Introduction Cryptocurrency, which is a digital form of money that uses encryption technology, has begun to gain the trust of so many. Its ability to gain value over time and show some characteristics of portability and flexibility gives it more advantage over traditional fiats. All thanks to the Blockchain technology that has brought this new form of money. With the aid of a crypto wallet, housing personal funds has never been a problem for crypto users, putting them in charge of their finances.
Mainstream adoption happens to be a very key point in the area of cryptocurrency, but the crypto community isn't fully focused on that aspect. Due to how massive the crypto community is on the internet, most people believe that there is no need for mass adoption as it is already in place. The crypto communities that are fully based on the internet have become an illusion that tricks us into thinking that cryptocurrency has been made known in every part of the world. Some of the crypto enthusiasts fail to recognize the fact that there are certain places that cryptocurrency hasn't reached, or certain people who haven't identified what cryptocurrency truly stands for due several reasons.
For cryptocurrency to gain mainstream adoption, we first have to recognize its uses to those who are adopting it. From the post made by @Tribalchief, he gave a good example on the area where cryptocurrency can be effective, which is in our
daily transactions .Daily transactions happen to be a very vital area of business for everyone, as we tend to buy goods and render services through a medium of exchange (money). Another important area of cryptocurrency for those adopting it is
investment. Due to the ability to accumulate in price over time,
some cryptocurrencies have proven to be good investment assets with promising profits in the future. We've been able to identify two important areas of cryptocurrency application to those adopting it, but there are certain factors that are affecting mainstream adoption. These factors are causing limitations to the vast usage of cryptocurrency by so many.
Challenges Affecting Mainstream Adoption - Government Regulation
- Weak community/personal promotion
- Complexity
- Digital illiteracy
- Misinformation
- Legal issues and awareness
Government Regulation : Since cryptocurrency started gaining attention from every sector, the government saw the need to implement regulations that would guide all activities relating to crypto buying and selling. Ideally, cryptocurrency (Bitcoin, in particular) was introduced to limit the interference of third parties and offer a peer-2-peer mode of financial interaction, but this purpose has almost become a threat to those in authority. We've seen how the Securities and Exchange Commission (SEC) tries to uncover vulnerabilities in crypto project, thereby limiting the adoption of those projects. We've also seen several lawsuits filed by the SEC against Binance, Coinbase, Ripple, etc, and the delay of spot Bitcoin ETFs.
Weak community/personal promotion : An effective community is supposed to be a catalyst that propels growth and mass adoption, but only a few cryptocurrencies, such as Bitcoin and Ethereum, have a strong community. The majority of the coins in the market today don't have a strong community to promote what a particular project truly offers. People only promote a crypto project at the point of introduction and end up dumping it after making a profit from it. This has literally affected major crypto projects and has reduced their chance of getting adopted.
Complexity : When we talk about cryptocurrency, there are several terminologies that make it up. These terminologies all have their meanings and functions, which enable every cryptocurrency to function in its own manner. The Bitcoin protocol, for example, is said to be open source, comprises of several complex codes that are understood by only a few. Not everyone can grasp the complex codes behind
Cryptography, which would certainly reduce interest from the majority.
Digital illiteracy : Even with the availability and accessibility of electronic devices, digital illiteracy is still very common, especially among senior citizens and in undeveloped countries. Some people who possess these devices still find it difficult to make proper use of the internet. With the presence of digital illiteracy, understanding cryptocurrency and its usage could be very difficult for someone with zero knowledge.
Misinformation : This has been a major problem affecting cryptocurrency in general. Certain crypto enthusiasts tend to disseminate incorrect information, especially regarding investment and profit making. They choose to neglect the risks associated with cryptocurrency, thereby putting someone's investment at risk. When things go wrong, the investor becomes a victim and starts condemning cryptocurrency in every way.
Possible Solutions The possible solutions can be figured out by addressing the challenges affecting mainstream adoption. If the
government limits their actions on exchanges and certain crypto projects, it would encourage mainstream adoption, thereby bringing more people to the community.
Strong community/personal promotion seems to be the best way to increase mainstream adoption of cryptocurrency. Crypto communities like
Altcointalks,
Bitcointalks and a few others are like breeding grounds for the promotion of crypto adoption. These are communities that house thousands of crypto enthusiasts from around the world, discussing and promoting cryptocurrency in one way or another.
Personal promotion is also common, especially on platforms like X, Altcointalks, Bitcointalks, etc. This actually involves a single user who promotes crypto related services via his/her social accounts with a good reputation and track record.
AB de Royse777 happens to be a crypto marketer who promotes several crypto projects on Altcointalks, Bitcointalks, etc. According to his saying, Royse777 emphasizes on
adoption and
creating awareness:
Crypto marketing is not just about promoting a project; it's about creating awareness, building trust, educating stakeholders, and fostering adoption in a rapidly evolving and competitive landscape. When you decide to partner with us to help your brand visible to the crypto community we focus on many things to achieve the best for your project including visibility and adoption, education and awareness, trust building, competitive edge, and community engagement
The
complexity of cryptocurrency can be reduced to the lowest minimum, thereby simplifying things for new users. The basics about cryptocurrency might suffice for those who are new.
Digital illiteracy might be difficult to handle due to the lack of organized movement in limiting it. This area clearly requires personal effort to learn how digitalization works.
And lastly,
misinformation seems to be very difficult to address, but with the collective efforts of everyone in the crypto community, we can discourage it and encourage the dissemination of correct information.
Quick Information : The Topic of this post is "What challenges do cryptocurrencies face in achieving mainstream adoption?" And not "what challenges does Bitcoin face in achieving mainstream adoption". Reference @Tribalchief's post:https://www.altcoinstalks.com/index.php?topic=319547.0@MrSpasybo's post:https://www.altcoinstalks.com/index.php?topic=319547.msg1525248#msg1525248@AB de Royse777 quote: https://www.altcoinstalks.com/index.php?topic=312617.0