Ted Bauman: Why Bitcoin Will Never Work!

What is wrong with Bitcoin? That is the problem that readers of The Bauman Letter were presented with. Ted Bauman, a well known financial expert and analyst, explained in full detail what exactly is wrong with Bitcoin. There is a big problem with Bitcoin that will definitely prevent it from becoming the global currency that so many so called experts out there claim it will become. There is no chance of Bitcoin growing any significant amount if this problem is not resolved. Until then, it will remain a currency that is far from being used on a global scale and is limited to select few online merchants. Follow Ted Bauman at stocktwits.com

Let us imagine the following story. It is a bunch of years down the road, and you are on a business trip. You have parked your car in the garage at an airport. After being away for a few days on a tiring business trip, you finally get back and all you want to do is head home and enjoy yourself. You go to the garage and you want to pay the fee that will let you take your car out of the garage. However, you need to pay with Bitcoin, perhaps because the machine does not accept anything else (remember, this is just a theoretical situation that may take place many years down the road) or because you forgot your wallet or your credit cards and you do not have any cash. You pay Bitcoin by using the machine, which connects to your account. You wait for the machine to let out your car. A minute goes by, and then another minute goes by. Five minutes pass. Then ten. Finally, an hour or two later, you are let out. Read more at ezinearticles.com about Ted Bauman

This is not a scenario that may never happen. If everyone truly switches to Bitcoin, then this may be a huge problem. The truth is that Bitcoin takes a long time to process transactions. It can only handle a certain amount of transactions per second. Already it is taking many minutes and sometimes up to an hour or more for a transaction to go through. If everyone starts using Bitcoin, the technology behind it will simply not be enough to sustain all the transactions going on. It will simply not work.

Ted Bauman is the editor of the Bauman Letter at Banyan Hill Publishing. He offers expert advice on investments. More info can be found at https://tedbaumanguru.com/