The Single Biggest Problem Plaguing Crypto Adoption
Though this growth is promising, we have some ways to go before digital assets can be considered “mainstream.” And as an alternative form of money, digital assets must provide alternative value offerings to our legacy systems in order to have value in itself. Even as the balance tilts toward adoption, only 10% of us understand
the capabilities, and limitations, of cryptocurrencies.
Adoption lag in digital assets is a human problem.
We’re still in the early stages of the technology, and it’s natural to be skeptical of things we don’t fully understand (remember the Y2K scare
?). But, this situation is even more pressing because many of us are more skeptical of the current financial system
. It sometimes seems like the incumbent financial players’ interests go against their consumer’s
best interests. Not to mention, the current system is still plagued by the same technological problems, especially security — the Equifax payout of $700M
is a great example.
It’s clear we need to move beyond the limitations of our ailing financial system.
And the remedy is digital assets.
Though there are still some glitches we need to fix, the race is underway… and we’re making headway every day. Developers, affluent individuals and large institutions are actively trying to solve these issues:
- Though there are many ways to solve the scalability dilemma, we still need industry-wide consensus in order to put this issue to bed once and for all.
- The influx of institutional capital is helping combat volatility by bringing more trade volume, asset holders and a more pragmatic approach to investing.
Usability & Accessibility Usability is a design problem, which, with the right focus, will self-correct.
Consumer Protection & Privacy Consumer protection (read: anonymity and encryption) is central to the founding mission of digital assets—and the perfect remedy to bank’s security issues.
OversightGovernments are beginning to seriously address regulation for the first time—and oversight is becoming a rallying cry for more and more industry insiders.
But Trust Is The Principal Problem Stalling Adoption
An idea cannot live unless people believe in it.
But as old-world mainstays are slowly being dismantled, the digital assets sector moves forward….
And digital assets will combat most, if not all, of the problems plaguing our current financial system. Thanks to the blockchain, trust is no longer required of parties banking on the decentralized ledger technology (DLT). The transparency that comes with DLT will make us all masters of our own money. And the removal of barriers to entry fortified by our financial incumbents — such as Bank of America, whose free, “no-minimum” account requires
a $1,500 daily balance or $3,000 a year in direct deposit — will promote inclusion for the 8.4 million unbanked households in America
To spark adoption, we need to bolster our understanding of, and trust in, digital assets. As a society, we need to wrap our heads around digital assets and the revolution that’s underway.
Adoption Lag Is A Human Problem
So we need to decide: can we turn a blind eye to the misdeeds perpetrated by the current financial systems?
Anything that brings stability, trust and access to our global economy is a victory. And digital assets could bring just this… if we’re able to solve our own “crypto-ceptual” problems.
We need to take this into our own hands before Big Tech sinks its FANGs into crypto
, and the incumbent system places us into yet another financial stranglehold.
This article was written on behalf of Arca, an institutional grade financial services firm building products utilizing and investing in digital assets. I do not hold a position in Arca and write on a freelance basis for them.
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