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Solving These 7 Challenges Would Accelerate Bitcoin Adoption

Cryptocurrency
20.06.2021
151
Solving These 7 Challenges Would Accelerate Bitcoin Adoption
Source: Adobe/Petkov

There are seven important challenges that are currently standing in the way of bitcoin (BTC) adoption, according to the Miami BTC conference participants speaking to Cryptonews.com – and yet, BTC is likely to see greater consumer and business adoption, which would also help its price.

Bitcoin 2021, a major conference focused on the world’s number one crypto project, was held in Miami, USA, from June 4–5 – gathering thousands of people in an in-person crypto event, one of the first of the kind since the onset of the COVID-19 pandemic.

The insiders talking with Cryptonews.com identified a number of significant – and as noticeable, interconnected – issues that slow down BTC’s mainstream adoption.

1. Scalability

This one is certainly not a surprise. David Shafrir, Co-Founder and President of GDA Capital, the capital markets arm of the GDA Group of Companies, named it as one of the biggest problems facing Bitcoin, given that the network, at the moment, is not capable of handling a large number of transactions. It is managing around 7 transactions per second (TPS), which is significantly less than Visa’s ceiling of 24,000 TPS, he said, adding that:

“This doesn’t bode well for use on a global scale, as increased usage would throttle transaction speed and hike fees to exorbitant levels.”

However, there are several solutions in the works, including the Lightning Network, which is a Layer 2 scaling solution designed to carry the weight of transaction data.

Solving These 7 Challenges Would Accelerate Bitcoin Adoption
7-day moving average. Source: bitinfocharts.com

Matthew Gundrum, the marketing director for cryptocurrency payroll service Bitwage, also stressed that, if Bitcoin hopes to receive more adoption, it needs to function as a payments system as well.

“In its current state, it is extremely impractical for transitions,” Gundrum said, adding that innovations like the Lightning Network may change this, as companies such as Strike already demonstrate this. __Learn more: – Bitcoin Eyes USD 40K Amid Musk Statement, Taproot Confirmation – The Bitcoin Lightning Network Grows Even If You’ve Forgotten About It

2. Business accepting it for payment

Business acceptance of bitcoin as a form of payment is a challenge, according to BitPay’s William Zielke. 93% of consumers with crypto indicate they want to be able to spend it, but many top retailers have yet to offer BTC as a payment alternative, he said.

Per a recent report by BitPay and interactive news platform PYMNTS, out of 8,008 US consumers (current and former cryptocurrency users and nonusers) surveyed in February, 57% of former or present crypto owners made at least one purchase using it last year, and 59% of consumers who never owned crypto are interested in using it to make purchases in the future. Meanwhile, a recent international survey by Mastercard showed that 40% of the respondents are considering using crypto as a payment method.

Author:cryptonews

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