The Biggest Issue Facing Further Crypto Adoption

By Cje95 | Chronic Illness and Crypto | 16 May 2022


Last week was a terrible week for the crypto market as a whole. Not only were assets down across the board but one of the few coins and blockchains that had bucked the downtrend of this year completely imploded. Terra Luna's implosion was a huge blow to further crypto adoption because of the crazy fallout. 

 

Terra's fallout has been compared to a Lehman Brothers moment. For those of you that do not know Lehman Brothers was one of the largest investment banks in the world and the fourth largest in the U.S., Its collapse in 2008 was one of the key dominoes that resulted in the financial crisis and recession. While a lot of us think about UST and LUNA when we think about the Terra Luna collapse it took with it a whole blockchain that developers had been creating and deploying dApps on. Overnight some of the developers went from chugging along creating a product to having to pick up the piecing and figure out what to do. Luckily for developers, several blockchains like Polygon have created ways for developers to move to their chain and thus salvage their projects.

 

This was not the case though for a key group of people though. Investors and in particular the small investor who is just getting started have been completely wrecked by this collapse. These individuals have no chance of recourse and have instead lost everything that they had put into the blockchain. 

 

Whales and others who have tons of money at their disposal, while hurt, typically are not completely destroyed by things like this. They tend to be the types who would diversify and thus mitigate the risk. New investors or ones without large amounts of capital are not this lucky and instead take a huge punch to the gut that some might never be able to overcome. When the financial crisis occurred it led to the government insuring most bank accounts up to $250,000. This was not aimed at all to protect the millionaires and billionaires but rather the working class and those too who the money in their bank account is what makes ends meet. 

 

For crypto to fully go mainstream blockchains, DAOs, Treasuries, etc. need to set up some sort of protection for people like this. I know it is much much easier said than done however, it is a critical step, and things like this show you how vital it is. It should be noted that like with the FDIC accounts this is aimed at those who are not the whales and are not rich. Every day people have been completely whipped out by this and the rumors about the actions that some have taken are truly soul-crushing. 

 

Blockchain though has shown that when a crisis or a devastating event takes place ideas to fix and prevent this issue rush forward and result in a better blockchain. I hope that in the months and years ahead that something along these lines is created and new investors can have some sort of security. If and when this is accomplished then the mass adoption can take off. Events like this though give people who are thinking about entering pause and cause regulators to go crazy and enact legislation that could hurt this industry.

 

Luckily for us, blockchain moves faster than regulators so there is still time for initial ideas to be put forward to create some sort of idea at least that the industry can point to before regulators take measures into their own hands. If the community does not take any action I am sure the regulators will somehow figure out how to do it for us as they always try to do. In the meantime really now is the time to show how the industry has grown to help create some sort of safety net for new or small investors. 

 

Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

 

Robinhood

Robinhood is offering a great signup deal if you use my link here where we will both be awarded free stock. All that you have to do is sign up and connect your bank account for the award! With commission-free crypto trading and the ability to set limit orders, it is a great hybrid offering in my opinion! Not to forget the addition of wallets and the ability to send and receive crypto!

 

Fold App

Offers daily wheel spins to win free sats daily! If you sign up for Fold with my link here you will get 5,000 sats for free!  

 

Unstoppable Domains

Sign up using my link here and get a free $10 credit towards your first $40+ purchase! 

 

Coinbase

Sign up for Coinbase and earn $10 of free Bitcoin when you buy or sell $100 in crypto with my referral here!

 

SMiles

If you are like me and walk to work every day this app rewards your walking with Sats! So far I have earned over 5,000 sats in just a couple of months walking to work! Here is my link!

How do you rate this article?


36

0

Cje95
Cje95

Graduated from Texas A&M in May of 2020 had dabbled in crypto since 2017 but dove in at the end of 2019. December of 2020 packed up and moved to D.C.! Huge sports fan, space nerd, and international newsreader! Follow me on Twitter @Cje95_


Chronic Illness and Crypto
Chronic Illness and Crypto

Cryptocurrency and Blockchain are going to be a huge part of the future and no matter who tries it isn't going to be stopped! Here I try to give my best insight and thoughts into the latest crypto news, features, developments. Further, I look to discover any link to news from the United States ranging from social-political issues to stock market and economic data.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.