Bitcoin has made headlines around the world and is now a household name, but what does that mean for you? Ted Bauman has a depth of knowledge in finances and investing, proven by many requests from influential clients ranging from the United Nations and the World Bank. He discusses bitcoin regularly on many platforms to include.
Bauman shines a light on why investors must be wary of the Bitcoin craze many investors may be faced with. Though the Bitcoin system is extremely secure and a person to person (P2P) transaction it is also dreadfully slow. Current forms of currency like paper or even credit cards are nearly instantaneous, with cash simply handing someone a coin or bill and getting change or a simple swipe of a credit card and your purchase is complete. Bitcoin, on the other hand, took over 11,000 minutes, or over 7 and a half days, for an average transaction on January 22, 2018.
Some may say that a long transaction is the price to pay for security. This may be true but let’s think this through. Let’s create a hypothetical scenario, a man is going on vacation and decides to fly to California to visit the beach. Knowing he will be flying he doesn’t take large bills and decides to rely on a credit card and Bitcoin. Once getting of the plane he realizes his wallet is missing. This is not good, but all is not forsaken since he has enough money in Bitcoins to enjoy his holiday. The issue now though is how will he pay for a rental car, or hotel, or food. If transactions can extend up to days to complete well the enthusiastic vacationer will be waiting to get a rental for much longer than he hoped and will waste away his vacation waiting on authorizations. Read more about Ted Bauman at Bloomberg
There are different forms of reducing the time for transactions, unfortunately due to security concerns friction from Bitcoin executives is persistent. This is to not disregard Bitcoin as established cryptocurrency. Bauman states work is being done to mitigate transaction times and work looks optimistic with steps such as Bitcoin Cash and continued work to decrease wait times. In the future Bitcoin may be a polished and exceptionally secure payment system, but for now don’t put all your coins in one cryptocurrency. Read:https://banyanhill.com/expert/ted-bauman/