Crypto has come a long way since the Bitcoin white paper was released over 10 years ago. At the end of 2021, the market capitalization of all cryptocurrencies had reached $3 trillion. Even so, it seems that the world is not yet ready for the mass adoption of the new financial system. Earnity, a social-first crypto platform and marketplace, explores the factors that hinder crypto from reaching mainstream status.
Lack of Regulation
Current regulations may be the most significant hurdle for crypto and blockchain innovators because existing regulations favor traditional financial systems more highly and protect the consumers and market. However, more governments have begun to ease up on the regulations and have supported the implementation of blockchain technology. For instance, China has launched e-CNY, a digital version of its currency Yuan. When more countries start implementing crypto-friendly regulations, it should be expected that a larger number of people and businesses will start adopting cryptocurrency.
Lack of Education
There is still a general lack of knowledge on how cryptocurrencies work. Some people cannot differentiate between crypto and blockchain. Learning about these concepts may take a long time because they involve a steep learning curve. In addition, the fear of adopting a complex financial system can deter most people from getting into the space. For mass adoption to happen, it is essential to have a full understanding of crypto and the mechanisms behind it. Platforms like Earnity look to help users by making crypto simple and approachable and creating a community where they can find help from other users.
Lack of Fiat to Crypto On-Ramps
Most people use fiat or traditional financial systems. However, transitioning from fiat to cryptocurrency necessitates interacting with centralized and regulated bodies, like AML and KYC, which is a huge impediment to more users adopting cryptocurrency. Also, when it comes to digital currencies, banks are generally on the defensive and would rather still use conventional financial systems.