2020 Global Challenges for Cryptocurrencies (2023)

Blockchain, bitcoin and cryptocurrency are some of the terms you might have heard at some point in your life. Especially in the last decadeCryptocurrency has become the talk of the worldeconomic forums. Cryptocurrency was one of the hottest topics when many authorities began to question the future of investments, cash and similar resources.

2019, just beforeBlockchainmay have experienced a period of public acceptance, the revolution came to an abrupt halt. AccordinglyGartner Group, has been dubbed “blockchain fatigue.” Other experts have also joined the train fueled by blockchain and virtual technology.coin, generally failed. People thought maybe it was a phase that lasted too long.

Pragmatically, the perspective is wrong. according to latestThe statistics, the encryptionMercadohas an estimated total market capitalization of over $155 billion (as of March 15, 2020). Considering these numbers and based on many financial institutions, the powerful tend to disapprove of cryptocurrencies but prefer blockchain technology. The disruptive nature of decentralized currencies like bitcoin and others has resulted in a consequent halt to their progress.

Let's find out what other challenges cryptocurrency will have to face throughout 2020.

The following are the challenges that are hampering the growth and adoption of cryptocurrencies on a global scale.

There is no doubt that where cryptocurrency faces the challenge of surviving and being accepted by the masses, blockchain technology has already surpassed it. The masses largely accepted it andbig names in world tradeExperts are now moving towards blockchain.

Companies like IBM's Trade Lens and Maersk's joint blockchain investment in the shipping industry have already welcomed the first move. Many of these overwhelming initiatives are underway, involving blockchain beyond the realm of cryptocurrency. The challenge for crypto enthusiasts here is that once blockchain technology takes off without crypto, it will be the end.

2020 Global Challenges for Cryptocurrencies (1)

Cryptocurrencies still have a PR problem even after a boom phase. The associated terms are enough to conjure up images of scary ads, shoddy campaigns, bad actors, get-rich-quick schemes, and criminals. For many people, cryptocurrency represents a new technology for old scams and scams they don't want.

Given the size of a cryptocurrency and the blockchain industry, this might seem like a minor issue. However, this problem has crippled cryptography for years since its inception and will continue to do so unless a savvy individual speaks out.

(Video) Economist explains the two futures of crypto | Tyler Cowen

The US Constitution is known around the world for the right to protect the democratic entity that is the country.Free expression, access to information and the right to form opinions are openly protected by employees. However, when it comes to financial assets and resources, our laws, governments, and system agencies are designed to restrict you from those in power.

It's evident why it has taken cryptography and blockchain over a decade to adapt in an economy where they have had to deal with issues that arise at the core of how our economy and society work.

The. Lack of legislation

Digital currencies are decentralized virtual entities. These are purely digital products and our authorities are not ready to deal with this advanced technology. Because of this, the lack of legislation to regulate these digital currencies and provide any kind of user protection has become a major challenge.

The essential step that needs to be taken to reduce risk is to educate and inform people about how to protect their personal information. There is still a gap where insurance and specific legislation needs to be placed. But until then, awareness of how to safely exercise crypto is crucial.

B. Legal Obstacles

Aside from the lack of legislation, the other major hurdle that is preventing cryptocurrency holders like Bitcoin traders and users from spending their fortunes. The untraceability of bitcoin and its bad image asFunding mode for mega criminal activitiessuch as terrorist attacks and drug trafficking has become quite a scandal in some countries.

The cryptocurrency is going through an abrupt stop phase where nothing seems to be happening around the technology. As such, there is no certainty about what the future holds unless widespread adoption impacts the legal hurdles that hamper cryptocurrency trading.

Cryptocurrency faces implementation hurdles beyond lack of regulation and dormant commitments. The technology is nascent and immature in a system where other options are widely scalable and accepted.

One might think that a technology that has been around for over a decade can be new and emerging. The reason is that little has been done to expand it.

The. interoperability

Interoperability, or the ability of computer system software to share and use information, is a challenge for blockchain. The technology has been split to allow multiple applications in different industrial fields, separate from cryptocurrency.

The technology must be interoperable for the internet destined for blockchain and cryptocurrency exchanges. Until then, as long as people continue to use illegal and fake mining means, the technology is a threat to the economic system that opens its doors to accepting virtual currencies.

(Video) Crypto: The World’s Greatest Scam.

B. Ease of use

This point cannot be overstated how difficult it is to buy and sell cryptocurrencies. It's 2020 and it's still as tough as the day Bitcoin was introduced. Merely participating in the crypto world requires a stressful validation that people generally find uncomfortable.

Security procedures are so complex that they have become barriers to the adoption of cryptography as an exchange method. Most students are lookingPersonal statement helps ukwho have a strong interest in the cryptocurrency markets but cannot create an attractive profile.

Creating user-friendly processes to securely buy, sell, store and use cryptocurrencies without being prompted remains a major challenge for the industry.

w. scalability

Currency exchange, generally acceptable in each country, and even bank transactions in different currencies have been made scalable and adaptable to different rates. The cryptocurrency will take years of effort before it finally achieves the scalability that the dollar, yen, pound or rupee has achieved.

While interoperability could be a big step in this direction, this in itself presents a challenge that needs to be mitigated first as the system is very slow and many mainstream platforms for smart contract applications are still under development. Processes face numerous delays and would require many scalable solutions to combat this switching problem.

2020 Global Challenges for Cryptocurrencies (2)

D. Data Rights

At this point, data has reached a level where it becomes a digital asset. The digital mafia sees data as the real deal and a key to all that is penetrable as it can have immense value to individuals and organizations. For this reason, data and privacy rights are and will remain one of the biggest loss loops in cryptocurrencies.

The solution here is not just government privacy and data protection for cryptocurrency traders. A dedicated system is needed in which such identities can collect and control their own data. And where there is still a long way to go before an efficient structure is reached, many initiatives have been and are being taken.

It is. Security

The blockchain may be immature, but it is so advanced that it is more secure than a traditional computer system.

However, many financial breaches, data leaks and huge losses due to system vulnerabilities have made it difficult for people to be happy with their transactions. at a time$250 million was lost in a single transaction through QuadrigaCXExchange due to its deadly centralized business model.

(Video) Cryptocurrency And The Current Challenges Facing The Market

Not only is this message not secure enough, it is also circulating around the world. People have lost faith in cryptocurrency over time.

In 2013, a crypto enthusiast opened a luxury car dealership in Costa Mesa, CaliforniaBought a Tesla Model S and paid for it in Bitcoin. Almost 92 bitcoins worth over $100,000 at the time, the deal was sealed and legally designed. Looking at this transaction and comparing it to the current real-time value of the cryptocurrency, the setback and skepticism surrounding bitcoin didn't hurt the rising estimate too much.

However, one cannot get over the real-time losses that Bitcoin transactions have incurred over the years. Spending bitcoin is still a bigger deal than hoarding it.

2020 Global Challenges for Cryptocurrencies (3)

The. Countries Banning Bitcoin

Countries like Vietnam, Bangladesh, Bolivia, and Ecuador have banned crypto transactions. The state bank banned it and declared cryptocurrency an illegal form of payment with a heavy fine for violators. And even where it's legal, there are numerous logistical problems.

In the US, too, the Securities and Exchange Commission is discussing whether to bring forward new regulations for the cryptocurrency market. When major countries with relevant economic forums take a stance against bitcoin, it becomes increasingly difficult for the crypto dude to gain mass adoption as people continue to try their hand illegally.

B. Konvertierungsprobleme

Conversion remains a major hurdle for bitcoin providers. Since bitcoin is not a fiat currency and is limited only to monetary value when converting to a cash equivalent, few providers choose to convert to other types of cryptocurrencies. They are more willing to look for a payment method that delivers in USD or some other local currency. So that every exchange of goods and products takes place with consumption fees.

This implementation system is difficult, even if bigger brands are willing to make it possible. It doesn't matter whether a company sells or sells carsacademic writing services, there is a lack of adequate regulations to facilitate this type of exchange.

w. people who lose money

Although Bitcoin's regulatory protocol was unaffected and not a single Bitcoin disappeared or was lost, people lost a lot of money. The crash and cases of transaction errors are the main reason why the cryptocurrency was stopped in the first place without notice.

There is a serious need to regulate and change trading and mining protocols in Bitcoin and other cryptocurrencies. Only then can I expect the general public to safely indulge in bitcoin mining and trading without feeling like it's illegal or being played outright on their part.

(Video) Ray Dalio: 3 BIG Problems With Bitcoin

D. Price Volatility

Price volatility is also weighing on the potential balance of Bitcoin and cryptocurrencies in general. While bitcoin has gained a significant community over the years, there have been arguments among community members about which path it should take.

The compact user base has made the coin increasingly volatile. The stability expected from a system of centralized regulatory authority will increase as people begin to accept it. Doubts about the use of Bitcoin and resistance from major countries to integrate and legalize the system will continue to make prices worse.

In short, over the years of cryptocurrency trading and mining, the results of inaction by major industrial giants, corporations, and government agencies have never changed as much as they do now. The year 2020 will shape the cryptocurrency industry for better or worse.

Crypto networks like Bitcoin, companies like Facebook, and nations like China that adopt digital currencies by the end of this year will take a step toward surpassing the dollar as a record-breaking currency. This, in turn, will push the US Federal Reserve to get ahead of the digital counterparty.

There is no denying that the stakes are high and like everything else, the future for cryptocurrencies is unpredictable.


2020 Global Challenges for Cryptocurrencies (4)

Claudia Jeffrey is currently working as a Junior Financial Consultant at Crowd Writer, a great platformJob Aid in the UK. She is a self-proclaimed crypto influencer. She has gained considerable experience and knowledge in this regard over the years and is happy to share this with an interested audience.


What are the challenges in cryptocurrency? ›

There are scalability difficulties with cryptocurrencies, which means they may not be able to process enormous quantities of transactions at once. This might make them difficult to utilize for routine transactions, since these transactions may take too long to process and complete.

What are the biggest problems in crypto? ›

What are the biggest problems that cryptocurrency traders see in currently available exchanges?
CharacteristicShare of respondents
Lack of crypto pairs22%
Inconvenient user interface21%
High withdrawal fees18%
No issues9%
4 more rows
Jan 11, 2023

What is a good research question about cryptocurrency? ›

❓ Cryptocurrency Research Questions. How Can Cryptocurrency Change the Future of the Economy? How Are GPUs Used in Cryptocurrency Mining? What Are the Advantages of Cryptocurrency?

What is cryptocurrency how does it affect global? ›

Cryptocurrency is far more than just a financial innovation — it's a social, cultural and technological form of progress. Through its accessible character, cryptocurrencies have the potential to spur the economy immensely. Cryptocurrencies are digital assets managed with cryptographic algorithms.

What is one of the main challenges of establishing a fair value of cryptocurrency? ›

Valuation of cryptocurrency is challenging due to a lack of comparable trades, differences in pricing between buy and sell orders, disparate methods in reporting exchange currency pricing, and the difference in pricing of a particular cryptocurrency depending on the exchange used for the trade.

Why do most cryptocurrencies fail? ›

Many cryptos from humble beginnings will fail, simply because they lack the resources to compete with financial giants. In order for a cryptocurrency to be successful, in fact, two conditions are necessary: ​​there must be a great demand for these currencies for transactional reasons and users must trust them.

How can cryptocurrency change the future of the economy? ›

A majority of macroeconomists interviewed agree that cryptocurrencies and stablecoins should both have a regulated role in economies. These digital currencies could be potential drivers of financial stability, equity, innovation, and market incentives for environmental sustainability.

What are the most asked questions around or about crypto? ›

Your questions about cryptocurrency answered
  • What is cryptocurrency in general? ...
  • What other types of cryptocurrency are out there? ...
  • What can you buy with cryptocurrency, and how? ...
  • How safe is cryptocurrency? ...
  • What regulation and requirements govern bitcoin? ...
  • What do the big banks and mainstream institutions think of bitcoin?
Mar 4, 2022

Is cryptocurrency a threat to global economy? ›

Cryptocurrencies are much helpful for developing economies since they can increase their economic and social status. Entrepreneurs get more control, and thus, access to capital becomes much easier due to the advent of blockchain technologies. Everything contributes to the rise in economic activities.

What is the role of cryptocurrency in global market? ›

Crypto will ensure that each and every person in every economy has access to and can benefit from basic financial services. Trust: In the crypto economy, there are no custodians controlling and manipulating the currency or market. There are no middlemen creaming massive profits off every transaction.

What are the negative impacts of cryptocurrency in the society? ›

Cryptocurrencies are subject to high fluctuations in value. A decline in value or a complete loss are possible at any time. The loss of access to data and passwords can also lead to a complete loss.

What factors are responsible for the decline of crypto currency? ›

If there is a limited supply of cryptos, the currency's price will increase. Meanwhile, if more cryptos are supplied, the price will decrease. Moreover, some cryptocurrency projects 'burn' current coins by guiding them to an irretrievable address inside the blockchain.

How can crypto empower the disadvantaged and solve global problems? ›

Crypto currencies could provide a significant benefit by overcoming the lack of social trust and by increasing the access to financial services (Nakamoto, 2008) as they can be considered as a medium to support the growth process in developing countries by increasing financial inclusion, providing a better traceability ...

What economic problems is the cryptocurrency trying to solve? ›

What Problems Could Cryptocurrency Solve?
  • Inflation. Simply put, inflation is when your cash is worth less than it used to be over time. ...
  • Digital voting. ...
  • Equality in money management. ...
  • Stop future global financial crises. ...
  • Stamp out embezzling and improve trust in charitable donations.
Jul 11, 2019

How does cryptocurrency impact society? ›

Bitcoin has impacted society by creating an alternative to the traditional financial system. It has made paying for goods or services without fiat money possible. You only need Bitcoin, and you are ready to go. Moreover, you don't have to worry about intermediaries.

What are the pros and cons of using crypto? ›

The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure. The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and use in criminal activities.

What major challenges do Blockchains have today? ›

Blockchain challenges and solutions in 2022
  • Lack of adoption. Blockchains function more effectively and efficiently when used across a wide network of users. ...
  • The rising cost of blockchain implementation. ...
  • Scalability. ...
  • Security and privacy challenges. ...
  • Regulations. ...
  • Criminal activities. ...
  • Energy consumption. ...
  • 51% attacks.
May 30, 2022

What are limitations and challenges in blockchain? ›

A blockchain network is vulnerable to control by an entity that owns 50% or more of the network's nodes. Another disadvantage is that it cannot get deleted once recorded information. Everyone gets entitled to their personal space.

What is the 51% problem in blockchain? ›

A 51% attack is an attack on a blockchain by a group of miners who control more than 50% of the network's mining hash rate. Attackers with majority network control can interrupt the recording of new blocks by preventing other miners from completing blocks.

Why are cryptocurrencies high risk? ›

Cryptocurrencies aren't backed by a government or central bank. Unlike most traditional currencies, such as the U.S. dollar, the value of a cryptocurrency is not tied to promises by a government or a central bank. If you store your cryptocurrency online, you don't have the same protections as a bank account.

Why is crypto falling rapidly? ›

It is uncertainty over the future of bitcoin which has caused prices to crash. In June 2022, it plummeted below $18,000. It was still below $20,000 by November 2022, just a year after its record high of $69,000.

What is one reason cryptocurrency loses its value? ›

Bitcoin's price fluctuates because it is influenced by supply and demand, investor and user sentiments, government regulations, and media hype. All of these factors work together to create price volatility.

How will cryptocurrency change the world? ›

It Can Encourage Scientific Advancements

Crypto and blockchain can help change various scientific roadblocks we face by giving everyone access to real-time data and stopping foundations, institutions, and corporations from keeping important information.

What is the future of cryptocurrency in the world? ›

After a big down year in 2022, the crypto industry will regroup in 2023, with those still standing ready for a big push heading into 2024. In other words, next year is a year of continued survival, with a look toward a return to huge gains in the years ahead.

What is the impact of cryptocurrency on economy? ›

The velocity increases as economic growth increases. The impact of cryptocurrency on the Indian economy will be huge in 2023 and in the following years due to digital money flow. The faster the transaction of the money, the better for India's ambition of becoming a superpower with a significant GDP.

What are the biggest hack in crypto? ›

The biggest crypto hacks of 2022
  • Ronin Network.
  • Wormhole Bridge.
  • Nomad Bridge.
  • Beanstalk Farms.
  • Wintermute.
Nov 28, 2022

Which crypto has the most potential and why? ›

The Best Cryptos With the Most Potential in 2023
  • Love Hate Inu (LHINU) - Best Vote-to-Earn Meme Crypto With the Most Potential in 2023.
  • Fight Out (FGHT) - Emerging Crypto With Potential Offering 67% Token Bonus.
  • C+Charge (CCHG) - Sustainable Cryptocurrency With High Growth Potential During Ongoing Presale.

Which crypto is most important? ›

Here Bitcoin (BTC), the first cryptocurrency and still the most valuable with a market cap north of $450 billion, takes the cake.

What are 3 benefits of cryptocurrency? ›

Advantages of Cryptocurrency:
  • Protection from inflation: Inflation has caused many currencies to urge their value to decline with time. ...
  • Self-governed and managed: ...
  • Decentralized: ...
  • Cost-effective mode of transaction: ...
  • Currency exchanges finish smoothly: ...
  • Secure and private: ...
  • Easy transfer of funds:

Who benefits from cryptocurrency? ›

A More Inclusive Financial System

Some of the benefits of cryptocurrency extend to people who don't have access to, or perhaps don't trust, the traditional financial system. Due to its decentralized and permission-less nature, one of the benefits of cryptocurrency is that anyone can participate outside of that system.

What is the main purpose of cryptocurrency? ›

A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.

What are the risks in the crypto market? ›

Crypto is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Investors in crypto could lose the entire value of their investment.

Is cryptocurrency threat to banks around the world? ›

With its decentralized system and peer-to-peer technology, Bitcoin has the potential to dismantle a banking system in which a central authority is responsible for decisions that affect the economic fortunes of entire countries.

What impact cryptocurrency could have on international trade? ›

Simplify cross-border transactions:

Many of the barriers and limitations of international business are removed with crypto, and receiving payments in other currencies is simplified. Cryptocurrencies make it possible to trade internationally without having to part with a chunk of your profit or overpricing your product.

What is the global value of cryptocurrency? ›

The global cryptocurrency market cap today is $1.16 Trillion, a 0.92% change in the last 24 hours and -44.53% change one year ago. As of today, the market cap of Bitcoin (BTC) is at $472 Billion, representing a Bitcoin dominance of 40.86%.

Which country benefited from cryptocurrency? ›

El Salvador. The first entry among countries using cryptocurrency would be El Salvador. It is the first country in the world which adopt Bitcoin as a legal tender. The Central American nation set a favorable precedent for all businesses in the country to accept Bitcoin payments.

Why everything is going down in crypto? ›

What can cause a crypto crash? Crypto prices can be dramatically affected by major events, such as exchanges or coins crashing. They can also sink with higher interest rates, rising inflation and other macroeconomic factors that can affect how confident people feel investing their money in risky alternative assets.

What are pros and cons of crypto? ›

The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure. The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and use in criminal activities.

What is the future of cryptocurrency? ›

ReGrouping Happens

After a big down year in 2022, the crypto industry will regroup in 2023, with those still standing ready for a big push heading into 2024. In other words, next year is a year of continued survival, with a look toward a return to huge gains in the years ahead.

Will crypto market rise again? ›

After a prolonged bear market in 2020, analysts and investors are optimistic that the crypto markets will rally in 2023. This positive outlook has been bolstered by the fact that the industry has managed to weather the storm and show signs of recovery even in difficult times.

Is crypto going to recover? ›

After a turbulent year in the cryptocurrency space, it looks like the prices of some of the bigger coins are finally showing signs of recovery in 2023. Experts estimate that about $1.4 trillion was erased from the crypto space in 2022.

What are the risks of investing in cryptocurrency? ›

They may or may not be backed by physical assets. Crypto is a high-risk investment. The value of crypto is very volatile, often fluctuating by huge amounts within a short period. More than with any other investment, you must be prepared to lose what you invest.

What is the US doing to regulate cryptocurrency? ›

The Federal Reserve decided that cryptocurrency-related assets must be disclosed separately by banks. New cryptocurrency asset activities require notifying the Federal Reserve. Banks are urged to consider the risks of crypto to their asset portfolios.


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