The Obstacle Ahead for Bitcoin, According to Ted Bauman

Ted Bauman has recently made headlines when he pointed out that Bitcoin currently has a major problem that will need to be resolved if it is ever going to become a global currency. Once he pointed out this problem, everyone realized that what he is saying is absolutely true.

First, a little introduction into Bitcoin may be in order. Bitcoin is a cryptocurrency. It is operated by a decentralized network. This means that it is not something that is owned by any one person or government. Instead, it is open to anyone. Nobody really knows who invented it, but that person or group of people goes by the name Satoshi Nakamoto. Bitcoin is created by a process that is known as mining, which means when computers generate code to create Bitcoin. Only a limited amount of Bitcoin can ever be created. Anyways, Bitcoin is often hailed by many people are the future of currencies. They say that since it is decentralized and can not be manipulated or controlled by governments, it is the ideal solution for a worldwide global currency. In addition, they say, because it is not a real currency but a cryptocurrency, meaning a digital currency, it will be the main currency that people use in the future when everything is connected to the internet.

That may be true, but Ted Bauman points out that something is going to need to change if that were to happen. Remember the mining process? If mining is going on, you have to wait until the mining is finished if you want your transaction to go through. On average, Visa processes over one hundred fifty million transactions each day. They can process up to twenty four thousand transactions each second. Learn more about Ted Bauman  for more info.

When it comes to Bitcoin, however, it can only process six or seven transactions a second. Many transactions take ten minutes to be processed, while others have to wait forty five minutes or more. Ted Bauman says that Bitcoin may be a currency now, because not so many people are using it. However, if everyone were to start using it, there would be so many transactions to process that it would be impossible to use. If this is fixed, then all will be fine.

Ted Bauman is the editor of The Bauman Letter. He works with Banyan Hill Publishing as a financial analyst. More info here:


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