Why cryptocurrency needs time to become a common thing?
The blockchain technology became one of the most discussed topics of 2017. Someone says that it is a temporary phenomenon, while others believe that the cryptocurrency will completely change our world.
I relate myself to the second category of people and this change seems inevitable. I see it as positive development. The question is when will this happen? In addition to the problems discussed in the legal field and the use of virtual currency, I am worried about another equally important issue — the lack of “service” in the world of cryptocurrency.
Buying cryptocurrency is not that simple
I faced the first difficulties when I bought cryptocurrencies in spring 2017. To buy any currency first you need to purchase Bitcoin or Ethereum.
In order to get Bitcoin and Ethereum you have to:
1. Register your wallet (each currency requires its own wallet).
2. Put real money (dollars, euros, rubles) on any exchanger, pay a commission.
3. Exchange money to Bitcoin or Ethereum, pay a commission.
4. Transfer Bitcoin or Ethereum to the exchange where your cryptocurrency is sold, pay a commission.
5. Exchange Bitcoin or Ethereum for the currency of interest and pay a commission.
There is a possibility to avoid several commission fees, but the rate will be less profitable.
You have to go through a huge number of obstacles in order to just buy currencies. If the amount is small, you can lose almost everything when paying a commission, otherwise — about 15–20%. In addition, UX, UI and service design is hopelessly outdated, it seems that the developers live in 2000.
Where to store your currency
After going through an incredibly difficult first stage, you want to relax, but this is only the beginning. It is necessary to understand where the cryptocurrency is stored. Establishing an official wallet is a very difficult task. To store Bitcoin you need 80 GB, for Ethereum — the wallet’s size is smaller, but it needs to be constantly synchronized, and if you do not have a powerful computer — you will never be synchronized, and most currencies do not have their own wallets at all.
We have to use such services as blockchain.info, myetherwallet and others, but they, unfortunately, do not guarantee security and severely limit the number of currencies.
There are multicurrency wallets, which only partially solve the problem with limitation (not all currencies are supported or there is no possibility of exchange), but the question of security remains open.
Where and how much money do you have?
The next problem that you will inevitably come across when buying different currencies on stock exchanges and using different wallets for storage is financial accounting.
If you have a few currencies (up to 5), you can use a notepad or spreadsheet. Otherwise, it is extremely inconvenient and there will be a need to find a service for financial accounting.
The services presented today are far from perfect:
Cointracking is the most functional system, but too complicated interface: many different options, half of which even advanced traders and funds do not need.
CryptoCompare is the most convenient of existing services. They lack mobile application and simple integration with exchanges and wallets, so as not to enter all the data manually.
Blockfolio is the only adequate (although there are bugs and lags) mobile application. A convenient system for personal use, but automation and computer versions are missing: it is inconvenient to enter many transactions and currencies.
The absence of a user-friendly service, meeting all the needs, led us to make our own system, in which simplicity and convenience would be combined with good analytics and automation.
We, as developers from the real sector, are used to the fact that everything should be done for people: nice interface, easy use and, most importantly, the service that helps solve existing problems and does not create new ones. And we are lazy — we do not like manual work, so we try to automate everything. Now our service has beta-version.
Lack of “service” and other troubles
The purchase, sale and cryptocurrencies accounting are only few problems in the cryptocurrency world. In fact, there are many more:
— advertising services: when ordering advertising targeted at an audience using cryptocurrency you will encounter so many problems that we need to devote a separate article to them;
— lack of quality marketplace;
— absence of professionals in the blockchain field;
— extremely inconvenient platforms for communication and information exchange (the main one is a bitcointalk forum with a complicated structure, an outdated design, UX and UI);
— banks and bank cards.
All this is united by the lack of “service” in the broadest sense of the word. It seems to me that this is a big problem, because it entails the following:
— no “service” — > high entry threshold to the cryptocurrency world;
— high entry threshold — > a small number of users (it is extremely small, compared to classical currencies — less than 1%);
— low prevalence — > insufficient coverage of the international market;
— And as a result — the non-recognition and inability to use cryptocurrency in the real sector.
What’s next
While working with the cryptocurrency is not as simple and comfortable as with credit cards from the real sector, it will be impossible to rent a car or buy bread for the cryptocurrency.
I hope that 2018 will become a year of services that facilitate the work with cryptocurrency, and complex abstract concepts (Internet 3.0, blocking the world, the most anonymous currency with the best consensus, etc.) will recede into the background.
As Gandhi said: If you want to change the world, start with yourself. And we started by establishing FinTab.
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