Even though Cryptocurrencies have been around for a few years now and most people have heard of them or at least Bitcoin, the Cryptocurrency industry still has a bad name for itself. This may be in part to all of the recent negative publicity concerning scams around Initial Coin Offerings which are pretty prevalent at the moment. However, there are a few more reasons that are behind Cryptocurrencies not being the most popular pupil in school. We have seen the same in previous years with the revolution of the world wide web so there are no real surprises about what is happening now with the digital economy and new technology available in Blockchain.
The Crime Game
As well as the scams that are already prevalent in the industry and well documented, there are also very prominent news pieces that highlight criminal activity. Russia has already been caught out and accused of funding illegal undertakings with Bitcoin. These stories may or may not be true but the simple fact is that they have reached the press and the public have been informed of said crimes.
Lots Of Power
As we are all well aware, the mining of Bitcoin takes up an exorbitant amount of power nowadays and this is only going to rise. Financially this is not good for those mining the Cryptocurrency but even more importantly, environmentally this is an absolute disaster. Sadly at the moment, the greener power resources cannot be built quick enough for Crypto mining so miners are researching all over the world for places to mine cheaply. And the concerns are only going to get larger with more and more power being used each month. The amount of electricity used each day to Bitcoin mine is now equivalent to the power used by Austria every single day.
All About Hacking
As has been reported on many occasions, hacking is still a very big problem in the Cryptocurrency industry. There has been a lot of money stolen from a lot of people which is not good for the digital economy or finance in general. It has been reported that there have been 56 cyberattacks over the last 7 years which is an incredible amount. And there is very little that can be done to retrieve the money that has been stolen.
It is extremely frustrating to see the industry being hit constantly with such bad press but as always with anything unknown or new to the market, there is always negativity. This will never change. Until the digital economy does become more mainstream and accepted in today’s society there is always going to be anxiety and concerns about the industry. By trying to flood the media with positive stories will help the matter as trying to keep the negative elements away from social media will be difficult. There also needs to be a lot more regulation within the industry which is starting to happen now as well as the introduction of best practices. Lets hope all of these changes start rippling out soon.