{"id":2880,"date":"2018-08-22T10:17:22","date_gmt":"2018-08-22T10:17:22","guid":{"rendered":"https:\/\/atozcrypto.org\/?p=2880"},"modified":"2018-08-22T10:18:24","modified_gmt":"2018-08-22T10:18:24","slug":"what-are-the-barriers-to-widespread-cryptocurrency-adoption","status":"publish","type":"post","link":"https:\/\/atozcrypto.org\/what-are-the-barriers-to-widespread-cryptocurrency-adoption\/","title":{"rendered":"What Are The Barriers to Widespread Cryptocurrency Adoption?"},"content":{"rendered":"
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FIRST PUBLISHED ON 20 AUGUST 2018|ARTICLES BY CHRISTINA COMBEN ON COINCENTRAL<\/figcaption><\/figure>\n

9 Main Barriers to Widespread Cryptocurrency Adoption<\/span><\/h2>\n

Like any nascent technology, cryptocurrency has to go through its paces before becoming widely used. Theories on electricity were published as far back as the 1600s, but electricity didn\u2019t arrive into homes until the late 1800s. Even today, there are still around\u00a0one billion<\/a>\u00a0people around the world who live without it.\u00a0It\u2019s not surprising, then, that in just one-decade mass\u00a0cryptocurrency adoption is still a long way off.<\/p>\n

So why is there so much pressure on cryptocurrency and the\u00a0powerhouse technology<\/a>\u00a0behind it? We\u2019ve reached the peak of inflated expectations with blockchain being touted as a solution to all the world\u2019s ills. In fact, one of the main barriers to mass cryptocurrency adoption may simply be that we\u2019ve marketed it too much\u2013with little substance to back up our claims.<\/p>\n

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DON\u2019T SPEND A PENNY ON BITCOIN WITHOUT FIRST READING THIS EBOOK!<\/figcaption><\/figure>\n

According to a recent\u00a0survey<\/a>\u00a0by Deloitte, \u201cblockchain fatigue\u201d is starting to set in around the world. But beyond the fact that people are bored of hearing about this digital money they don\u2019t fully understand, there are plenty of other barriers to mass cryptocurrency adoption. Let\u2019s take a look at the top nine.<\/p>\n

1. Lack of Clarity<\/h2>\n

When we hear claims that\u00a0blockchain is immutable, then later read that it isn\u2019t really, or that\u00a0Bitcoin is anonymous, but not as anonymous as we thought it was, blockchain becomes shrouded in mist. There\u2019s a lack of clarity from the cryptocurrency community and regulatory indecision isn\u2019t helping.<\/p>\n

If the people in charge of protecting investors can\u2019t decide what to call the tokens they\u2019re regulating, how is the public supposed to know? What\u2019s the difference between a utility token, security token, and equity token, anyway\u2013and why do you have to store your invisible money in a physical\u00a0hard<\/a>ware wallet?<\/p>\n

A lot of these questions are hard for crypto insiders to answer, let alone the layperson who\u2019s receiving a watered-down version of explanations.\"\"<\/a><\/p>\n

Smaller countries like\u00a0Malta<\/a>\u00a0are launching programs to educate the general public, particularly the people who will use blockchain tech on a daily basis, such as government employees.<\/p>\n

Other countries, including Ireland and\u00a0Australia<\/a>, are working to create Ph.D.s and other university courses in blockchain\u00a0technology. They\u2019re also going into schools at an early age to encourage\u00a0children to spark an interest in programming. And companies like\u00a0ConsenSys<\/a>\u00a0are offering crossover courses in the Ethereum blockchain to developers, mathematicians, computer scientists, and enthusiasts from other disciplines who want to explore this new technology.<\/p>\n

There are also a number of courses online, including free podcasts, and YouTube tutorials. But until we can tighten the narrative, stop selling the emperor\u2019s new clothes, and start on useful education initiatives to provide\u00a0much-needed clarity, widespread cryptocurrency adoption is still a long way off.<\/p>\n

2. An Overwhelming Amount of Cryptocurrencies<\/h2>\n

There\u2019s something like\u00a01,800\u00a0cryptocurrencies currently listed on Coinmarketcap. Not all are created equal, nor intend mass adoption (some are for gamers, others for agriculture, others still for music or art). Many of them show extraordinary promise and rock-solid theories, use cases, and community support. But there are plenty more companies launching tokens purely to raise funds.<\/p>\n

Until we cut out the useless cryptos and\u00a0improve interoperability between blockchains, mass cryptocurrency adoption will be hard. With so many on offer, how do people with little experience know which ones to buy or whether one will emerge stronger than the rest?<\/p>\n

Moreover, if the point of cryptocurrency was to allow for borderless, frictionless, peer-to-peer payments, why do we need so many? There are only\u00a0180 government-issued currencies<\/a>, so aren\u2019t we complicating things a little too much?<\/p>\n

3. Usability<\/h2>\n

If you\u2019ve ever shown your Grandma how to send a text or stop your parents signing off with their name on Facebook, you\u2019ll know that getting them to save private keys and public addresses may be a little hard.<\/p>\n

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Myetherwallet<\/figcaption><\/figure>\n

The majority of the crypto community may not mind the complexities of entering in 42-character addresses or securing private keys. But the wider public does. The reason the\u00a0cybercrime industry<\/a>\u00a0is so prolific is that we continually opt for convenience over security. We choose simple passwords that are easy to crack, stay logged into our sessions, or sign up for new accounts using Facebook.<\/p>\n

Making cryptocurrency transactions smoother and account creation simpler remains a barrier to mass cryptocurrency adoption. Many people are currently put off by having to upload a selfie with their ID card, but as regulators get tougher on\u00a0KYC\/AML<\/a>\u00a0requirements, usability will continue to be a hurdle.<\/p>\n

4. Scalability\"\"<\/a><\/h2>\n

Scalability is a thorn in many a developer\u2019s side, and an extremely prickly one at that. The Ethereum network can still only support around 15 transactions per second. Bitcoin\u2019s maximum transaction processing capacity is somewhere between 3-7 per second. While other blockchains such as\u00a0NEO\u00a0or non-blockchains like the DAG are offering new solutions, they don\u2019t come without their own challenges.<\/p>\n

We can\u2019t support mass adoption of cryptocurrencies when it takes 10 minutes or more for a transaction to clear.\u00a0Scaling to onboard more users is one of the greatest challenges there is.<\/p>\n

But if we think back to electricity, then that\u2019s actually okay. After all, we\u2019re still waiting to connect the rest of the world to the energy grid. 2 billion people around the globe are still waiting for an internet connection. So, it\u2019s unlikely that mass cryptocurrency adoption will happen any time soon. The technology needs time to mature and figure out solutions to its problems first.<\/p>\n

5. Scams & Hacks<\/h2>\n

Just as bad news always makes the headlines, the media is filled with stories of cryptocurrency exchanges\u00a0being hacked\u00a0and investors losing their funds. Since there\u2019s no insurance policy on most exchanges or clear regulation in place, your money could be there one day and gone the next. Think Mt. Gox, Bitfinex, or\u00a0The DAO.<\/p>\n

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Then there are the ICO scams happening on a far-too-frequent basis. The SEC is trying to educate people in the US on these types of\u00a0problems through initiatives such as the\u00a0HoweyCoin<\/a>\u00a0scam. This is to show investors the possible red flags to watch for when backing an ICO. Tighter regulation will weed out more fake ICOs. In fact, Malta\u2019s\u00a0latest laws<\/a>\u00a0have some of the strictest requirements for white papers out there to purposely remove bad actors from the space.<\/p>\n

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6. Volatility<\/h2>\n

You may be a fan of\u00a0Bitcoin<\/a>,\u00a0Ethereum<\/a>,\u00a0Litecoin, or\u00a0Cardano. But you have to admit, none of them come close to being effective as a means of everyday currency. Even\u00a0Dash\u00a0still fluctuates far too much to make large purchases with confidence (unless you\u2019re living in a country with hyperinflation).<\/p>\n

If we\u2019re to use cryptocurrency as a currency and not an investment vehicle, we need to lose the volatility.<\/p>\n

7. Criminal Association<\/h2>\n

Bitcoin was part of the reason that the\u00a0Silk Road\u00a0grew to its dizzy heights of fame selling drugs, weapons, and even hitmen online. Thanks to money laundering, terrorist financing, and other criminal activity, Bitcoin earned a\u00a0sketchy reputation.<\/p>\n

In fact, Bitcoin was also the most popular payment method for cybercriminals in Ransomware attacks in 2017. And now\u00a0cryptojacking\u00a0is the biggest cyber threat this year, growing by\u00a08,500 percent<\/a>\u00a0in Q4 of 2017.<\/p>\n

While it\u2019s true that not all ICOs are scams, not all cryptocurrency funds are hacked, and most\u00a0criminals prefer the US dollar to launder money, the negative associations still linger on.<\/p>\n

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DON\u2019T SPEND A PENNY ON BITCOIN WITHOUT FIRST READING THIS EBOOK!<\/figcaption><\/figure>\n

8. Regulation<\/h2>\n

Regulation, or rather, lack of regulation is still keeping many people away. We\u2019ve seen some major moves this year from ICOs to\u00a0STOs, and new legislation from smaller countries like Malta, but there are still far too many gray areas.\u00a0And of course, there\u2019s too much disagreement between jurisdictions.<\/p>\n

While setting a global standard in regulation may not be possible (or even desirable), at least a basic agreement on KYC\/AML practices could prevent further crime and encourage more people to enter the space.<\/p>\n

9. Environmental Impact<\/h2>\n

Nearly\u00a0three in four millennials<\/a>\u00a0would pay extra for sustainable goods. There\u2019s never been a generation as conscious about the environment as millennials. But while reports of Bitcoin mining\u2019s disastrous effects on the environment and draining natural resources are rife, crypto remains a hard sell.<\/p>\n

Sustainable mining is another problem developers are working on.\u00a0Proof of Stake\u00a0could be a viable solution, but it\u2019s less secure and more prone to centralization than Proof of Work.<\/p>\n

While countries like\u00a0Canada\u00a0and Iceland allow for cryptocurrency mining using sustainable energy resources, we need to do a better job of reducing the amount of computational power that blockchains need to run.<\/p>\n

Mass Cryptocurrency Adoption Is Still a Ways Off<\/h2>\n

There are plenty of barriers to mass cryptocurrency adoption. Even just changing a mindset and a culture takes time.\u00a0Blockchain may be slow and clunky right now, but it\u2019s only been just over a decade since the smartphone appeared on the scene (remember your Nokia brick?). Cryptocurrency will enter the mainstream, but the technology needs to be better, faster, more sustainable, and easier to use before it does. SOURCE: Coincentral<\/a><\/p>\n

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9 Main Barriers to Widespread Cryptocurrency Adoption Like any nascent technology, cryptocurrency has to go through its paces before becoming widely used. Theories on electricity were published as far back as the 1600s, but electricity didn\u2019t arrive into homes until the late 1800s. Even today, there are still around\u00a0one billion\u00a0people around the world who live …<\/p>\n","protected":false},"author":1,"featured_media":2883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pgc_meta":"","_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[61,19],"tags":[],"aioseo_notices":[],"yoast_head":"\nWhat Are The Barriers to Widespread Cryptocurrency Adoption? - AtoZcrypto<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/atozcrypto.org\/what-are-the-barriers-to-widespread-cryptocurrency-adoption\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Are The Barriers to Widespread Cryptocurrency Adoption? - AtoZcrypto\" \/>\n<meta property=\"og:description\" content=\"9 Main Barriers to Widespread Cryptocurrency Adoption Like any nascent technology, cryptocurrency has to go through its paces before becoming widely used. 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