The main challenges of mass adoption of cryptocurrency and what to do to encourage widespread use cases

The main challenges of mass adoption of cryptocurrency and what to do to encourage broad adoption

With the latest downward trend of crypts, it is almost impossible to talk about positive prospects and future projections. The recent falling prices of Bitcoin and, by extension, other altcoins have triggered widespread episodes of fear, uncertainty and doubt.

This is particularly alarming because most people have not expected the bitcoin price to fall to "extreme lows" of $ 3500. The "experts" are saying everything from "we saw it coming" to "bitcoin will drop to $ 0".

The expert observers of the sector and the participants know that this has happened so many times in the past. It is essential to note that 1 BTC was valued at less than $ 700 in July 2017 – slightly more than a year ago.

So all in all, the bitcoin is doing relatively well; maybe not as expected, but overall, it's not doing so badly. If we have learned something from past crypto-bearish tendencies, it is the fact that the market always bounces.

This is the reason why even if it still does not seem, this is probably the best time to start thinking about doing even more encourage the adoption of cryptocurrency through the globe. In this way, when the next bullish run begins, the industry can ride the wave and get more popularity and adoption.

To succeed successfully, we should identify and understand problems that could impede mass adoption.

Severely volatile markets

In December 2017, we saw the bitcoin rise to very high peaks of $ 18,000, bringing with it other cryptos. Also Ethereum is priced around $ 1,000. It was a fantastic moment for many initial investors and for those who have ridden the waves.

New millionaires have been minted and many have earned more money in a few months of encrypted trading than they have done over the past 5 years put together. Even better, we saw the traders who made a year's salary in less than 60 trading days.

These days, however, Bitcoin and the entire market are hurting. Bitcoin that was the treasure of all the cryptographers last year, it crashed to unexpected lows, with some experts, predicting even lower prices.

If you go through previous precedents, we can expect the value of bitcoin to rise in the near future. Unfortunately, this is one of the key issues affecting the mass adoption of bitcoins and other cryptocurrencies. This extreme volatility it makes it unsuitable for use as a reliable means of value exchange.

While there is every chance that the price will rise again to the stars, such fluctuations are not for the faint of heart. Furthermore, they are not suitable for use as a currency. The solution to these wild price fluctuations? Stablecoins.

We are starting to see more and more of these coins, whose values ​​are linked to real world resources, present themselves in the market. Self stablecoins reach a meaningful adoption, could become the preferred encryption of choice.

Smart investors they are usually wary of investing in activities fueled by mere speculation over tangible valuation. Bitcoin and many other encrypted ones are now in this category. Bitcoin and other encrypted must overcome these wildly fluctuating prices if they want to be around again in the near future.

Difficulty in use

One of the biggest challenges for cryptos as a whole is usability. Traditional currencies are popular because they are easy to use. There are no circles to cross. All you have to do is simply choose what to buy and pay.

Cryptocurrencies on the other hand, it can be boring. For example, signing up for a crypto exchange – even the most popular ones – can mean skipping a few obstacles like Know Your Customer (KYC), exchange fiat currency in bitcoins before exchanging other criptos, withdrawal limits caused by liquidity problems and much more.

Compared to traditional finance in which you also have contactless payment systems, cryptocurrencies are stressful. The good news is that there are some cryptographic projects that solve these problems and make life a lot easier for all crypto users.

Dash for example, is doing great things in the payments industry through its instant payment technology. But even with some of these technologies, there is still a long way to go with these cryptocurrency technologies.

Mass adoption becomes easier if and when usability becomes simple and intuitive. Alphanumeric addresses need to be replaced with something simpler like names or e-mails, hot and cold wallets need to be better protected and much more.

Even some of the most revolutionary products such as decentralized exchanges used for peer-to-peer transactions will need to have better user-friendly interfaces.

Scalability problems

Another big problem that has hit the industry is scalability. There is currently a limit to the number of transactions per second that most of these networks can process. Compared to the huge number of transactions carried out at the second VISA, the cryptocurrency sector is largely lacking.

And this is partly due to scalability problems. Some of the networks like bitcoin and ethereum they are working to solve this. If they succeed, they will further improve their chances of becoming widely acceptable.

Bitcoin is currently working on Lightning Network, while ethereum is working on the plasma protocol and SNARKS. If successful, the ethereum plasma protocol will greatly increase its ability to process hundreds of thousands of transactions per second.

And some companies see the potential of this technology, with the result of preparing to adopt the technology if / when it will eventually come out.

Settlement problems

Crypto's rapidly growing profile has seen regulatory agencies around the world, institute policies and the regulatory framework specifically targeted at the cryptographic sector.

While these regulations will help curb the excesses that are rampant in the sector and eliminate fraudulent projects, the reality is that they can be quite paralyzing. At this time, the regulations are at the service of the country and the state.

Some countries like Malta have favorable policies and frameworks, others like China do not. This has sent mixed signals throughout the crypto community, causing many potential investors to be wary of the industry.

The good news is that these regulations are forcing the industry to take a more in-depth look at some of its less honorable projects. Even if there is no central council or something like that, we are seeing countries formulate more and more policies that can help.

Furthermore, cryptographic exchanges are starting to include more traditional markets and activities in their training. For example, the launch of Bakkt by ICE Markets at the beginning of next year is creating a lot of buzz and putting the cryptographic sector in a favorable light.

In fact, the technology and the Bakkt platform will make it incredibly easy for users to migrate their bonds and stocks of paper certificates on the blockchain.

Current liquidity and security problems

Security and liquidity problems they are real and influence the current state of the market. As we speak, cryptographic exchanges are still fighting with liquidity, hence the need for safekeeping and security services.

This year alone, over 20 billion dollars in encrypted files have been stolen by hackers. Exchanges must strengthen their security by implementing hacker-proof security measures and failures. With these in place, investor confidence in cryptotics will rise on the roof.

If investors know that they can leave their tokens on an exchange platform and negotiate without the need to worry about losing their tokens, most would be easy. And this will have the added benefit of reducing liquidity problems as people would not need to withdraw so much money from the platforms.

Conclusion

The good news is that despite all these important challenges, all these key issues are resolved and treated. Once you have eliminated all these barriers, you can be sure cryptocurrency they will enjoy an almost instantaneous popularity and popularity all over the world.

And if you're worried about Crypto's rapidly decreasing fortunes, do not do it. The industry does this every 3-4 years as a form of correction. Investors familiar with the cycle know that this is the best time to actually buy and keep until the downtrend is reversed.