Although Bitcoin has been around for years, the digital currency has not had much success getting through the mainstream market.
However, the adoption of digital currencies is on the rise. Bitcoin has had better success as compared to other cryptocurrencies with giant worldwide sites such as eBay now accepting Bitcoin payments.
Bitcoin has almost always been on the rise, with notable bubbles in 2013 and 2017. These sudden rises raised new awareness, which then encouraged the adoption of the digital currency. However, Bitcoin and other cryptos are yet to gain global mass adoption.
Cryptocurrency surges have come and gone. However, it seems that this is what crypto enthusiasts and specialists have been waiting for. Could we be heading to the mass adoption of cryptocurrencies in the next few years?
What Needs to Happen for Mass Adoption?
It is without a doubt that blockchain technology is a transformational innovation that could lead to a revolution as big as the internet. Cryptocurrencies are blockchain’s first use case and are bound to be around for a while.
However, for there to be a mass crypto adoption, several factors need to come to play.
Compatibility of Cryptocurrencies and Fiat Money
The introduction of blockchain technology and cryptocurrencies challenged the existing centralized bank systems and fiat money. The exchange of fiat and cryptos is viable in many developed countries that are already at the forefront of mass adoption.
However, there lies great potential in developing countries. These regions have a large population of the unbanked, which makes it challenging to exchange fiat for cryptocurrency. Tapping into this market could help increase the use of cryptos in the developing world regions.
One way to do so is by introducing fiat systems that people are already familiar with the cryptocurrency world. Debit and credit cards are widely used with Visa and MasterCard services available globally. Blockard replicates this concept to cryptocurrencies by introducing a debit card that lets you store, send, and use your cryptos anywhere in the world where Visa is accepted.
One of the major factors that hinder the adoption of cryptocurrencies is price volatility. Cryptocurrencies are very volatile and may rise or drop in price within an instant. Although veteran digital investors may enjoy this, it is clear why a new investor would not want to take the risk.
Stable coins were introduced to counter this problem. These are digital coins that are pegged to a fiat’s price and acts as an intermediary trading token. While it is still not clear which stable currency is the best, they offer a solution for the volatility, which could encourage more investors to venture into digital assets.
Blockchain technology is a decentralized peer-to-peer network, and this component has always made the regulation of cryptocurrencies a contentious issue. Many countries, particularly in the west, have been a bit reluctant with the regulation of digital currencies. Some regulators do not understand the technology well enough to put in place suitable regulation laws.
Since 2018, crypto influencers began to advocate for self-regulation while working with authorities to develop standardized regulatory frameworks. Fostering healthier relationships between innovators and independent bodies establishes trust, which is essential for mass adoption. Government Blockchain Association is one such organization that seeks to achieve this healthy relationship.
There are still several factors that hinder the mass adoption of cryptocurrencies. However, the groundwork is already laid, and it is clear that large-scale use of cryptocurrencies is coming. Technology moves faster than we could anticipate, and we can be sure that cryptocurrencies will be mainstream in the next few years.