What are the big problems in crypto today?

[Balmain]

Scam projects and liquidation within these projects are, in my opinion, the biggest problem. There are also some regulations and bans for other projects. Fraudsters and rug pulls significantly impact the market, which reduces trust. We shouldn't forget the excessive speculation and lack of real-world use many altcoins don't even have real-world applications and are only used for speculation, dumps, and pumps.

[Big Dirams]

The problem in the cryptospace is that due to lack of knowledge new investors think that crypto is a get rich quick scheme. They believe that if they invest today, they'll see huge profit overnight but that's not always the case.

FOMO is another problem. The fear of missing out when you see a coin pumping, you rush into investing on the coin unknown to you that the price was been manipulated by the dev. The worst is stacking up shitcoins without any bitcoin.

That just the silly mistake and silly mindset many new investors in cryptocurrency always bring and such mindset will just get them into losses and regrets. When a investors has a quick mindset of making money quick and easy in the cryptocurrency space and at the same time hoping that cryptocurrency would made them rich instantly then such individuals will not enjoy his or her journey in the cryptocurrency space.
There is always a process in becoming rich and it needs to be followed gradually and slowly and without following the process it will just be impossible to make profits. 
 
 

[coin-investor]

What are the big problems in cryptocurrency today? What problems need to be solved? Please advise me.

Volatility and uncertainty in the market are major problems for every investor; even if you are a seasoned investor, you could still lose, leaving you stunned by how the market works.
For new investors, it's the sheer number of scams and hacks that they cannot keep up with, as there are many schemes coming up to scam investors.

For the regional or local community, it's a restriction; the government wants to control everything and extract profit. They legalized cryptocurrency so they can milk the community.
With all these problems, we can still say that Cryptocurrency is doing great and will continue to be so.

[Kavelj22]

Could someone tell me what are those called memecoins used for? And why some of them have marketcap worth billions of dollars?

Stablecoins are another dilemma but sitcoins are much worth the attention.

Doge Coin at least had a use, it was great for small cost Transactions.  I do not know if this is still the case.  The rest of them however, they are mostly as useful as any other Shit Coin.  The only thing that drove their Market Cap so high was simply the 'Meme Coins' trend.  Think of the Pokemon trend from years ago or any other new 'collectible' trend that starts every year.  Or NFTs.  They are useless, but with the right demand they can do wild things.

I have mentioned memecoins as just one example from many other similar problems in the crypto space. I didn't mention fiat based stablecoins which are a real threat to the concept of decentralized blockchain concept as they are just a cryptographic form of fiat money. You can notice how many people use it over bitcoin and other major cryptocurrencies.

In CoinGecko, we can track over 17K to 25K+ cryptocurrencies in the active market. While the majority of them are built in existing blockchains, they are useless projects just acting as trading instruments. This is huge when considering their market value and without to mention a total number of 50 millions cryptocurrencies in total since 2010 including inactive ones. Wtf!!

[jossiel]

I remember the biggest problem way back, years ago was with the scam ICO projects. And I think that we're back to that the same problem.

Although they're no longer ICOs but then, the continuous creation of new projects that are likely a scam is unregulated and more people that are now in crypto means that they've got more potential victims.

This is a huge problem that we'll always see per cycle that we're going through. The narrative changes but they're all the same scam old tactics.

[Iamgoat]

Scam projects and liquidation within these projects are, in my opinion, the biggest problem. There are also some regulations and bans for other projects. Fraudsters and rug pulls significantly impact the market, which reduces trust. We shouldn't forget the excessive speculation and lack of real-world use many altcoins don't even have real-world applications and are only used for speculation, dumps, and pumps.

There are a lot of fake and scam projects within the altcoin market and this is as a result of the population of the various altcoin projects existing in the market to the point you are clueless which to go for and which not to go for. In the market, you have the altcoin, the stablecoins, the memecoins and so on. Those who are hungry for quick profits also look into which memecoins are currently pumping and dumping and they want to tap into such opportunities. Many of those who seek to trade these coins face a major issue with battling to understand which of the coin is legitimate and reliable.

[DanWalker]

I agree with you. That's a valid point. There are people like that around me too.
- Although I have been involved in observing cryptocurrencies since 2009, I do not own any coins yet.

And why is that?  Why dont you own any coins yet?

You have been "observing" since 2009 (literally the birth of the Genesis Block) and you are still sitting on the sidelines?  It seems to me that this is a problem that you should focus on solving.

If what he says is true, that he has been observing cryptocurrency since 2009 and still decided to stay out of it. This shows that he is the one facing the problem and needs to solve it, not the cryptocurrency industry.

Furthermore, I'm a bit skeptical about that statement. Because even if he was not involved in the market but with so many years of observation, it is hard to believe he did not recognize the major problems the market was facing.

[PrivacyG]

I have mentioned memecoins as just one example from many other similar problems in the crypto space. I didn't mention fiat based stablecoins which are a real threat to the concept of decentralized blockchain concept as they are just a cryptographic form of fiat money. You can notice how many people use it over bitcoin and other major cryptocurrencies.

In CoinGecko, we can track over 17K to 25K+ cryptocurrencies in the active market. While the majority of them are built in existing blockchains, they are useless projects just acting as trading instruments. This is huge when considering their market value and without to mention a total number of 50 millions cryptocurrencies in total since 2010 including inactive ones. Wtf!!

Unfortunately, this happens when a project like Bitcoin is Open Source.  People can and will copy it.  The large usage of USDT comes from people using Cryptocurrencies only as a mean to make more Money.  Right now, I would argue at least 8 out of 10 people are here only for that one purpose.

[RagnarTheThunderer]

Scam projects and liquidation within these projects are, in my opinion, the biggest problem. There are also some regulations and bans for other projects. Fraudsters and rug pulls significantly impact the market, which reduces trust. We shouldn't forget the excessive speculation and lack of real-world use many altcoins don't even have real-world applications and are only used for speculation, dumps, and pumps.

There are a lot of fake and scam projects within the altcoin market and this is as a result of the population of the various altcoin projects existing in the market to the point you are clueless which to go for and which not to go for. In the market, you have the altcoin, the stablecoins, the memecoins and so on. Those who are hungry for quick profits also look into which memecoins are currently pumping and dumping and they want to tap into such opportunities. Many of those who seek to trade these coins face a major issue with battling to understand which of the coin is legitimate and reliable.

Yeah I agree. The altcoin market is so crowded that scammers can hide easily, and most coins are driven by hype, not real use. Thats why rug pulls and pumps and dumps keep happening and people lose trust. If you're trying to avoid getting trapped, keep it simple, don't chase coins just because they're pumping, and be careful with projects where a small group controls most of the supply or liquidity. If there's no real product or users and the only plan is marketing, that's a red flag.

Most newbies get burned by trying to get quick profit. It's usually safer to stick to established coins and learn slowly than to jump into every new meme or next big thing.

[el kaka22]

The biggest problem I see is the careless investments and trading. Just the fact that memecoins and NFT's were once a hyped investment to so many people is enough by all itself to see how bad the market is. We should be seeing any of this normally, people should be using crypto to make sound investments and make some money smart way, and yet they are just throwing money away like it's the slot machine in a casino.

That is the biggest problem because it causes a lot of people to get scammed all the time and then they spread bad news about crypto and specially bitcoin like bitcoin made them lose money. I have always hated that, and people who make those investments and I hope it stops soon enough and regulated.

[Humblevirus]

What are the big problems in cryptocurrency today? What problems need to be solved? Please advise me.

If I may say, the big problem we are facing in the industry today is scammers and lack of knowledge. The reason why I said scammers and lack of proper knowledge of investors is that, over some years now, scammers are everywhere trying to scam people through the creation of memecoins and other ways, pretending to be real projects.Let us look at what is happening in the cryptocurrency industry today. Most places where people lose their money quickly are through all these shitcoins that are being created every single day with the intention of scamming people.

Because of the lack of proper knowledge, some investors, once they see a newly created coin and notice the hype around it, will just go ahead and invest in the project, not knowing it is a pump and dump project. In a few hours, days, or weeks, the coin will start dropping in price, and in the end it becomes an abandoned project.If this problem is to be solved, the rate at which new projects are being created should reduce. Also, people should try to have proper knowledge before investing in any kind of project.Most people who end up in pump and dump projects think new projects will always perform like the few successful ones because they do not have the proper knowledge to do their own research.Having proper knowledge before investing in any form of coin will seriously help tackle the problem and reduce the rate at which people are losing their money in the crypto industry.

[o48o]

Scam projects and liquidation within these projects are, in my opinion, the biggest problem. There are also some regulations and bans for other projects. Fraudsters and rug pulls significantly impact the market, which reduces trust. We shouldn't forget the excessive speculation and lack of real-world use many altcoins don't even have real-world applications and are only used for speculation, dumps, and pumps.

How are they a problem? The fact that anyone can create a token, it's a build in feature and trying to prevent scammers to create permissionless tokens is a slippery slope that would immediately backfire, because it's in the whole core of cryptocurrencies.

When you want permissionless transactions and freedom that don't exclude anyone, you get what you ordered. That's going to include worst of humanity as it won't discriminate anyone.

[uneng]

For me the biggest problem is the difficult in finding people to transact person to person, and the influence of centralized exchanges and banks in the industry. Those companies are attempting to turn crypto into a centralized environment where you needs their services in order to transact and hold cryptocurrencies, without any chances of doing it by yourself.

That is a big issue, because crypto is going on the exact opposite direction it was designed to work at first glance by early developers.

Let's say I have to receive a payment from a customer, but this customer can't transact his crypto outside of his exchange, so I will be forced to create an account on that exchange as well in order to be paid. Or, I may want to cashout my crypto from my banking account, but I can't, because the bank doesn't allow me to.

[reikagi]

This is all really sad. I feel sorry for everyone who lost their work. But I still haven't come to the point of thinking what innovation should solve. I think. A lot

[Kavelj22]

I have mentioned memecoins as just one example from many other similar problems in the crypto space. I didn't mention fiat based stablecoins which are a real threat to the concept of decentralized blockchain concept as they are just a cryptographic form of fiat money. You can notice how many people use it over bitcoin and other major cryptocurrencies.

In CoinGecko, we can track over 17K to 25K+ cryptocurrencies in the active market. While the majority of them are built in existing blockchains, they are useless projects just acting as trading instruments. This is huge when considering their market value and without to mention a total number of 50 millions cryptocurrencies in total since 2010 including inactive ones. Wtf!!

Unfortunately, this happens when a project like Bitcoin is Open Source.  People can and will copy it.  The large usage of USDT comes from people using Cryptocurrencies only as a mean to make more Money.  Right now, I would argue at least 8 out of 10 people are here only for that one purpose.

Nothing wrong with making more money from investing in cryptocurrencies. Some major coins have real use cases and an active community taking care of improving the network. Also nothing wrong with using the bitcoin code to create new projects like Litecoin or Monero that can have useful features beside bitcoin (cheaper transactions,privacy,scalability...). Nothing also wrong by creating as much cryptocurrencies as you want out of fun like memecoins or public figures coins, but without creating a fictitious value. We all remember the ICO based projects and the airdrop based projects. From where their value was derived if there wasn't been exchange platforms ready to list them and open the trading without any added value? I can't blame ordinary users who lost trust in the crypto ecosystem as whole calling it as a fertile space made for scammers and money launderers.

[PrivacyG]

Nothing wrong with making more money from investing in cryptocurrencies. Some major coins have real use cases and an active community taking care of improving the network. Also nothing wrong with using the bitcoin code to create new projects like Litecoin or Monero that can have useful features beside bitcoin (cheaper transactions,privacy,scalability...). Nothing also wrong by creating as much cryptocurrencies as you want out of fun like memecoins or public figures coins, but without creating a fictitious value. We all remember the ICO based projects and the airdrop based projects. From where their value was derived if there wasn't been exchange platforms ready to list them and open the trading without any added value? I can't blame ordinary users who lost trust in the crypto ecosystem as whole calling it as a fertile space made for scammers and money launderers.

Yes there is nothing wrong even if someone cloned Bitcoin and made the most dubious changes to it only as an experiment.  There is nothing wrong if people valued that Coin either.  But almost all Cryptocurrencies are there to serve no purpose.  I can appreciate Monero but that does not mean I will be happy about the Market being filled up with Shit Coins.

[Mozi.Hayek]

My biggest problem with Crypto is that I genuinely believe that it has the potential to solve many of the world's problems, but none of the proposed projects or tokens on the market seem to be trying to do that. If they are I missed it, or they're a complete failure.

Since the inception of Bitcoin, and the 2008' Financial crisis, we've recognized the complete and total failure of centralized and or government controlled fiat currencies and economic systems. Keynesian systems do not work, and it isn't because fiat isn't limited or finite like gold or Bitcoin, it's because it is controlled and manipulated by corrupt actors. It's much like every argument for centralized control vs localized control, decentralization is optimal as power is not concentrated or absolute.

There's no alliance of users advocating and promoting crypto as an alternative to corrupt fiat or other manipulated currency or store of value markets (gold, stocks, etc.)
There are virtually no incentives for people to start using Crypto as a tool for monetary transactions, at least freely or legally anyway. People need rewards, they need to see benefits of Crypto over what they already use. This is one of the worst parts for me right now as I believe the market is ripe for adoption if you just look at the last 5 years regarding corruption and inflation in traditional markets.
Crypto can't be expensive to transact with, and it can't be slow, it also needs to be easy to understand and use.
Crypto should not need it's own powerplant to run. We're all carrying supercomputers in our pockets, we should be able to figure this out.
Proof of stake isn't a real solution to the problem. It gets us right back to the original issue with fiat. The ones with the most capital or the ones who can mint the most capital are in control.
A static deflationary supply seems like a good solution, and it probably is for a store of value, but with a dynamic growing market this is not a great method for daily exchange and use.
You should not have to choose between various tokens for public vs private transactions. With fiat you use cash, even Venmo has a "private" function.

Yes and the scams as already mentioned, and the reputation, the nonsense coins, someone should take it seriously.

I'm sure I missed some things, but we're more than 15 years into this now, it should be better.

[Popkon6]

What are the big problems in cryptocurrency today? What problems need to be solved? Please advise me.

If you want to invest in cryptocurrency, you can definitely do it, but there are many risks involved. Currently, many people are more likely to lose their capital by investing in cheap coins, but in this case, I say you can invest in Bitcoin, the risk is much lower. However, you have to be careful with memecoin, small communities spread the coins among the community in the greed of earning money and after a while they run away.

[reikagi]

- Scalability  <----------------------->   Can a decentralized network process global transaction volume? 
- Privacy      <----------------------->   Can payments remain private yet auditable when necessary?     
- Security economics <----------->   Can the system remain secure for decades without excessive cost?

I think today's developments have not given us a precise answer to these questions.
What question would you thoughtfully add to this list?

[justdimin]

Scam projects and liquidation within these projects are, in my opinion, the biggest problem. There are also some regulations and bans for other projects. Fraudsters and rug pulls significantly impact the market, which reduces trust. We shouldn't forget the excessive speculation and lack of real-world use many altcoins don't even have real-world applications and are only used for speculation, dumps, and pumps.

Scam coins are the biggest problem right now, yeah!

There are so many scam coins and fake pumps going on, it's actually insane. Some newbies into trading don't know how liquidity works and they get scammed big time when they learn how liquidity works on DEX.

I am amazed how these scam coins actually reach the investors because there are people on Telegram who cry about losing money to a scam, but they don't know a lot about crypto. So, how these scammers reach them is a mystery to me.