People are gradually adopting cryptocurrencies and such giant companies are considerably driving the adoption process as Facebook, Fidelity, JP Morgan who are now rolling out their versions of the cryptocurrency. The market for cryptocurrency is now worth $209 billion worldwide, almost a decade after it was first introduced.
The cryptocurrency market has been widely successful since its introduction. People are now widely aware of cryptocurrencies and their different types. However, the adoption of crypto has been mainly restricted to a small segment of people worldwide. According to Bloomberg, around a thousand users currently own an estimated amount of 40 percent of the Bitcoin currency that is in circulation right now. There is still a long way to go before cryptocurrency will be adopted by the masses, and we are currently facing various obstacles in the way to adoption.
Obstacles to Mass Adoption
- Lack of government regulation
One major obstacle is the regulation has yet to be imposed upon cryptocurrencies. Governments are still trying to figure out a way to regulate the workings of cryptocurrencies. Right now, anyone can set up their cryptocurrency, and they will not have to face any consequences if they are not able to accomplish their plans. It has not helped to increase investors’ confidence in the cryptocurrency market and is hindering many potential investors from entering it.
- Volatility
Another obstacle is the price volatility of cryptocurrencies. A change of 10 to 20 percent daily is pretty common among most cryptocurrencies. This volatility could pose various risks if people started to carry out their everyday transactions using cryptocurrencies.
- Security
Security issues surrounding crypto is another big barrier in the way of mass adoption. There are now organized hackers and scammers who can attack and steal easily. Over $1 billion worth of cryptocurrencies were stolen the past year. The lack of security is impeding the adoption of cryptocurrencies by the general public.
- Lack of education on crypto
People also have a hard time understanding cryptocurrencies and how they work. There is a widespread misconception that crypto is chiefly used by criminals so that they can launder money. The public needs more education on this topic, and they need to think about carrying out their daily transactions in a different way if they are to adopt cryptocurrency.
Path to Mass Adoption
Such conglomerates as Facebook and Samsung are helping in the mass adoption of cryptocurrencies. These companies are creating and introducing their versions of crypto. It means that the blockchain technology is being integrated into these companies’ payment systems and digital wallets.
For example, if the companies owned by Facebook i.e., WhatsApp, Messenger, and Instagram start using cryptocurrency for all the payment purposes, it is going to cause a massive adoption of cryptocurrencies by the public.
Peer-to-peer trade is perhaps the greatest reason for Bitcoin adoption. The fact that buyers and sellers can carry out their business directly with each other without the need for a third-party is a major catalyst for the mass adoption of Bitcoin. You can easily remove the cost of the third-party if you choose to carry out your trading through cryptocurrency.
There are some obstacles in the way of mass adoption of crypto, but the future of cryptocurrency looks bright with the various factors that are going to drive its adoption by the general public.
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