THE WHOLE POINT OF CRYPTOCURRENCIES
All cryptocurrencies (at least most of them) are based on decentralization. The idea behind that is definitely good and theoretically help us moving towards a self-regulated currency system; this definitely works like a charm if we think about all of the DAPPS that are out there on the different blockchains.
Why would it be that bad?
Well, let me explain that a bit more clearly.
Block Production issues
The coinage is becoming more and more an oligarchy
- Mining difficulty (Proof Of Work)
The idea behind the mining difficulty is great: it automatically adjusts itself to make sure the block time remains the same whenever the network's hashpower changes.
BUT this makes mining an oligarchic thing: only those who initially participate to the mining process and the ones that have enough money and low electricity cost is able to participate in the effective coinage of a cryptocurrency - Staking (Proof Of Stake and DelegatedPOS)
If you think about it, it is not that much different from mining: only those with a dedicated high-performance system are able to apply for being a Delegator (e.g. Tezos) or SR (e.g. Tron) and effectively be able to process transactions and produce blocks.
Scam protection
I know that the whole point of the blockchain is that transactions are irreversible (with very few exceptions, e.g. Ethereum's nonce override for unconfirmed transactions), BUT
- People might feel much safer with Credit Cards and other systems like PayPal, because their centralization allows a better scam protection, refunding etc. This might in fact be one of the major things (along with the high volatility and the fact that you don't have physical ownership of a coin or a banknote) that makes "mainstream currency" (FIAT) people reluctant to adopt cryptocurrency as a payment method
This is at the same time a great setback and an enormous advantage for blockchain; depends on which side you are.
