There are plenty of different opinions on cryptocurrencies. It is difficult to find the true metric to determine their success. According to the Bank of International Settlements (BIS), there isn’t any real growth. In fact, BIS claims the performance of cryptocurrencies worsens as the currencies grow more popular.
BIS Has Strong Opinions
It is a well-known fact how banks and financial institutions dislike Bitcoin. This trend became apparent many years ago and still remains in place today. Bar a few exceptions, it seems unlikely any overarching institutions will give cryptocurrencies the benefit of the doubt. For the BIS, that is quite visible as of right now.
In a recent statement, BIS confirmed they are keeping tabs on the performance of cryptocurrencies. More specifically, they have been tracking how currency growth correlates to performance. The current result is not all that great, according to BIS. In fact, its latest annual report claims how the lack of blockchain scaling hinders growth in this industry.
Furthermore, the institution also questions the finality of payments. In its report, BIS claims ‘a cryptocurrency can simply stop functioning.’ A valid comment, especially where the smaller-cap currencies and tokens are concerned. When it comes to Bitcoin, Ethereum, and others, such developments remain highly unlikely.
Improving the Current Infrastructure
BIS is also not a big fan of the mining aspect. The costly energy use associated with this process creates an ‘environmental disaster.’ Such claims have been made in the past when Bitcoin was far less successful. Even so, it seems these drawbacks are not sufficient to hinder the growth of cryptocurrencies.
At the same time, the report makes no mention of Bitcoin mining using renewable energy. Various companies are flocking to regions such as Iceland, Canada, and others. They all have access to renewable energy, which further reduces the actual footprint of Bitcoin mining. Small steps are being taken to improve upon this situation.
On the performance front, big changes are coming as well. Ethereum will introduce Casper and sharding soon, potentially in the same upgrade. Bitcoin’s Lightning Network continues to mature as more time progresses. All of these developments will have a positive impact on overall cryptocurrency performance. Rendering the comments by BIS invalid altogether, however, will still require a lot of work.
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