Cryptocurrencies are getting some airtime as the media finally reports about them. You will even find them on the front page headlines as finance experts discuss cryptocurrencies and the blockchain technology.
Despite the recognition, the majority of the population has not yet adopted cryptocurrency. While knowledge about cryptocurrencies such as Bitcoin may be on the rise, many people are still not confident enough in it to invest. In same breath, many investors are still wary the blockchain technology as well.
Experts argue that the reason for the slow adoption of cryptocurrency has more to do with it being in its infancy. Together with Blockchain, crypto is relatively new. New technologies take a while to latch on as people wait to see how they will work out.
Nevertheless, there are companies that working to ensure that this new technology is adopted faster. The following are the challenges that hinder cryptocurrency adoption and trybe.one gives details on how solutions are being sought.
Obstacles to Cryptocurrency Adoption
Challenging to Use
Digital currencies are always fluctuating and can go up or down by huge margins even in one day. This makes it rather difficult to use cryptocurrency to make purchases.
In addition, many digital currencies are more about investment rather usability. This is a major reason for the fluctuation in cryptocurrency markets. The intended purpose was investment not usability.
Platforms have come up that are working towards providing outlets for digital currency usability. They want to make it possible to use cryptocurrencies to be used to pay for services and products. Therefore, digital currency will not be simply speculating about value.
Cryptocurrencies supporting the expending blockchain ecosystems will become more usable with time. When investors realise that they can use digital currencies as more than an investment it will be easier to persuade them to invest.
It is Not a Tangible Asset
If it is not a tangible asset, it does not have a tangible value. There is no paper or coin format of the digital currency such as Bitcoin. If you cannot see it, well, it does not exist. This makes it difficult to convince potential investors that cryptocurrency is real.
Platforms that have actual use cases can be used to inform those that are curious about the digital currency market. If they can see how effective they are, they are likely to adopt them as a bona fide currency.
They Are Not Convenient
Using cryptocurrency is not a straightforward process. There are myriads of exchanges to go through as well as wallets and storage platforms to contend with. You cannot exactly withdraw cryptocurrency or bank it in a client’s account. It is therefore not convenient.
On the other hand, conventional currency has never been so convenient. You can withdraw your money from your bank from the comfort of your living room on your phone and transfer it to another account. Similarly, you send it via phone to a friend or make a purchase via text.
There are platforms that offer crypto debit cards that function like the usual bank debit cards to make digital currency, especially Bitcoin, more accessible and convenient to use.
There have been scandals after scandals affecting cryptocurrencies with nefarious characters hacking into systems and stealing billions worth of investments. This brings about the issue of trustworthiness. Investors are afraid to risk funds only to lose them in a web heist.
Many digital currencies are coming up with ways to ensure that they are not hacked. They enlist a list of companies to pilot their technology for security purposes. They are also using media platforms to inform the public about their activities, thus creating awareness about their efforts to arrest the situation.
Cryptocurrency is going to gain a number of serious investors going by the attempts to make it more secure and usable. It may soon be possible to have a debit card in your wallet with which you can transact using digital currency.