Blockchain Technology Facts That Remains Hidden

Many people that everything about cryptocurrencies and blockchain technology is good. However, this may not be always true and there are certainly something that are not true and could also be considered as something that is downright false and brutally wrong. There are many such points. However, in this article we will be talking about 10 such truths that perhaps may not be known to most of us. We are sure it will add a new perspective to understanding about Blockchain technology and help the information seekers and readers to know about a few things that perhaps were never ever shared in the public space.

The Failure Ratio Is Astounding

When we look at 2017 there were 902 cryptocurrency ICO that were formed. Out of these 142 failed before they even could raise any funds. While 276 did raise some funds they could not continue their business and had to shut shop after fundraising.

Semi-Failed Category

There were around 113 ICS that have been classified under the semi-failed category. This is perhaps because the startups stopping communicating on social media. There were others who saw a massive decline in the community where the chances of success were almost non-existent. When these things are taken together and measured in absolute numbers, the results are quite depressing. The failure rate would be around 59 percent and the total failure rate could be as high as 46 percent. All this has happened in spite of the ICOs being able to raise around $104 million. This goes to prove that the failure rates for cryptocurrency ICOs are very high.

The Returns Are Also Poor

It would also be pertinent to mention here that only around 50 out of a total of 902 ICOs made 5x return or more as far as 2017 was concerned. This is further corroborated by the fact that only 800 out of 1600 tokens or coins were declared as dead coins. It is also possible that another 70% of new ICOs during 2017 may also have met the same fate. While all this is happening, we will continue to see topics, discussions and other information that is aimed at misleading the investors and trying to sell of junk as great coin.

Scalability Is A Problem

Many new coins hat are being pushed into the market talk a lot about scalability and decentralization actual fail the test. They are basically useless when it comes to actual work on the ground. There are many such names including Ripple, NEO, EOS, Dash, Stellar and Tron amongst others. They are extremely centralized.

Further there is rampant crypto theft that is happening. Around $673 million were stolen in 2018 because of crypto backs. $9 Mio was stolen on an average daily. This happens because stealing crypto is easier when compared to bank funds. The security is evolving but still not very good to beat the hackers.

Buying During The Bull Run

Newbies who are getting into cryptocurrencies often buy during the height of a bull run. Hence they buy it at very high rates. The market in many cases crashes leading to wipeout of almost 70% of all money. Newbies never learn the lessons that the cryptos have to be bought when the market is down. Hence, buying high and selling low is more of a rule than an exception. Many new investors lose heavily and their loss is the gain for experienced players including some well entrenched sharks.

Be Wary Of The Sharks

The market is totally under the control of whales. They not only own 40% of all bitcoins equaling around $70B but also can manipulate and control prices. It is not too difficult for them to increase the market cap of Bitcoin to $1 T from $100 B and it would perhaps take them a session to make this possible. However, being sharks they are they wait for the right market cycles and then pump those big money and swallow small and medium players.

Flaws Cannot Easily Be Detected

There is no way by which it is possible to detect consensus algorithms that are flawed. The same is the case with flaws concerning centralization issues. There are many examples to it including the likes of Stellar, Tron, Dash, NEO, Ripple and EOS. Those without the best of computer science knowledge and business will not be able to detect flawed ICOs and prevent scamming of investors.