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Here we will talk about “adoption”, the word, whose power should not be underestimated. As the time goes by, the success of many innovative technologies and products continues to depend on how well they are adopted by the wider market.
Bitcoin and other coins shook the world at the beginning of the 21st century and made it rethink its considerations of finance and technology. Yet, some continue to perceive them as individual currencies, while in reality the name “open finance platforms” fits them better. As stated by Bitcoin expert Andreas Antonopoulos, it is a whole new Internet of money, as opposed to just money for the Internet. At the moment, cryptocurrencies are living their early adoption and development stage, despite the fact that there have already been years since their introduction. In order for the adoption process to become more effective actions must be taken in four distinct, but interconnected sectors: Education, Application, Security and Regulation.
Lets start by talking about education. You might be surprised, but a significant part of world’s population has no clue about what Bitcoin or blockchain technology are and how they work. This is in fact a huge issue, as the majority of us would never invest into something we do not entirely understand, and especially into something that is not backed by any government or similar body of authority. It is rather difficult to understand the concept of Bitcoin or blockchain for a person that has zero tech knowledge. The existing stereotypes can only be eliminated through continuous effort from the side of those, who are already participating in the sector.
Continuing with application, it is important for people to understand the real-world use of blockchain and cryptocurrencies before they accept the concept. The industry must clearly convey how can the latter help individuals satisfy their daily needs and benefit from the use of the technology. Some technology platforms, such as Wirex and Cryptopay allow customers to use a debit card against the crypto holdings. However, the prices these platforms offer do not always reflect the real token/coin price. Besides, the platforms are under a high risk of attacks and hacks by cyber criminals. Another issue that exists concerns scaling. It is expected that the Lightning Network for Bitcoin will have a high processing power, yet it is still being developed and tested.
The security of funds is, perhaps, one of the biggest concerns surrounding blockchain. On the web one can find numerous negative stories related to people loosing their money due to Bitcoin investments. Skeptics still view cryptocurrencies as a tool for money launderers and criminals and encourage investors to perceive them with caution. Indeed, there have been cases when cryptocurrency exchanges were hacked, private keys were stolen and compromised and so on. However, the actual blockchains of Bitcoin and Ethereum have not been subject to anything similar. This is because it is impossible to hack a cryptocurrency, even though it is possible to steal personal details and access an individual’s wallet. Fears of the public must, therefore, be critically analyzed and eliminated with the help of substantial proof.
Lastly, in order to witness a successful adoption, we must put in place an effective and improved regulatory framework. It is commonly thought that the fluctuations in the cryptocurrencies’ prices can be mitigated through institutional involvement. Specific guidelines are to be established in the second half of 2019, and are projected to improve the climate in the industry. This will increase the legitimacy of blockchain in the public consciousness and positively influence the retail section of the market.
For what concerns prices, they are expected to increase at the moment when demand will become higher than the supply, which will bring great benefits to early investors. In any case, though, it is important that there is a stable infrastructure in place that will support the process of adoption, bringing the world closer in the challenge for a new financial ecosystem.