Despite the fact that many people view cryptocurrencies as investment vehicles, the idea was developed for a completely different purpose.
Contrary to TradFi, cryptocurrency aims to spread widely and promote financial inclusion.
Despite these roadblocks, it still has the potential to develop into a more reliable and sustainable source of financing.
The Real Goal of CryptoA popular approach for people to make quick money is to use bitcoin and other Ethereum-based currencies.
These assets, however, are extremely volatile and might see daily price increases or decreases of several percent without any apparent cause.
Bitcoin, once valued at over $69,000, is currently unable to credibly rise beyond $20,000.
For many people, that seems like a risky asset best used for speculation.
But it’s important to keep in mind the wider picture. The price of Bitcoin is but one small component of a much larger picture.
As more nations accept Bitcoin as legal tender, it has become a useful medium of exchange in places like El Salvador.
Although it may appear like a “far from my bed” show, it establishes an important standard for other nations to follow.
Similar actions may be implemented throughout the industrialized world during the next years, albeit it may not happen immediately.
There are many reasons for governments to fully accept cryptocurrencies. Cryptocurrencies can be used without obtaining authorization, in contrast to traditional money, banks, and other financial institutions.
Instead, they are accessible to anyone and can be used and treated like money. It is a huge benefit to consumers and businesses alike and lays the path for a sustainable, level-playing field global economy.
A Difficult Path to ProgressAs could be expected, cryptocurrencies have had a difficult time finding widespread acceptance.
The legal currency status in El Salvador and the Central African Republic is the product of the relentless efforts of a global network of supporters and users, despite the fact that there is no “big” popular use of cryptocurrencies.
Nevertheless, those triumphs only happened after a great deal of failures, skepticism, FUD efforts, misinformation, etc.
Important problems affecting the sector now include:
- Steep learning curve: understanding bitcoins requires some technical expertise. They don’t require any special skills to use, just the right software and a mechanism to buy or convert between fiat and cryptocurrency
- Regulation (or lack thereof): Since most nations don’t have laws governing cryptocurrencies, they appear less reliable. Regulated nations either practically forbid them or have an extremely tolerant population. A comprehensive legal framework is desperately needed, yet none currently exists.
- Volatility: It is highly challenging to consider cryptocurrency to be “stable” due to fluctuating market prices. When an asset’s value may change by 20% in just a few hours, there will always be some cause for concern.
Intelligent people might view these problems as significant obstacles that the industry must overcome.
Crypto Platforms Overcoming Limits for Mass Adoption
Thankfully, a number of businesses have demonstrated strong tenacity in overcoming these difficulties.
For instance, Scrypto, a new asset-oriented programming language, was created by Radix, a project that aims to unleash DeFi’s full potential.
It greatly simplifies the lives of developers, resulting in a wider development focus and more solutions, products, and services.
Additionally, Radix offers limitless scalability thanks to its Cerberus consensus mechanism, a crucial component in an effort to attain widespread acceptance.
One of the major challenges is still getting people to into the cryptosphere.
Applications with “earn” mechanics, such as Walken and its play & exercise paradigm, might act as important entry points in this regard.
People can readily adopt this paradigm as a means of achieving health, and they benefit from doing so.
The idea still appeals to individuals with over 1 million users, 13% of whom have never used cryptocurrency.
Additionally, since there are no up-front investment charges, volatility and regulatory worries are eliminated.
Businesses and brands should focus more on cryptocurrency and its technology stack, looking beyond consumers.
For many companies, making the switch from Web2 to Web3 will be vital.
Snook is an excellent illustration of how teams can quickly embrace user value and the technology that would enable that transformation currently exists.
Through BBT-themed rooms, Snook’s novel solution enables the growth of communities and creates a practically plug-and-play method of involving community members while offering value and fun.
Adoption by the general public will happen naturally once individuals are no longer required to consider utilizing specialized software to interact with cryptocurrency and blockchain.
Despite the industry’s current obstacles, advancements have been made, and new initiatives are in the works.
The question of when crypto will become a part of everyone’s daily lives is more important than “if.”
