Yes...Cryptocurrency will be mainstream. But Not For The Reasons You Think...
Take a quick look at all the news articles on this topic and you will find arguments for both sides of the coin. Some "top experts" believe cryptocurrencies, like Bitcoin, are a scam and are useless compared to paper money. Other "top experts" can't stop singing their praises. It's pretty exhausting, and that is exactly what I find most interesting about it. There is so much intense emotion from both points of view, which only validates that there is at least some legitimacy. Otherwise why all the fuss? In this article, I want to discuss why I believe cryptocurrency will be mainstream and why that matters for you.
Education leads the way...
Reason #1 Mass Adoption Will Happen: Blockchain education has drastically increased over the past several years.
Billions of dollars are being invested in people who know how to code blockchain projects and there are thousands of new blockchain projects being worked on as you read this article. This means that the best minds are consistently learning from their mistakes and this leads to improved infrastructure for cryptocurrency.
-About 40% of the top universities offer at least one course about cryptocurrencies or blockchain. (According to Coinbase Survey)
-About 20% of college students own some amount of Bitcoin or other cryptocurrency. (According to Coinbase Survey)
-Increase demand for coding / cryptography skills in the marketplace. The average salary for a blockchain developer is $127,000.
-Many top universities have blockchain or cryptocurrency clubs that meet regularly to work on cutting edge projects.
With better education and higher paying jobs comes improved skills and technology. More and more people will be drawn to this field leading to continued advancement. This trend is one of the most telling signals about the future adoption of cryptocurrency.
Why It Isn't Mainstream Already?
From my point of view there are 3 main reasons cryptocurrencies are not mainstream already. Psychological, Technical, and Outside Forces.
Psychologically Speaking...
We all know that change stinks. Learning new ways of doing things is frustrating and it is easier just to avoid doing it in the first place. We generally will leave good enough, as good enough, unless there is some major reason to change. Cryptocurrency is a great technological advancement but it is complicated to wrap your mind around. This is the first reason it hasn't been better adopted to this point.
Important History Lesson:
Sometime around 2008, the United States and other world economies were experiencing extreme financial pain. The economic landscape was spiraling, and people were desperate for answers. Bitcoin was birthed out of the psychological need to escape the pain of a crumbling financial system with it's faltering paper money. In short, people were looking to escape financial pain, and they were seeking something they could depend on. It was at this point that the promising new technology called blockchain entered the scene accompanied by its partner known as cryptocurrency. Now about 10 years have past. World economies have rebounded and improved, at least that is how it would seem. Doesn't it seem interesting to you that cryptocurrencies have flourished during a time of seemingly great economic growth with little or no need for change?
Why do they continue to grow then?
The cat is out of the bag. People are aware that even though things look great currently from an economic perspective, they also don't completely trust the shaky foundation of fiat paper money in the long term. We are 10 years into this technological development known as cryptocurrency. It isn't perfect yet but it has proven itself to a point where even the average person can't deny its potential.
Reason #2 Cryptocurrency Will Be Mainstream:
Our current financial system is in trouble and whether we admit it yet or not, we realize that something needs to change. Cryptocurrency represents a clear and viable opportunity to break from a system that seems to be crumbling in its foundation.
Now That's Logical...isn't it?
Technologically Speaking:
The biggest obstacle holding cryptocurrencies back are themselves... And this will not last for long!!!
When cryptocurrency burst on the scene in 2017, it exposed many major flaws that needed to be addressed in its technological foundation before it can be truly adopted. Volatility, transaction time, scalability, system vulnerabilities, ease of use, and lack of real life use cases all were suddenly concerns that urgently need to be addressed. Currently, there is a frantic race to solve these issues and there are massive financial rewards attached for those who do.
Reason #2 Cryptocurrencies Will Be Mainstream:
Humans have put people on the moon. Do you really think, that given enough time, these problems will not be solved? When people want something bad enough, they find a way to make it happen. Billions of dollars have been invested for the purpose of education, technology improvement, and resource development specifically aimed at answering these technological problems. It is only a matter of time before these problems will lead to new solutions and higher trust in the underlying cryptocurrency technology. With higher trust comes higher adoption.
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Outside Forces: Regulation and Taxation
Quick question for you the reader: If you controlled the money printer and all the money that came out of it, would you want something else to replace it? Of course not! Governments and their Central Banks (Federal Reserve in the US) are in no rush to give up the sweet deal that they have made for themselves.
In general, I believe that cryptocurrencies will need to have some kind of regulation in order to establish trust in the market. However, every country has a different idea of how cryptocurrency should be adopted. Countries with the most power probably have the most to lose and therefore will probably be less likely to adopt cryptocurrency. How each country decides to take its stance on the economic policy that guides cryptocurrency will play a major role on how quickly adoption takes place.
In addition, Taxation is a big deal for the average person, investor and government. Everyone wants their money right? Tax laws will vary and also limit the adoption of cryptos. The tax landscape changes based on whether your country views cryptocurrency as an asset, a currency, or something else.
But Here Is The Good News...and Reason #4 For Mass Adoption:
While Regulation and Taxation are hindrances to mass adoption, Governments Cannot Truly Control Cryptocurrencies. The very nature of blockchain is that it is decentralized and therefore cannot controlled by one entity (such as a government). Cryptocurrencies will be mass adopted because people will eventually want more control of their assets.
So When Will Mass Adoption Happen?
Answer: The next time we have a major economic recession there will be a mass adoption of cryptos. It may not be immediately after the recession begins but as difficult times persist people will be looking for solutions.
The combination of Psychology, Technology, and Outside Forces are a perfect storm waiting to happen for cryptocurrency mass adoption. World governments continue to erode the value of the dollar by printing it into oblivion. Economic downturn will provide enough psychological pain for people to want to change and seek new alternatives. Technology is racing to become viable and more trustworthy as an alternative.
The writing is on the wall for fiat paper money. As the digital age becomes more of a reality, paper money will likely die a slow death, ushering in a new currency known as cryptocurrency.
The question is how will you prepare yourself and position yourself for the coming shift?