Bitcoin may by seen as the currency of the future to many investors and technology aficionados, but to experts like Ted Bauman the popular, decentralized cryptocurrency has some serious problems and isn’t quite up to speed with more mainstream forms of currency. These shortcomings are mainly based on transaction speed and scalabilty of bitcoins. Visa’s current credit card processing technology can handle approximately twenty thousand transactions a second, Bitcoin’s current processing technology can handle about 7 per second and the transactions often take around ten minutes to complete. While this inconvenience may be okay for ordering a shirt off of a website, it is in no way convenient for purchasing things in the physical world. Imagine having to wait ten minutes, or worse, just to purchase a coffee or groceries with a line quickly forming behind you. With the cryptocurrency quickly becoming accepted in more and more places, this is soon to be a reality and the wait times will increase unless something is done.
— Ted Bauman Guru (@Ted_B_Guru) January 18, 2018
Unfortunately, nobody seems to be able to come to an agreement with what should be done to fix the problem without sacrificing the security of bitcoin. The problem with finding a solution lies in what bitcoin inherently is and where it’s stored, or more accurately, isn’t. With bitcoin, there is no real physical currency and each new bitcoin introduced to the market is “mined” using a network of computers and cannot be spent or transferred until the process is complete. The decentralized nature of the currency also means that it’s not stored in any one particular place and is actually stored on an ever-changing network of computers located across the globe. This is fantastic for keeping individual governments from controlling the currency, but absolutely awful for any type of regulation for convenience’s sake. If this problem isn’t addressed, it could mean a slow death for bitcoin devolving it back into the novelty it was in the beginning. Read more about Ted Bauman at Bloomberg
Ted Bauman was born in Washington DC and later emigrated to South Africa where he earned two post graduate degrees from the University of Cape Town. He specialized in low cost housing-developments as a consultant, fund manager and researcher during his twenty years in South Africa.
Ted Bauman currently lives in Atlanta, Georgia and has since devoted his time to researching and writing about asset protection, investment planning, and international finance. Learn more:https://seekingalpha.com/user/48547799/comments