Cryptocurrency Digital Wallets for the Unbanked and Retail UsersNovember 28, 2018
Cryptocurrency issuers can provide a positive coverage for the unbanked population. They can offer digital wallets to unbanked people to ultimately prevent fraud. This will also help replace outdated systems with efficient financial wallets. It is important to ensure that the updated versions are the ones that we can live with.
The largest of the cryptocurrencies will need vast amounts of energy to work efficiently. There are more than 159 independent nations, and the amount of energy consumed by blockchain technology is more than the combined power usage of the 159 countries. This creates a huge environmental issue.
The blockchain is a promising technology for which the huge electricity consumption in the mining process is a core issue. When Bitcoin was introduced, there was no regulator. Miners verified the transactions over the network by solving cryptographic problems. These problems were a lot similar to complex math problems.
The verified transactions are further converted to blocks. These blocks were then added to the blockchain. The blockchain is a record of all the public transactions that take place over the network. Miners do this job in return for a small value in Bitcoin. The Bitcoin since then increased multifold in value, and now it is facing a bearish trend.
Several sectors are willing to take advantage of cryptocurrencies. Everyone from those who sell cryptocurrencies to those who sell software applications like wallets is researching and working to establish the needful for the retail use of cryptocurrencies. This is inclusive of attempts that talk about how to become rich with cryptocurrencies via conferences through several other processes where billions of dollars have been poured into the crypto industry.
Despite all this, it is seen that the crypto is failing as a digital currency for reasons related to sustainability and regulatory stringency. The best in the industry crypto like the Bitcoin has lost nearly 80% of its value. Whether as an idea or the investment, the crypto hype is being challenged by the real-time trends and data as it unfolds every day. Regardless of the high potential of the crypto, it is being projected as a worse investment idea by many.
Crypto is not an asset type that produces wealth. Some investors think that they own the blockchain technology. Neither is true. It is not a commodity. And, therefore regulators are not considering it as a store of value. It is just a currency and therefore can be used as a means of exchange per regulators. However, it is a currency that is unprotected. When it becomes protected by regulators, the rest is history.