July 19, 2024

Mass Adoption of Cryptocurrencies and the Associated Roadblocks

Bitcoin was launched ten years back but to date, the crypto space couldn’t gather the momentum it should be having. There are multiple factors that can be termed as a reason for stopping. Government non-cooperation, scamming projects, and lack of utility are some of the prominent reasons that prevent the mass adoption of cryptocurrencies in the mainstream.

In this blog, we will be discussing all those potential reasons that are hindering the mass adoption phenomenon.

Roadblocks in the Mass Adoption of Cryptocurrencies

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Volatility

It is one such factor that even affects the mind of the true believer of blockchain-backed cryptocurrencies. The cryptocurrency prices are too volatile in nature thus in order to enable day-to-day transactions like physical money which is FIAT makes it really unthinkable prospect in order to replace the present dough (hard cash) system.

Highly Manipulative Nature

There are manipulating factors like influencers, companies, Financial Institutions, and some academic stalwarts as well. With other forms of financial instruments like commodities, Forex, and metals the level of manipulation are somehow within the boundaries. But with cryptocurrency, it is simply unimaginable.

There are coins in the market that got appreciated in the value of up to 9000 % within a single day but the converse is also true. Appreciation is a welcome move by everyone holding a particular coin (s) but depreciation is a point that nobody wants to entertain.

No Intrinsic Value

Unlike real-world products, most of the blockchain-backed cryptocurrency projects lie in this category as they do not offer any project with a real utility that can people absorb in their day-to-day life. Without a real use case, it’s hard for people to understand the value addition being made by crypto coins.

Legal Issues

A lot of countries currently discouraging the cryptocurrency concept as they fear it will give rise to an unregulated space involving financial activities that is beyond the control of the government. So, they are simply either penalizing or curbing the operators and providers on local levels thus curbing the Crypto enthusiasm and mass adoption of cryptocurrencies.

Hard to Understand and Operate

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Unlike fiats and other modes of our regular transactions, cryptocurrency is not that easy to use. Instead of any bank account number or account IDs the whole blockchain concept runs on ‘cryptographic addresses’ where the recognition of account owner cannot be done by any means.

Though there is transparency between the transactions as it can be accessible by the open public for the creation and operation of such accounts considerably good understanding of technology is required. The sending and receiving process is pretty technical and even a single mistake can lead to a permanent fund loss.

Comparatively Slower Transaction Rate

The current transaction systems enabled by various payment networks like SWIFT, VISA, MasterCard, and PayPal offer a pretty fast transaction rate which takes several seconds to happen. On the other hand, with cryptocurrency, it is still a dream as to date only a few blockchain networks like Ripple and Ethereum can handle the fastest transactions between two parties.

Unprotected

Unlike current banking practices, cryptocurrency transactions are not guaranteed in case of any fund loss due to the wrong address or inappropriate data entry. In the case of banks, you can talk to a bank and get your transferred amount back almost every single time but in the case of cryptocurrencies, no such facility can be provided.

In fact, it’s one of those major points that actually haunts people with zero to no technical knowledge. During the transaction period, displacement of even a single digit/ symbol/ alphabet can cause trouble for you and your friends both and may result in permanent fund loss. Apart from that, we hear a lot of exchange hacking and scamming activities as well that discourage the mass adoption of cryptocurrencies.

Spending Options

Mass adoption of cryptocurrencies and the Roadblocks

It is one such thing that really raises the question of the mass adoption of cryptocurrencies. In our day-to-day life, most people used cryptocurrencies to hold and gain some profit over a fixed time either in the short term (through trading activities) or the long term (through investment vehicles).

Apart from that some of the major names across the world offering assistance in cryptocurrency payment mode (like Bitcoin and Ethereum) are very limited in nature. The recent market shot down discouraged even some of the blockchain believer companies as well.

Additionally, people having various popular cryptocurrencies like BTC, Ripple, Monero, and Stellar struggle when they need someone whom they can pay in terms of Crypto coins and arrange physical goods in return.

Psychological Fear

It’s human nature when something new (and revolutionary) hits the market most of people are reluctant to give it even a try. They fear they are going to lose something or even more as there are trust issues.

For example- the same happened with the ‘Internet’ as well. In the late 20th century, people were simply hesitant to try something that can be risking their funds over something that is reliable. It should be coming with customer support in case of any failure or theft. Apart from that, the recent Toppling of the cryptocurrency market further aggravated the fear of people for digital assets.

Bad Marketing and Anti-lobbying by Financial Giants

Perhaps one of the biggest reasons that stop common people to enter in cryptocurrency space and thus preventing mass adoption of cryptocurrencies. The financial Giants like banks, NBFCs, traditional equity, and commodity operators play a major role here.

There were various instances when a lot of them openly criticized cryptocurrencies and declared it a fraud scheme where people will lose their money at a point in time and they won’t have any control over it.

A single statement from them was able to slash the prices of digital currencies anywhere around 5 to 8% easily. This drop is very normal for people active in crypto space but this size of the drop is pretty considerable in the share market.

It has also been seen that some of these companies also use this agenda to buy cheap bitcoins in order to create a large pile of it due to the limited nature and very rewarding future prospects of Bitcoin holders.

Experience of Investors

Inexperienced and newbie traders are the one who books serious losses and after losing their hard-earned money multiple times they start simply bashing the whole cryptocurrency thing. But the reality is it is their inexperience and greed that makes them REKT but not the Crypto coins.

Apart from that, due to the unregulated nature of the Crypto space, a lot of HYIP and scams are prevalent in the market running away with the fund of people overnight after operating for some weeks or sometimes even months. Bitconnect is possibly the biggest scam in the history of cryptocurrencies.

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