There’s bound to be furor when an asset market clocks 2 trillion in less than a decade. Let’s not wonder anymore and straightway come to the point that we are talking about the crypto market. A magical number of 2 trillion would make anyone say there’s a lot of dedicated users. However, in reality, there are just 68 million users out of the 5 billion banked population. Those numbers are peanuts when you connect with the use-cases of crypto and the revolution they have brought in the FinTech space. So, the question is what is stopping crypto from gaining mainstream adoption? Let’s deep dive to know a few reasons why only the OGs are confident about crypto.
Top Hurdles Cryptos Have To Overcome for Mainstream Adoption
So, it is your payday and you wish to get paid in Bitcoin. Suddenly Elon Musk gets concerned about the environment and tweets Bitcoin is bad for nature. Now the $5,000 in BTC you received as salary turned 50%. Would you like something similar to happen to you? I bet no one would want it. That’s why people treat crypto as a store of value rather than a value of exchange. As a result, people prefer stable coins more than they prefer cryptos with high volatility. However, keeping stable coins will be as good as keeping dollars. On top of this, dollars are easily acceptable anywhere in the world. Could you say the same for crypto? I hope you have got the answer to why people do not treat crypto as real money and crypto fails to get mainstream adoption.
Lack of Regulations
The news that someone made $1 billion by investing a few thousand dollars could be tempting. However, there’s another side of the story where a token tanked to the roof only to go down the grave in a few minutes. I hope the Squid Game event would haunt any investor. That’s the reason why the ICO event of 2017 stays as a lesson for everyone and investors want protection against rug-pulls and pump and dump antics. Only regulations could establish that. However, regulating cryptocurrencies will defeat the purpose of decentralization. Such a dilemma has kept the technology accessible to a handful of the masses. Though there’s no entry barrier, people aren’t confident in the absence of a body that could safeguard their investment.
Lack of Education
There’s a perception in the air, crypto is complex. Well, I would feel the same way when words like liquidity pools, flash loans, and atomic swaps come out of nowhere. Thus making people stick to the traditional ways of finance. Instead of making crypto end up as rocket science, stress must fall upon simplifying the tech. People are afraid of private and public key conundrums, rather, debit cards make sense to them. If crypto companies make the understanding process simpler, it could drive adoption faster. The only way to do that is through a replica of the centralized finance model in the cryptoverse. If people get convinced about security, stability, and ease of usage, they would be eager to adopt the tech.
Mass adoption could turn revolutionary if the crypto sector addresses these challenges. At the moment, technology is new and evolving. When the Internet came in the ’90s, people had apprehensions. However, as time passed, the Internet drove opportunities and today the world economy relies on it. The same would be the case with crypto as concepts get clearer and people start to embrace the tech. The question is that it would be possible only when the companies around crypto simplify the tech for faster onboarding and quicker outcomes.
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