Ten years ago, bitcoin was only a philosophical research paper for a new type of digital currency. Even five years ago, most people outside the tech sphere had only heard the name in passing. If they had any familiarity, they often dismissed the technology as internet money for geeks or get-rich-quick schemes.
If you have a television, radio or mobile, you know things have changed since then.
You can’t pull up any major finance or tech publication today without finding stories on the crypto market or blockchain news. Experts constantly talk about the future of crypto, while amateur and professional investors eagerly manage their cryptos in anticipation of the great dream of a crypto-first future.
The future of crypto is uncertain -- that is the only fact we know for sure. While crypto has garnered tremendous enthusiasm, most people and organizations continue to leave crypto to the niche-tech enthusiasts. For the crypto revolution to launch for the stars, significant changes and improvements need to be made.
The way I see it, crypto will need to tackle four major hurdles to achieve mass adoption:
Volatility
Everyone knows how much money a $20 bill is worth. Only a few people know how much a bitcoin is worth, and its value seems to change every minute. From the smallest altcoins to the biggest contenders, cryptocurrencies don’t offer the stability that people expect from transactional currency.
Bitcoin may be the biggest name in the industry, but its relative volatility has harmed crypto’s image. Smaller coins only move a fraction of a cent at a time, while bitcoin can crash or soar in any given moment. Though bitcoin has settled down to be slightly more stable, most people only remember the major crash at the height of its popularity in late 2017.
Crypto investors are familiar with the rumors, regulatory uncertainties and speculations that fuel shifting prices. However, general audiences are less familiar. For crypto to act as the currency it wants to be (and not just another securities-like asset), mass consumers need to know just how much value their digital money is worth.
Regulatory Uncertainty
Lack of regulatory guidelines makes it hard for governing bodies to get involved. No one wants to be the person to squash growth, but at the same time, no one wants to sit back and letfraudulent initial coin offerings (ICOs)take the money of honest consumers.
Severalmajor financial institutions(subscription required) planned to join the crypto race in 2017, only to back out when the crash came down. The New York Stock Exchange still hasn’t opened its long-awaited crypto exchange, and no one knows when regulators will create some form of legal framework.
Today, most crypto operations can only comply with vague rules and best practices. Regulation will eventually come, but until someone clarifies the rules (and holds crypto companies accountable to them), most people will remain content to wait on the sidelines.
Security Concerns
Blockchain offers unparalleled security compared to other technologies -- or at least, it’s supposed to. The cryptocurrency world is unfortunately filled with scams, hackers and bad actors eager to part tech enthusiasts from their virtual money.
Mainstream audiences read headlines about major crypto hacks and decide to keep their money in traditional locations. Who could blame them? Hackers have taken millions of dollars in cryptocurrencies, often right out from under the noses of people who should know better. I believe many are left wondering: If crypto companies can’t keep their own funds safe, how could they possibly safeguard their customers’ investments?
We are already seeing new protocols, processes and technologies being improved upon to help prevent fraud, hacks and malicious intent. Like all things, time will only tell how valid these secure solutions will be.
Lack Of Education
As daunting as most of these issues may seem, the primary issue remains simple: Many people don’t understand crypto. They may read about the complexities and potential of digital currencies, but if they want to learn more, they have to take the initiative. When faced with a choice between hours of homework or anything else at all, most people choose the latter.
The problem isn’t resources. Plenty of enthusiasts and companies have created simple, easy-to-follow guides on everything crypto. I find that the average person simply doesn’t want to deal with the responsibility of private keys when simpler, more accessible vehicles are available.
We Need Simpler Onboarding For New Users
The current onboarding system for new users requires a lot of technical support, moral support, third-party software and extensions.Furthermore, tracking and managing crypto is difficult for new users who aren’t sure how to manage their assets. We need to work toward streamlining the simplicity of purchasing crypto, saving/storing crypto and managing it, especially for less tech-savvy individuals.
The sign-up and know your customer (KYC) processes are lengthy and personal. Finding a streamlined way to verify users is important.We need smarter solutions and backups for private keys, and stronger security with multiple authenticationand protection that requires minimal involvement from the user.
I believe that when crypto investing and usability become as simple as Instagram and traditional banking, it will go mainstream.
Businesses also lack education on crypto subjects. The Chamber of Digital Commerce and other organizations are working to change that, but I find that the people who avoid crypto in their personal lives are often the same people running the businesses that steer clear of alternative investments. As blockchain enters more business processes, perhaps those professionals will learn to love the technology behind the cryptocurrencies they struggle to understand.
Before mass adoption becomes reality, the crypto industry must address these obstacles to provide people with the security they desire.Even the smallest participants can make a big change. More and more people in cities around the world have formed resource centers and crypto communities to foster learning and innovation. By educating the world around us and building tools to tackle these challenges, everyone who knows and loves crypto will have the power to accelerate its adoption.
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