Crypto and blockchain space has grown at an exponential rate since its inception in 2009. However, it is only a fraction compared to the traditional financial sector.
Whether we’re talking about daily users, capitalization or reputation, cryptocurrencies are clearly a long way off.
So what measures are needed to increase the adoption of cryptocurrencies?
Increasing number of users
The first and probably most important factor that will determine the long-term fate of cryptocurrencies is daily use. In other words, global adoption is largely dependent on consumers using cryptocurrencies to pay for everyday goods and services.
Here comes the first hurdle – those who enter the crypto market for the first time have difficulties in purchasing. The good news is that many platforms have emerged that allow fiat to convert to crypto. The bad news is that they are not yet fully regulated. Things change gradually, however, and the authorities begin to implement operating rules that generate trust among customers.
People are starting to become aware of the usefulness of cryptocurrencies in crisis cases – the best example is Venezuela, where local currency hyperinflation has triggered an explosion in the use of Bitcoin for shopping.
Capitalization helps increase the adoption of cryptocurrencies
Currently, the cryptocurrency industry is worth about $ 270 billion. At its peak, the crypto market cap had reached $ 800 billion. If we compare it to gold (worth $ 8 trillion) or the US stock market ($ 30 trillion), it can be considered a small figure.
A fairer perspective would be a comparison with 2013 – when the crypto market was worth just over a billion dollars.
To support explosive growth, crypto-enthusiasts must use the platforms available to them to educate the masses and encourage people to enter the market. Because the reality is that few understand what Bitcoin means, how it works and what benefits it offers.
Essentially, the industry needs as many crypto-lawyers as Andreas Antonopoulos, who is constantly striving to educate and promote cryptocurrencies.
Reputation and recognition
Those who do not have much experience in the crypto space use terms like “scam”, “scam” or “pyramid scheme”. This is understandable if we consider the rather tarnished reputation of exchanges and the history of Bitcoin.
Cryptocurrencies have gained a negative reputation in certain demographic sectors and hinder global adoption.
However, the reputation of the industry is changing rapidly. Particularly due to the fact that a significant number of established institutions have since entered the space.
This in itself is excellent news for the growth of cryptocurrency adoption. When industry skeptics see the global institutions that they know and trust enter the market, eventually feelings toward cryptocurrencies will improve. In the long run, this is one of the key factors that will eventually lead to their adoption by the masses.