Challenges Cryptocurrencies Are Facing Today

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Challenges Cryptocurrencies Are Facing Today

You must be hearing a lot about blockchain and cryptocurrencies lately! And why not; it’s their pinnacle!

Appearing on the world stage on the back of the global financial crisis, cryptocurrencies have taken the international financial systems by storm. Some even say that crypto will replace fiat money in the near future. Carl Runefelt is one such global crypto leader, crypto advocate and social icon who has invested in more than 350 crypto startups.

He predicts, “Cryptocurrencies are genuinely game-changing and that they represent a massive transformation for the global economy and, indeed, the whole globe. They represent a paradigm change.”

He often opines, “We live in a digital world, we need digital money, and we need non-political digital money and Bitcoin is the resolution and I think that right now people are realizing it, but it will take some time before we see the full transformation.”

Today countless businesses have readily adopted crypto without relying on the traditional banking systems. Cryptocurrencies are not only time-effective for them but also cost-effective.

On the flip side, the crypto sphere attracts aspiring cybercriminals and rogue elements that are on the lookout to steal your crypto portfolio. Still, its market capitalization continues to grow – touching $2 trillion now.

So what are the recent challenges that are halting the rise of cryptocurrencies?

Let’s find out

Shaddy Reputation

Bad imagery has been an anchor for cryptocurrencies that hinders their progress in the right direction. Low-quality advertisements, hard-to-believe, get-rich schemes, and cringe campaigns have overshadowed its charm to a certain segment. Many argue that they feel like an extension of age-old frauds and scams.

Irrespective of it, cryptocurrencies’ adoption has been a tale of success. People are approaching it in leaps and bounds, but still, it scares off the more knowledgeable individuals.

Carl Runefelt is confident that time is around the corner when there will be global acceptance of cryptocurrencies when they learn about their benefits. In one of his interviews that is present on his YouTube channel, The Moon, he says, “Cryptocurrency is recognized across the world and is not affected by exchange or interest rates. It would also provide individuals living in economically fragile nations more stability and predictability.” 

At Loggerheads With the Authorities & Policymakers

The bedrock of blockchain and cryptocurrencies is to get rid of powerful intermediaries and give power back to the people – the essence of decentralization! But owing to ever-increasing risks and threats associated with cryptocurrencies, governments and policymakers have stepped up their efforts to implement measures that will regulate this burgeoning industry. For them, it’s the wild west!

But again, this defeats the sole purpose of cryptocurrencies. Carl Runefelt, who is an advocate of cryptocurrencies, says, “Bitcoin is the only non-political money in the world. Remember guys your bank money can get frozen, your gold can get confiscated, but Bitcoin remains whether you’re in Slovenia or Sweden or Dubai. No matter where you are, Bitcoin is always online, always working for you, and for everyone else. I think that is revolutionary, and I am so happy to be part of Bitcoin, especially in times like these of massive global uncertainty.”

Crypto is Still is In Its Infancy

Cryptocurrencies have been out there for over a decade, but still, they haven’t matured enough. That is to say, it is still emerging. There are a number of limitations that stonewalls their headway.

Interoperability:
Different cryptocurrencies are used for various industrial processes. The technology does not offer interoperability.

Usability:
Just to enter the crypto world, you have to go through the nerve-wracking validations. This makes cryptocurrencies cumbersome for general people.

Scalability:
You have a system of country-wise currency exchanges for different currencies. These systems are scalable and cater to numerous different fiat money rates. Cryptocurrencies struggle in this arena. They still need time to reach a stage where they can be termed scalable – at par with Dollars or Yens.

Crypto Will Find Its Way

No matter how many challenges gallop at cryptocurrencies, they will be dodged in the long run. Cryptocurrencies are here to stay, and soon, they will run over the financial systems we know today.

Carl Runefelt, while talking about the prospect of pioneer crypto Bitcoin, predicts, “Bitcoin rising 600% and hitting $300,000 this year, how? Well, first of all, I think that Bitcoin is the best hedge against inflation that we have in the world right now and Bitcoin is also the best form of money that we have and have maybe ever seen in the history of humans with that said, fiat is the worst form of money that we have seen in the history of humans, and I see a huge transition now where we’re gonna go more and more towards a crypto economy and I am super excited about that.” 

In a nutshell, crypto is the next big thing of the 21st century!

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