to take their knowledge, and sell whatever they can, and flee out of there as soon as possible.
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v?Not robust Know Your Customer validation, and ways to reaching him/her assets
Institutions like exchanges, banks, and other related, like PayPal, have to implement or increase the Know Your Customer functionality, including their assets and transactions they get involve in.
Specially, these intermediary and/or custody institutions must look with minifying glass of all trades done.
Many times, some of the traders want to trick and steal other traders, and get away with it.
Intermediaries must make easier for traders to report a fraud, such as the other party got what was contracted, but the one filing the report did not get anything, but frustration. Especially when intermediaries take side with the party that got away with the theft.
Intermediaries like PayPal must understand that not all transactions are regarding to buying goods, but for services like exchanging currencies, and not like consulting. Especially if at least one of the parties is in an exchange-controlled economy, with hyperinflation and hyper devaluation, like the one north of South America.
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v?Lack, or insufficient, amount of money to getting involved in the crypto world
There are many places in the world where the amount earned is low compared to other places. For example, places where there is high inflation, high devaluation, monetary exchange control, uncontrolled expropriations, and other economic disturbances.
So, people in those places hardly have enough money to pay for food, as well as for things like rent, electricity, gas, water, Internet, transportation, else. Much less, those people have any money to invest in cryptocurrencies or anything else but to barely survive.
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v?Electricity and Internet instability or almost lack of either or both of them
Not everywhere there is constant flow of electricity and Internet. As well, when there is Internet, more times than desired, it is so slow that text in some apps are received, and hopefully sent, but images or videos cannot be downloaded, much less uploaded.
Also, a lot of places suffer from recurrent cuts of electricity for a short time, which cut off Internet, and makes equipment to be restarted, or could be damaged, from these regular short cuts of electric fluid.
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These are some of the drawbacks of Bitcoin adaptation, and by minimizing or eliminating them the adoption level most likely increase, even exponentially. Also, promoting for people to enter and stay in the crypto ecosystem as mentioned below.
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Advantage
On the other hand, there is at least an indirect advantage, that most likely help increase the number of user and Bitcoin mined or traded.
This can be accomplished, using a non-pushy strategy, by getting involved in the crypto ecosystem using cold wallets storing special Non-Fungible Tokens, NFTs, of personal documents, as explained in the article “Non-Transferable Non-Fungible Tokens of Personal Documents”:
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ABOUT THE AUTHOR
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Vrikson Acosta is a digitalization consultant in Web3 (DLT, BTC, NFT, SBT), digital (literacy, governance, security), data protection, and his profile can be found at https://linkedin.com/in/vrikson-acosta
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Bitcoin Talents Philipp Sandner Dr. Constantin Lichti Daniel Holk ?? Jong-Chan Chung Sebastian van Staa Dominik Peer Alexandra Overgaag Isabell Welpe Maximilian A. Gutsche Frankfurt School of Finance & Management FS Blockchain
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