Why People are Abandoning Cryptocurrencies


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One must be aware that Cryptocurrencies are still a developing currency, without government controls. Therefore, it is necessary to be aware that several problems can happen, such as thefts or a sudden devaluation of currencies, which can result in financial losses for those who want to use cryptocurrencies as a form of investment.

A big change in cryptocurrencies will happen soon, but nobody is quite sure of the result. At best, they will be enhanced and will increase your transaction capabilities. If all goes wrong, Bitcoin could be divided into two or more different currencies — an unprecedented event that would start a turbulent period in the $ 44 billion markets.

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What is the problem with cryptocurrencies?

Specifically speaking of Bitcoin When you make a transaction in bitcoins, it needs to be verified and registered among thousands of computers on the network. This takes a lot of processing power, so the owners of the machines (the miners) make money from this task. Basically, who pays higher fees gets their transaction processed first. And the registration of all transactions is done on the blockchain. This is where the problem lies: each block has a limit of 1 MB, which allows you to register about 2 thousand transactions. But a block is only released every 10 minutes. Doing the math, this means that Bitcoin can only process 7 transactions per second.

How do you want to correct this problem?

One of the changes being implemented in Bitcoin is SegWit (Segregated Witness). It’s quite complex (you can go into it here), but what you need to understand is: it increases the capacity of transactions and still fixes a problem known as malleability — when a malicious member in the network modifies your transaction, causing it is not performed.

Are cryptocurrencies worth investing in?

It is no accident that so many people have been talking about Bitcoin. The cryptocurrency has already risen more than 10,000% in just one year and broke historical records in 2017: a single bitcoin was worth more than ten thousand reais. And many people believe that Bitcoin will not only continue this exponential rise but one day it may replace the currency that we have.

Calm! Is it worth investing in bitcoins? What is mining? Will Bitcoin be the world currency? How does a blockchain live, feed and reproduce?

One of the reasons that people are making cryptocurrencies abolish and that they report that about 12 hours of mining yields about 0.30 BTC, on the subject, is argued to be a terrible investment. After all, is there really a profit in this? putting on the tip of the pencil the cost of the energy spent in these 12 hours, the wear and tear of the computer cooler, among other aspects? Well, the subject is still quite contradictory.

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Planetadigital
Planetadigital

Iam freelancer since 2017 , I love writer and help people with my articles


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