Many people consider bitcoin to be the future currency. This new technology holds a lot of promise for moving money privately, safely, and free from government intervention. One problem with this digital currency is that it cannot process huge transactions quickly. According to Ted Bauman, the popularity of bitcoin could wane due to its slow processing speeds. Ted Bauman addressed the bit coin issue in the Bauman Letter, an article where he shares his business insights. He urged his followers to think of a time where bitcoin would be a widely accepted currency. He also did not hesitate to highlight one of the major drawbacks with this digital currency.
For example, think of having to make a payment at a machine so you can exit a parking lot. Let’s say you do not have your wallet or any cash or credit cards. On the other hand, let’s say the machine supports cryptocurrency. You decide to pay using bitcoin. After making the payment, you wait for over five minutes before your payment is processed and you are allowed to exit the parking garage. This is what Ted Bauman considers to be bitcoin’s major flaw.
Bitcoin Vs Credit Card Money Processing
When you compare bitcoin processing with credit card money processing, you will find a huge gap. For example, the Visa credit card can process up to 1,700 transactions per second compared to bitcoin’s seven transactions per second. Bit coin transactions take up to ten minutes and in busier times you could wait for up to 40 minutes. This slow processing speed could make people distance themselves from bitcoin.
How Can Bitcoin’s Major Flaw Be Rectified?
According to Ted Bauman the solution for the slow processing speed can be solved by reducing the amount of data that is processed in every mining block. Alternatively, increasing the size of every data block could increase the processing speeds substantially.
About Ted Bauman
Ted went to Banyan Hill Publishing in 2013 where he currently works as the editor of Plan B Club, Alpha Stock Alert, and the Bauman Letter. Bauman specializes in privacy, asset protection, low risk investment, and migration issues. Ted was born in Washington D.C. and immigrated to South Africa in his youthful days. He graduated with a postgraduate degree in Economics and History at the University of Cape Town. Bauman currently lives in Atlanta GA with his family. Click here.