Any new and disruptive technology has its share of detractors who do their utmost to imbue the perceived threat with negative connotations. This has been happening for eons, and will continue until the end of time.
The idea that people would need their own personal computer for work seemed ludicrous 50 years ago. Why would anyone need a device for making automated calculations? Today, though, it is almost impossible to function in modern life without using a PC.
The automated teller machine, or ATM, was thought to be a needless apparatus by many when it came out. Who would need access to money outside of bank hours? Now, more people use ATMs than go and queue in branches.
Bitcoin is a new concept edging its way into the mainstream, thus, it is not immune to negativity and unfavorable public perception. It is undeniable that the digital currency has its enemies, either real people or perceived notions. So what are some of the biggest problems it faces right now?
The centralization of bitcoin
The idea of mining, for many who first come across the concept of bitcoin, seems bizarre. When broken down into a peer-to-peer way of confirming transactions, however, it makes a lot of sense.
It made a lot more sense, though, when any bitcoin node, on any computer, had a chance to confirm transactions and thus be rewarded a block. But that doesn’t happen anymore.
Although bitcoin was built with good intentions in mind, altruistic systems are often exploited. And this is what has happened to the bitcoin network.
The problem is that there is little incentive to run a node anymore. That’s because powerful machines built specifically for bitcoin’s SHA-256 proof-of-work algorithm have changed its decentralized and more open nature.
