It has already been more than a decade since Bitcoin’s white paper was first published. Cryptocurrencies have come a long way since then, with the cumulative market cap of all coins and tokens reaching $3 trillion in late 2021. Yet, despite this fact, cryptocurrencies still have not had that much success in reaching the mainstream market. Dan Schatt of Earnity, the world’s first community-based crypto platform and marketplace, explores the possible factors hindering cryptocurrency’s mass adoption.
Changing views
One of the primary reasons behind the lack of mainstream adoption is that many people still view cryptocurrencies as too volatile and risky. As a result, the values of Bitcoin and other major coins have been highly volatile over the past few years, deterring many potential buyers. In addition, there is still a lot of uncertainty surrounding cryptocurrencies, making people hesitant to buy them.
Education matters
A possible reason for the reluctance about crypto is the lack of knowledge. For many people, cryptocurrencies are a completely new concept, and they do not understand how they work or the technology behind them. Earnity’s Dan Schatt asserts that for mass adoption of cryptocurrency to occur, the public has to be familiar with cryptocurrencies, blockchain, and how they operate.
Exploring new technologies
Another challenge that should be addressed is the difficulty involved in managing private keys. To own and use cryptocurrencies, people need to generate and manage private keys. It can be a daunting task for people who are not tech-savvy or are not familiar with cryptography. Even remembering 64-character seed phrases is already a tall order for some.
The last big obstacle to mass adoption is the limited use cases of cryptocurrencies. For the moment, cryptocurrencies are mostly utilized as speculation vehicles. Fortunately, the number of legitimate use cases for cryptocurrencies continues to increase. These include buying goods and services online or sending money remittances.
