Cryptocurrencies are being phased slowly into mainstream life, with more and more companies establishing themselves with product offerings rooted within the world of blockchain and ICO’s. However, there are solid criticisms against the flow of Cryptocurrencies and the ultimate demise of fiat currencies, and it seems that in Switzerland one of the most pro Cryptocurrency countries around, the criticisms have begun to surface too.
The Announcement Of BIS
The Bank of International Settlements or BIS announced in a meeting with the press that they strongly believed that Cryptocurrencies as a whole are not able to encapsulate the market as a whole. The representatives of the BIS added that as more and more users climb onto the various platforms and begin to make greater use of Cryptocurrencies, the system will face a degradation incompetency that will ultimately lead to users breaking away for security reasons.
Along with that, the BIS went on to list further critiques such as the fact that the current system has a set of obstructions to growth that have been built into the infrastructure of the system. In addition, there is also the undeniable fact that at present the Cryptocurrency system is unable to effectively handle all of the transactions taking place within it and there have been no practical solutions towards this crux of an issue.
Key Criteria For Currency Use
The BIS listed the ability of society to wholeheartedly believe in a form of currency and the ability for that form of currency to be easily rolled out across all manner of circumstances, as the two most critical factors in the mass adoption of a currency. At present, the Cryptocurrency network is not managed by key hubs of skill or authority, but are outsourced to the masses, and while this approach might work for the feeling of the community, it does not bode well for user ease or efficiency of events on the system.
Who Is BIS?
The BIS is no ordinary bank, the BIS has specialized in offering key insights on global finance and legislation to countries worldwide for more than 88 years; their thoughts on the state of Cryptocurrencies were summarized in their yearly publication released on the 17th of June.
And What Of Bitcoin?
Some of the issues that the BIS noted with Bitcoin, in particular, was the growing sluggishness in speed and performance of operations within exchanges and platforms (although this was not unique to BTC) and issues such as the high fee for BTC transactions. A far more pressing issue with BTC that was brought up is that at present, there is a maximum number of transactions that the system can be held at a moment in time, which will be a serious issue should the whole world seek to adopt Cryptocurrencies as the currency of the future.
Many companies are scrambling to find a solution to the issue of blockchain technology not being able to scale effectively, as one founder of Ethereum Vitalik Buterin put it; the company would be “screwed” without it. And it wouldn’t just be Ethereum who would be ruined, the whole of the Cryptocurrency movement would be left in the dirt should the technologies behind it not become able to withstand the demands of twenty-first-century economies.