November 11, 2019

What are your biggest frustrations with cryptocurrency?

I've identified some of my own frustrations with cryptocurrency and would love your help to see if I've missed any.

On crypto projects and Bitcoin alternatives:

  • I find it difficult to find a crypto-project that does not look like a make-money-fast scheme
  • The use of a blockchain is not needed in most projects I've found, a database would suffice
  • 99% of the bitcoin alternatives look like copy-cats with small tweaks

On crypto wallets:

  • I need to have an individual wallet for every coin
  • If I use an exchange I don't own my private keys
  • If I use a desktop wallet I can't buy crypto with my credit card
  • Buying crypto with my credit card on an exchange is a long process (ID upload and validation )
  • No customer support

Did I miss something? What are your biggest frustrations with cryptocurrency?

Thanks

  1. 4

    If you look at cryptocurrencies through the eyes of an ordinary consumer you immediately encounter a "UX" problem. There are no easy ways to register and fund your wallet.

    There is no simple and clear infrastructure for using cryptocurrency in everyday purchases 🤷‍♂️ (Of course, this is a subjective opinion)

    1. 1

      Thanks Max

  2. 2

    Most of your points are spot-on, however, many multi-coin wallets exist like (coinomi)

    1. 1

      Thanks Kamal, I'll look into Coinomi

  3. 1

    I'm using ledger's hardware wallet to own my keys and secure them on a cold hardware wallet, i suggest you do so, this will remove a lot of security struggles.

    Id verification is a pain in any payment-related service, even with fiat based services, it's not a crypto-related issue, try to register to a forex exchange and you'll pass through a lot of id verifications as well ..

    The good (and bad part) is the trading volatility, in cryptos you can easily see 10-30% volatilities in value through one day, this is impossible to get in fiat markets, for traders, this is a value generator, and can be a tomb to others :)

    1. 1

      Thanks El Tunisiano!

  4. 1

    My biggest pains:

    • A bank-like experience (customer service, security, the ability to cancel or amend payments, insurance, protection)

    • Validating identity is incredibly painful when signing up to a new service

    • It's too expensive to buy, sell and transfer

    • The entire industry has a terrible reputation and is filled with get-rich-quick type people that discredits everything

    • The ability to block out the noise of bullshit projects like BSV and BCH. Amongst all the crap, there are some legitimate projects aiming to build very exciting and useful solutions. When you look at the top 20 in CMC, maybe 3 or 4 of them are legitimate.

    1. 1

      Thanks Dean!

  5. 1

    The one that pisses me off the most, but really. Swapping. When a project releases tokens or a coin, after 3 months it becomes clear, "hey we need our own chain" or "hmm on this chain our revolutionary idea does not work. we make our own chain!" ... after a year "oh, this chain does not work" sigh

    the best was so far: "we need a rebranding, for the swap there will be information soon"

    In 99% of the cases this is extremely time consuming ... and you have to notice it.

    1. 1

      Thank you Hen!

  6. 1

    Taxation!

    1. 1

      Thank you Lucas!

  7. 1

    Other 2 issues I hit:

    • If I had a magic wand, I would want a way to burn dollars (on camera!) and be rewarded instead with USDT or similar. I know that technically that's probably impossibly, but God that would ease the on-ramp a lot!

    • A big issue, is better/easier UX with key management. I'm thinking, if I lose my keys, I want a way to have my family/friends help me get them back. This is technically possible, and I think implemented in some places, but probably not in a dumb-proof / easy / sexy way!

    1. 1

      i'm using ledger's hardware wallet, very easy and secure way to manage your wallet and own your keys.

      Still, if you loose your keys there's no way to get back in, there's no customer support, no insurance, you are running your own bank !

    2. 1

      Thanks Kamal,

      That's really helpful.