Why today's cryptocurrencies are doomed

[Anders]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

[darkota]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

Your're assuming that All of today's cryptocurrencies are made for one purpose, to infiltrate the mainstream population which is not true. There are many niches that Needs to be filled in the cryptocurrency secter.

For ex: One niche would be a store of value coin, another would be a privacy/anonymous coin, etc.

[kbm]

Clearly you forgot #8 :

8: The propagation of information is limited to the speed of light. Therefore in the year 3973 people on Earth won't be able to keep the same blockchain as the people across the galaxy. Just won't scale. Transactions could take millenia! Clearly doomed!

[darkota]

Clearly you forgot #8 :

8: The propagation of information is limited to the speed of light. Therefore in the year 3973 people on Earth won't be able to keep the same blockchain as the people across the galaxy. Just won't scale. Transactions could take millenia! Clearly doomed!

Actually, there are supposed things faster than the speed of light.

http://gizmodo.com/5908206/did-scientists-really-just-break-the-speed-of-light

[kbm]

Clearly you forgot #8 :

8: The propagation of information is limited to the speed of light. Therefore in the year 3973 people on Earth won't be able to keep the same blockchain as the people across the galaxy. Just won't scale. Transactions could take millenia! Clearly doomed!

Actually, there are supposed things faster than the speed of light.

But bitcoin uses the internet!

[BitCoinDream]

Clearly you forgot #8 :

8: The propagation of information is limited to the speed of light. Therefore in the year 3973 people on Earth won't be able to keep the same blockchain as the people across the galaxy. Just won't scale. Transactions could take millenia! Clearly doomed!

Actually, there are supposed things faster than the speed of light.

But bitcoin uses the internet!

Tomorrow's internet may run on Higg's Boson

[Anders]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

Your're assuming that All of today's cryptocurrencies are made for one purpose, to infiltrate the mainstream population which is not true. There are many niches that Needs to be filled in the cryptocurrency secter.

For ex: One niche would be a store of value coin, another would be a privacy/anonymous coin, etc.

If that was true, we would have seen a success story by now. Bitcoin is a success for investment and currency trading, but could be a limited one. We will see. I stick with my prediction that the bitcoin price will not go much higher than $5,000 because of lack of mainstream adoption.

[BitCoinDream]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

If u were in 90s, u would have said the internet will fail too. Some people simply cant see the future...

[BitCoinDream]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

Your're assuming that All of today's cryptocurrencies are made for one purpose, to infiltrate the mainstream population which is not true. There are many niches that Needs to be filled in the cryptocurrency secter.

For ex: One niche would be a store of value coin, another would be a privacy/anonymous coin, etc.

If that was true, we would have seen a success story by now. Bitcoin is a success for investment and currency trading, but could be a limited one. We will see. I stick with my prediction that the bitcoin price will not go much higher than $5,000 because of lack of mainstream adoption.

Though Bitcoin's success is not in its FIAT valuation, here is an interesting stat that u may like...

A statistical explanation why 1BTC may equal 1M USD in future...

Value of 1BTC (around figure)

2009 => 10^-2 USD
2010 => 10^-1 USD
2011 => 10⁰ USD
2012 => 10¹ USD
2013 => 10² USD
2014 => 10³ USD
2015 => 10⁴ USD
2016 => 10⁵ USD
2017 => 10⁶ USD

--- Early Adoption Ends Here and The Price Stabilizes ---

[rdnkjdi]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

9.  While largely heralded as the antithesis for inflation - deflation (block halving down to nothing) results in early adoption getting wealthy by the magnitude of adoption.  At the expense of the wealth being represented by more coins / inflation. This directly discourages future adopters as the wealth goes towards the early people rather than spreading to more units.

[rugrats]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

Don't feel up for a debate right now, but would like to point out that item 6 is an anathema to the basic principles of crypto in general.

[tspacepilot]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

What does this mean about "under the mattress"?

[Anders]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

If u were in 90s, u would have said the internet will fail too. Some people simply cant see the future...

I wrote today's cryptocurrencies. I actually believe some new cryptocurrency will become a huge success. And one issued by an official authority. With fast transaction times, zero transaction fees, a user ID system and stable price.

The biggest problem today is cold storage. That's worse than money in the Dark Ages. And trusting some third party like MtGox is also horrible.

[Anders]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

What does this mean about "under the mattress"?

That's the biggest problem! Cold storage. An absolute nightmare to have manage oneself even for a crypto-savvy person. Some people may enjoy storing private keys on paper etc, but those are the fanatics. For ordinary people the mess with having to secure the coins oneself is a major step backwards, into the Dark Ages.

[OC19850520]

9.  While largely heralded as the antithesis for inflation - deflation (block halving down to nothing) results in early adoption getting wealthy by the magnitude of adoption.  At the expense of the wealth being represented by more coins / inflation. This directly discourages future adopters as the wealth goes towards the early people rather than spreading to more units.

4 years between halvings is actually a lot of time, so I think it is fair. Much larger impact is the number of people mining, but you can not have both - high adoption and everyone mining full Bitcoins...

[BitCoinDream]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

If u were in 90s, u would have said the internet will fail too. Some people simply cant see the future...

I wrote today's cryptocurrencies. I actually believe some new cryptocurrency will become a huge success. And one issued by an official authority. With fast transaction times, zero transaction fees, a user ID system and stable price.

The biggest problem today is cold storage. That's worse than money in the Dark Ages. And trusting some third party like MtGox is also horrible.

There is already one for you. It is called FB credit.

By the way, do u understand the basic concept of decentralization ?

[Anders]

There is already one for you. It is called FB credit.

By the way, do u understand the basic concept of decentralization ?

The official cryptocurrency will be decentralized and peer-to-peer. FB credit? Sounds like Linden Dollars. 90s technology.

[BitCoinDream]

There is already one for you. It is called FB credit.

By the way, do u understand the basic concept of decentralization ?

The official cryptocurrency will be decentralized and peer-to-peer. FB credit? Sounds like Linden Dollars. 90s technology.

There is nothing official in the world of cryptos. Please come out from old school thoughts. Official means centralized and we already have a lot of centralized currencies.

[tspacepilot]

The original Bitcoin protocol is very innovative. However, there are several reasons for why today's cryptocurrencies will fail:

1. Too slow transaction times for general use.
2. Too bloated block chain for mainstream adoption.
3. Having to store coins "under the mattress" is a step backwards.
4. Proof of work will lead to too large transaction fees.
5. Proof of stake leads to the rich getting richer.
6. Lack of government support prevents mainstream use.
7. Trading against ordinary fiat currencies causes volatility.

What does this mean about "under the mattress"?

That's the biggest problem! Cold storage. An absolute nightmare to have manage oneself even for a crypto-savvy person. Some people may enjoy storing private keys on paper etc, but those are the fanatics. For ordinary people the mess with having to secure the coins oneself is a major step backwards, into the Dark Ages.

Hmm, I'm not sure I agree.  I guess I'm a "fanatic" because I printed out a paper copy of some keys to be safe from a computer crash but I don't know why that's so crazy.  What do you do to secure anything else on a computer that's important to you?  I'll let you know what I do, I make backups and store them somewhere cool and dry.  Here's the LOCKSS rule: lots of copies keeps stuff safe (a librarian told me that).  As far as security, again, isn't this already an issue that's bigger than cryptocoins?  Here's some rules of thumb: don't run windows, don't install programs you don't inspect, encrypt sensitive material.

I don't see how these issues of backing up and securing data are relevant to crytpocoins specifically. They seem to me like general issues related to keeping sensitive/important information on a networked computer.

[JimminyCricket]

Cryptos are very, very far from being doomed. Yes, mainstream adoption has been disappointing.
High-street Western peoples are unenthusiastic as there are no advantages over their debit cards or credit cards.
However, there is still plenty of scope for massive growth in many areas, including amongst the unbanked peoples of the 3rd world, and in any country experiencing a major banking crash.