It has been praised by many people around the world as the most convenient currency without interference from authorities and governments. That is probably the reason why its value has been ever on the rise compared to other forms of currencies. However, Bitcoin faces a major problem that could likely hinder its penetration into the mainstream financial market. According to Financial expert Ted Bauman, Bitcoin faces the challenge of being unable to process a large transaction of cash within a short time. Bauman says that is why most corporate organizations and the general public are still hesitant in embracing the use of Bitcoin to transact business.
Through his Bauman’s letter that he publishes on a monthly basis shading light on various financial issues, he urges his readers to envisage a time when Bitcoin will get recognition and acceptance in most parts of the world. He says that as much as Bitcoin will get recognition and acceptance worldwide, there are negative things that will be revealed about the cryptocurrency.
The best scenario of demonstrating some challenges that face Bitcoin is when you probably make a payment while exiting a parking garage. Since you have several wallets, you decide to pay your parking fee through Bitcoin since the machine accepts Bitcoin payments. Nonetheless, you stay there for over 30 minutes, and nothing is happening because you are waiting for Bitcoin to process your payment. If you were born lucky, the transaction might take a few minutes, and you will be gone, but on a bad day, such a transaction can keep you waiting for over an hour. Bauman states that slow processing of transactions is a major pitfall for Bitcoin. Read more at ezinearticles.com about Ted Bauman
When compared to the speed in which other major credit card companies process their payments, Bitcoin’ transaction speed is very slow. Just to compare the difference, Visa can process more than 20,000 transactions in a second. On the other hand, Bitcoin has the capacity of carrying out about 6 or 7 transactions in one second. And it is common for a single transaction to last up to ten minutes. That is why when people transact with Bitcoin and experience delays they fail to understand where the problem is.
Ted Bauman started working at Banyan Hill publishing in 2013, and he is currently the editor of Bauman letter, Alpha Stock, and Plan B Club. He specializes in asset protection, privacy, low-risk investment strategies and international immigration issues. His experience in various financial issues has kept the number of his followers and readers on the increase since he joined Banyan Publishing. Learn more about Ted Bauman at https://seekingalpha.com/user/48547799/comments