Jasz
VIP Contributor
Cryptocurrencies are still in their infancy, but it's already apparent that there are certain features that will determine whether a given currency has staying power. Here are the features we believe will make or break a cryptocurrency in the future:
1. Adoption Rate: The more people actually use this currency, the more value it will have. This is much like how a restaurant can't succeed if nobody eats there.
2. Security: lf security isn't a priority, then hackers and other malicious agents can steal from exchanges and other methods of using the currency and render it worthless.
3. Anonymity: If anonymity is not built into the currency's protocol, many will not want to use it for fear of being tracked by big-data collection agencies or other actors who wish to exploit data mined from their users' activity.
4. Centralisation: The more centralized it is, the more power one person or organization has over the currency, and that can lead to problems down the road. Also, if there are many users in a decentralized network, then it will likely have better security than a centralized network. This is because each user has equal power over how their transactions are processed and they don't need to rely on one company or person to do it for them.
We also have: Durability, Scarcity and Fungibility.
1. Adoption Rate: The more people actually use this currency, the more value it will have. This is much like how a restaurant can't succeed if nobody eats there.
2. Security: lf security isn't a priority, then hackers and other malicious agents can steal from exchanges and other methods of using the currency and render it worthless.
3. Anonymity: If anonymity is not built into the currency's protocol, many will not want to use it for fear of being tracked by big-data collection agencies or other actors who wish to exploit data mined from their users' activity.
4. Centralisation: The more centralized it is, the more power one person or organization has over the currency, and that can lead to problems down the road. Also, if there are many users in a decentralized network, then it will likely have better security than a centralized network. This is because each user has equal power over how their transactions are processed and they don't need to rely on one company or person to do it for them.
We also have: Durability, Scarcity and Fungibility.
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