In recent years the adoption of cryptocurrencies as a means of payment and investment has been on the rise. Despite the growing popularity, there are still several obstacles that prevent mainstream acceptance.
In today's article, I will try to name the factors driving cryptocurrency adoption and the barriers preventing it from becoming widely accepted.
What seems to be the biggest quality of Crypto, is decentralization. The thought of uncontrolled, transparent, democratic, transnational currency is very promising to many people. Especially in current times, when trust in the government and banking institutions is at its lowest.
Accessibility would be the second, most important characteristic. No matter where you are, no matter what you do, you can transfer your funds in a safe manner, within seconds to minutes, across the whole world if you need to. In legacy banking, certain operations would either generate costs that you would pay for, or they would take a long time to complete.
The Cryptocurrency name comes from the fact it's built on top of cryptographic blockchain algorithms, which guarantees its technological security. Immutability and transparency are also great tools for users to ensure their assets are safe and/or safely transferred.
What concerns many people but is also a huge driving force is Cryptocurrencies privacy possibilities.
Anonymous money transfers are potentially bad, but privacy, even economical is a right everyone should have because it makes the owner safe. The ability to research everyone's funds and income without a reason to do so, with a chance that this information can be used antagonistically is what degrades and taints democracy.
But there are some barriers that prevent mass adoption, and those are the problems that the Crypto industry tries to resolve.
The current biggest one is probably the regulation. Intrusive and exaggerated law is the greatest enemy. That doesn't mean that law isn't necessary at all.
The need for regulation is a very controversial and philosophical debate, and the whole subject would need a separate article about it.
The fact is that we are supposed to obey the law, and in order for the industry to grow today, it needs to comply with these laws.
What also scares most potential users from using Cryptocurrencies is the volatility. The fluctuating prices are scary for businesses and individual users. Over the years, the industry managed to create some solutions to this problem, one of which is stablecoins.
It may be only a coincidence but generally safe and probably easiest to adopt stablecoins are currently under the fire of the SEC, and bad actors from monetary institutions created a bad, twisted twin called CBDC which defiles what crypto stands for.
The last but not least, complexity and lack of understanding are what make adoption very hard. For many, technology is only a few fancy words and people do not understand what are the differences. For outsiders, it may be very veiled, how the crypto works and what are potential uses.
There is a lot of work going on in to make it simpler and educate people on Cryptocurrencies, but in order to introduce the majority of people to the concept and explain it, it would take a very long time if there will again be events such as Terra crash and FTX.
My thoughts
Cryptocurrencies evolve at a rapid pace, which is very promising in the context of widespread adoption. There is still a need for more research, but its conducted by thousands of people across the world and across different ecosystems. If the preachers don't stop preaching and users don't stop using crypto, we then will be on a long but straight road to making it happen worldwide. There are definitely some complicated questions that need to be answered first but I think its the better way.
None of the information in this article should be considered financial advice, it's my own analysis and facts I wanted to share with this wonderful community.
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