Top 10 Barriers in Crypto Adoption
Like any other latest technology, cryptocurrency has gone through its strides before becoming widely used. A list of theories on electricity was distributed as far as around the 1600s, but electricity didn’t arrive at houses until the 1800s. Even today, there is still around one billion population around the world who are living without it.
So, why there is so much pressure on cryptocurrency and bootstrapper technology behind it? So, let’s find out some main barriers that cause hurdles in the adoption of cryptocurrency in the market.
Be Alert from These Cryptocurrency Barriers
Cryptocurrency along with its foundational technology named blockchain has a massive potential to incredibly transforming networks of many industries. But like, other technologies that appear before it, an extensive adoption process is going to slow. To mark this consequence even worse, Deloitte pointed out that “blockchain fatigue” has brought their complete hold on this moment.
The average person with low knowledge can’t understand the concept behind cryptocurrency and listed crypto kitties price, how it works, or how it could fit into their lives. Associated with the fact that crypto is frequently linked with criminal enterprises, scams and extreme volatility, its easy to see why a lot of people are reluctant about analyzing this technology. So, barriers which are mainly found in crypto adoption are described as below;
1) Unlimited Contradictions
Blockchain technology was initially introduced or developed in order to support Bitcoin, which proves to be one of the most prominent and profitable cryptocurrencies currently, available. Originally, it was formulated to promote decentralization concept, security, and anonymity in almost all transactions with a crypto price today.
But, we have found out that it’s not quite as anonymous as most would like. In evidence, some cryptocurrencies also offer true anonymity concept, neither it is 100% secured. The crypto controversy is still rampant with scams, hacks and other misleading deals.
2) Defrauds and Criminal Activities
As you know that Bad news always makes the headlines, and now media is filled with countless stories of crypto exchange which are being hacked and investors are losing their funds completely.
Since there is no insurance policy created in most of the exchanges or clear restrictions in place, your currency could be there one day and gone the next.
Also, there are also other ICO scams that are happening on a far-too-frequent basis. While it’s not an immediate result of the technology itself, crypto does have a powerful correlation with criminal activities and shady approaches. This is, of course, as we mentioned above, is due to its anonymous nature and digital infrastructure of crypto coins price.
3) Crypto is Everywhere
According to the surveys, it was suggested that there are over 2000 different types of cryptocurrencies in use, whose worth totalled $220 billion.
Never think about the value, which is dizzying in its own privilege.
Furthermore, each and every crypto type is being made for a specific purpose. Some are constructed for agriculture and manufacturing, some for music diffusion, and still others for power and stability valuations among crypto price alerts.
Every day, more and more cryptocurrencies are adding info to the list which made it difficult for an average person to learn and understand. They get hesitant and feel about where to start and which cryptocurrencies have the best value and benefits?
Generally, some main digital currencies like U.S dollars fluctuate over time. Occasionally, it’s worth more and at the other time, it’s worthless, particularly, when converting into foreign currencies that are in flux themselves. Hence, the entire process is simplified.
A dollar is a dollar and you don’t relinquish money the longer you hold it. That’s not even true about most of the cryptocurrencies and crypto stock price. Their values fluctuate far too much, and far too often, to assist as a reliable digital currency.
While holding up most of the cryptocurrencies for some days, you could lose your hundreds and even thousands of dollars at a time. Hence, the volatility in crypto prices should have to to be eliminated, or even lessened extensively before this currency is adopted by the mainstream.
5) Peer-to-Peer Nature
The technology of cryptocurrency should be borderless, anonymous, frictionless and safe. Unfortunately, the peer to peer nature of cryptocurrency makes it anything but. With this, you can’t even know who is on the other side of the transaction or what’s have been done with the funds and goods.
You could contend that why the black market is meant to work this way, but crypto wasn’t refined to support black market dealings with crypto price chart. That makes it even more unavoidable and unfortunate byproducts. For the average person, this nature could create a barrier for cryptocurrency adoption.
6) Absence of Clarity
When we listen about the claims that blockchain is immutable, then later read that it isn’t really, or that Bitcoin is anonymous, but not as much as it was, then the crypto and blockchain technology becomes shrouded in a cloud. Absence of clarity from the crypto constituency and regulatory indecision isn’t assisting anymore.
If the specific people in charge of protecting investors didn’t decide what to name the tokens which they are regulating, then how is the general public will supposed to know? What is the main difference between the security token, utility token and equity token and why do we need to store them in the wallet? These are the questions, which still need clarity.
Have you ever shown your Grandma how to send a text or quit your parents to sign off their account on Facebook, hell no! you know that getting them for saving private and public keys for them may be a little hard.
The majority of the crypto community may not exactly mind the complexities of entering in 42-character addresses or securing their private keys with all crypto prices. So, user’s ability on this matter may cause a barrier for crypto adoption.
Scalability is another main barrier that throne in the developer’s side, and an incredibly prickly one at that. The Ethereum network can hold up to 15 transactions in a minute, bitcoin’s capacity is somewhere between 3-7 per second.
We literally can’t support the adoption of cryptocurrencies when it takes up to 10 minutes or more for a transaction to clear.
Still, around 2 billion people are waiting for cryptocurrencies to come, so this technology needs time to mature and figure out where to go?
9) Absence in Regulations
Lack of regulation and rules is still keeping many people away. We have to see some important tricks this year from ICO to STO and current legislation is done by smaller countries like Malta, but there is as much grey area exists where much disagreement finds among jurisdiction.
10) Environmental Effect
Sustainable mining is another barrier on which many developers are still working on. For them, Proof of Stake could be a viable solution, but it is less safe and more prone to the centralization that specific Proof of Work.
Today, different countries like Canada and Australia allow for crypto mining and using top crypto prices while using sustainable energy resources. We just need to decrease the amount of computational power than blockchains that need to run.
Today, plenty of barriers are surrounding the market to mass cryptocurrency adoption. Even just for changing a mindset, a culture takes some time. Blockchain technology may take a slow process and behave as bulky right now.
Cryptocurrency will enter into the mainstream with cryptocurrency market price, but it needs to be better, quicker, more sustainable and easy to use before it does.
That’s all for today. We hope you may like it, Feel free by commenting on your views down below.
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