Losing your keys is strongly discouraged
The first of the limits to put forward on cryptocurrencies (Bitcoin Private Wallet Electrum) is that relating to the possession of security keys that allow for each to secure all of its transactions. Very practical, these keys are however the only way to spend the cryptocurrency that we have. Thus, if a user comes to lose his private key or if a virus manages to steal these codes, the financial impact could be important for a user.
The system could be underpowered on a Black Friday day
In addition, transactions take some time to be verified by minors. Thus, the current transaction rate is of the order of 7 transactions per second where that of the VISA network for example is capable of rising to 20,000 transactions per second.
An energy-consuming system
One of the most shared criticisms, and against which it is difficult to go, is that relating to the energy consumption of all cryptocurrency. All the computers that run to secure the various transactions must indeed be powered by a large amount of electricity, not to mention that necessary to cool the entire rooms encryption. To accurately evaluate this point, it would be interesting to compare, with equivalent transaction volumes, the energy consumption of the current system centralized around banking institutions and that of a cryptocurrency.
Difficult courses to anticipate
Finally, one of the important limits of cryptocurrencies (Bitcoin Private Wallet Electrum) remains their volatility. Indeed, the number of users still relatively small, the price of a cryptocurrency can have very large price variations depending on the confidence of the holders of the currency and the appetence of new owners. For example, the Bitcoin course has moved over the last 4 months of 2017 from $ 5,000 per Bitcoin to over $ 16,000 in December 2017.
What evolution for tomorrow?
Possible impacts on the financial market
For now, the financial sector as a whole is still on the subject of cryptocurrencies. If the impact of the blockchain mechanism begins to resonate within different financial institutions, few today imagine a short-term revolution in the financial model.
On the other hand, a few initiatives bear witness to the interest of the financial sector for these new currencies. For example, Crédit Agricole will test the Ripple currency for six months to pay the salaries of French clients working in Switzerland. Moreover, undoubtedly alerted by the extraordinary performance achieved on cryptocurrency trading, Goldman Sachs has clearly indicated that it wants to take into account these assets in their financial management.
The danger of centralizing a decentralized currency
Many questions exist and put the development of these alternative currencies on hold. Among the most important questions, one is central: the very foundation of cryptocurrencies to keep all transactions, the process of mining transactions becomes more complex. Thus, this essentially decentralized currency risks being centralized by the concentration of minors who must today develop a very important computing power to secure transactions.
While it is always possible to change the currency to reboot the mining, however, in use, this way of operating may be problematic for the user.
Global political reaction
Moreover, the stake around the currency is obviously political. By design, cryptocurrencies escape any kind of control of states that no longer have referents identified as banking institutions to manage the creation and circulation of money. How far can cryptocurrencies get rid of states? This is the central question to which nobody today really has an answer.
Reduce the energy bill
Finally, with the increase in transaction-related paperwork, the issue of consumed energy and dedicated storage space will quickly become central to these currencies. Failure to respond to this, the economic models of minors, for example, may quickly become complicated with a risk of hindering development.