The main obstable for Crypto mass adoption

By raven | Computers | 3 Nov 2019


Why cryptocurrencies are still only used by a niche? More specifically, according to this website, only 8% of adults in the US own crypto. This is definitely more than before, but still not much, especially if you consider that the US is probably one of the largest crypto markets.

According to the same website, the main reason why people do not use it is that they find it "useless". That is not very illuminating.

But maybe we can gain some understanding of the problem by shifting from the whole cryptospace to the subspace of Dapps, which are some of the most useful things when it comes to cryptocurrencies at the moment. This very interesting article shows the result of a research made with dapp developers. There, they ask what is the biggest pain for dapp developers. Here are the answers:

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source here

So, the first problem is the small number of crypto users in general. Well, that does not answer our question ("there is no mass adoption because there are few users"). But the next items are very interesting. Particularly, we see that scalability is not the main problem pointed out by developers, but actually the bad user experience (UX) of using crypto. More specifically, things like having a wallet, obtaining crypto, and confirming transactions every time the dapp does something.

That actually is something that I can confirm personally. I could say I am a "tech savvy" user, but still it took me a couple of days to figure out how to setup a wallet decently. I even made a post here explaining how to configure an air-gapped ether wallet, but as you can see it is not that easy. To be honest, I am still not very comfortable with wallets, specially when you hold several different types of crypto, and you have to find a wallet solution for each of them... It is a pain.

We have to remember that the average person is not an IT expert. We need easier solutions. That is the number one obstacle right now for crypto: improve UX. Users want a safe, easy to use wallet, with possibility to acquire crypto directly from there, with "I forgot my password" option, etc. There will always be the possibility to hold your own private keys, but for novice users, with small balances, a custodial wallet is not a bad thing. When/if they become more interested in crypto later, they can always transfer their funds to a non-custodial wallet. But, again, most people don't care about this. There is where services like Coinbase are very helpful as well. Yes, they have ridiculously high fees, but the UX is very smooth. I acquired my first crypto there, but then soon migrated to Coinbase Pro and later also started to use Binance. But the learning curve is steep. People don't want to "learn" how to use money, they just want to use it.

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raven
raven

I've heard of bitcoin a long time ago, but only recently I became interested in investment in general, which brought me to the world of cryptocurrencies. I am also interested in learning to develop blockchain applications.


Computers
Computers

In this blog I will talk about computer technology: artificial intelligence, programming, blockchain, etc.

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