Lack of trust will doom crytpocurrency

Loss of crypto coins through hacks, fake trading and volatility destroy trust in cryptocurrency, but those aren't its only problems.

The promise of a cheap, anonymous, distributed, fiat cryptocurrency that is detached from any country’s sovereignty is a pipe dream. It will never happen. My opinion hasn’t changed since bitcoin first hit the market in 2009. People will play with it, some businesses will accept it, fortunes will be made and lost, but it isn’t a threat to any nation’s fiat currency on that level.

People lack trust in even the most established cryptocurrencies. Here’s why.

Cryptocurrencies are hacked too much

Cryptocurrencies are still being hacked to death. Blockchain in theory is nearly unhackable. In practice, not so much. Cryptocurrencies are built on software, and software always, always has bugs. Hackers have found some of those bugs and stolen millions of dollars.

That said, the underlying blockchain implementation is the least of traders’ worries. Hundreds of millions of dollars are still being stolen from exchanges and customer’s cryptocurrency wallets. Computers and digital devices are very hackable. That’s not going to change anytime soon.

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