Cryptocurrencies have been around for awhile now, after reaching the major breakthrough with Bitcoin and now having blockchain technology being integrated into far more than simply financial transactions, the future looks bright. The question is how soon will the whole world and the whole financial economy integrate with cryptocurrency? Or and perhaps more pertinently, when will you be able to pay for your groceries with your favourite crypto token?
There are a couple of hurdles standing in the way of Bitcoin becoming the payment method of choice for all financial transactions, one of the main ones is the ease of use and how easily it is for non-technically savvy individuals to grasp the concept of cryptocurrency. Although this might seem as if it will take ages to sort this problem out, it is important to bear in mind that in the early years of the internet and technological devices such as computers, these were originally viewed as the sole domain of those with advanced need for them. Yet, today we know and love the fact that they have become practically ubiquitous.
Unfortunately, a much greater obstacle for cryptocurrency to surmount is the fact that in the eyes of many members of the public, cryptocurrencies are not a credible alternative to the current financial system. This is mainly due to the fact that there have been fraudulent activities enacted against cryptocurrency users, CiperTrace has stated that there was a grand total of $1.2 billion lost to malicious acts. This helps to fuel the perception that cryptocurrency is not a safe way to interact not only with businesses, but with other individuals.
Another obstacle cryptocurrency faces is something more psychological in nature; many users find it inherently terrifying that they are now wholly accountable for their financial actions and that they have little to no method of assistance in the event of an emergency with cryptocurrency. This is in stark contrast to the traditional finance sector, where should you accidentally execute a payment or lose an important piece of information, you can simply contact your friendly banking agent. However, this is changing as more people gain experience with cryptocurrencies and especially with the rise in applications allowing for self-management of finances.
One of the most promising indications that cryptocurrency is on the rise has been discussed by the CEO of Coinbase, Brian Armstrong, who stated that cryptocurrency’s main new advantage is the rise of stablecoins. These ‘stablecoins’ are being headed up as the current price leaders for other coins and helping to bring a much needed sense of perspective to cryptocurrency trends. A further aspect in favour of the rise of cryptocurrency to the mass market is the innate ability of crypto tokens to be taken to scale regardless of physical location, which is a major advantage over traditional methods of payment.
All in all, it seems that cryptocurrency is on the up, however there are still obstacles that must be dealt with before it can become global. Which cryptocurrency do you think will be the first to take lead position in the mass market?
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