It’s hard to believe that just 20 years ago, only 50% of households in the United States had the internet. Trying to remember what it was like before the internet is hard. It took time for people to embrace computers in their homes and then the internet.
The same could be said for cryptocurrency. It will be hard to imagine a world where cryptocurrency isn’t the norm. Like the internet, cryptocurrency adoption is slow. Blockchains and cryptocurrencies are complicated to understand. They don’t fit into the traditional concept of finance, and while some people understand the concepts easily, others do not. If cryptocurrency is going to be adopted, people need to be educated on how it works and what it can do it for users.
Cryptocurrency Needs To Be Simplified
For adoption to take place, cryptocurrency needs to be simplified so that potential investors understand how it works. The first thing users need to understand is that there are differences between traditional fiat money (dollars, pounds, yen, Euro, etc.) and cryptocurrencies such as Bitcoin (BTC), Ether (ETH) and others. Cryptocurrency, like Bitcoin, is decentralized. This means that it is a global digital currency that is not backed by some financial entity and immune to interference by the government.
Another difference between fiat currency and cryptocurrency is that cryptocurrency has no physical form. It is all contained in a user’s crypto wallet and only accessible using special private keys. Unlike the dollar whose value rises and falls with inflation, and seems to have an endless supply, cryptocurrencies, like Bitcoin, has a limited supply. Its value isn’t influenced by inflation which means that it can increase in value over time. Users who adopt cryptocurrency can use it in conjunction with their traditional financial systems as more banks are starting to adopt it as well.
Cryptocurrency Technology Needs To Be More User Friendly
People are also hesitant to look into cryptocurrency because they feel the inner workings of cryptocurrency technology is complicated. They don’t know how to access more than one type of finance or how to use their digital wallets. They also need to understand that they can exchange their cryptocurrency for fiat whenever they want. Thanks to crypto debit cards, they can easily access their funds.
Onboarding new users’ needs to be easier. They need to be comfortable with purchasing and trading their cryptocurrency. They also need to be taught how to access more than one type of cryptocurrency in one place. It is more important that they understand how to access their digital wallet and how to use it than it is how it all works on the backside. The onboarding process should be easy to understand, make sense, and simple to use.
Cryptocurrency Ecosystem Needs To Be Better Than It Is Now
Finally, for users to adopt cryptocurrency, there has to be a need for it. Over the last few months, investors are coming to find that they don’t have as much control over their finances than they thought. Traditional fiat investments have been hit hard with the global pandemic. Cryptocurrency offers users more control and autonomy over where they invest their money. Many types of cryptocurrency also offer a reward system where they can earn cryptocurrency through making purchases.
Getting these changes implemented will take time. Eventually, cryptocurrency will be adopted, just like the internet.