A cryptocurrency looking to be “the digital cash” and replace currencies and cryptos of the world, needs the following attributes:
I don’t trust you, you don’t trust me. Transparency (at least between parties) is necessary to conduct business without a “trusted” intermediary (like a bank that charges lots of fees).
Cryptocurrencies currently don’t have regulatory bodies. If you get robbed, Batman (or the police) isn’t coming to save you.
2. Decentralized and censorship-resistant
If governments or illicit organizations can shut off or alter the supply of money, we are right back to fiat.
This creates the question of how to decentralize/secure the network. Currently Proof of Work and Proof of Stake are the common protocols — both with strengths and weaknesses.
Solving this problem may prove the most important key to cryptocurrency adoption.
Transparency isn’t always a good thing. Why should the barista at Starbucks know your net worth and all the organizations/individuals you interact with? You are just asking to get robbed or hacked.
For privacy coins to work without a complete governmental collapse, there will need to be certain auditable information. But beyond the basics, sharing economic status with the world seems a recipe for disaster.
For mass adoption, we need stable cryptocurrency. You cannot buy things, pay salaries or expect to function in a society of rapidly changing rates…
There may need to be DAO-like governance structure needed to maintain stable prices. This however has not been worked out adequately to date and needs a lot of work.
Eulogy made by Matt Ward