Ted Bauman: The Downside Of Bitcoin And Possible Solutions

Home / Ted Bauman: The Downside Of Bitcoin And Possible Solutions

Just like the two side of a coin, Bitcoin has an upside and a downside. The upside is that because it is a decentralized currency it has no central administration governing it, thus making it private and secure. The downside, according to Ted Bauman, is that it takes a lot of time to process transactions, thus making it an inconvenient mode when you are in a rush.

Bitcoins get generated through a process known as mining. For every transaction to get completed one has to wait for the mining process to run through and this can take even more than 40 minutes. Therefore, this means that as more people adapt to the use of bitcoin as a currency in its current state, the lines of people waiting to get served will only get longer. Bitcoin can only process about 6.5 transactions per second. Compared to the more than 1,700 per second operations run by credit cards, the cryptocurrency leaves a lot to be desired.

One solution to the problem of the bitcoin wait time as suggested by Ted Bauman is to reduce the amount of data that needs to get processed during a mining process. Either that or an increase in the number of mining blocks so that more data can get processed at once. As a cause of action, two new technologies got created, one known as a Hard fork which handled new transactions by making larger systems from old operations thus increasing the speed of data processing. The other technology, branded segregates witness, worked by transferring bits of data to a place where it does not need verification. As a result, this reduced the security of bitcoin and more people soon opted for a hard fork.

Hard fork technology brought with it Bitcoin Cash, a cryptocurrency in which bitcoin owners were all awarded some Bitcoin Cash equivalent to the number of bitcoins owned. The popularity of Bitcoin Cash increased while Bitcoin transactions value decreased. Being at its lowest when segregated witness technology was utterly wiped out. Bauman can only advice bitcoin enthusiasts to watch out for the new technologies that crop up because someone might just come up with a permanent solution for bitcoin.

Ted Bauman is currently the Editor of The Bauman Letter and Plan B club at Bayman Hill Publishing. He moved to South Africa from his hometown, Maryland, USA, to attend the University of Cape Town where he attained postgraduate degrees in Economics and History.

Ted Bauman stayed in South Africa for 25 years and got recognized as one of the engineers behind Slum Dwellers International, an organization currently operating in more than 33 African countries offering aid to slum dwellers.

For more information about Ted Bauman, Click:https://www.linkedin.com/in/tedbauman

 

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