Cryptocurrencies are going to be the future of digital transactions. Even though many countries are trying to bring regulations and adopt cryptocurrencies, there are still many countries and governments who are fully against cryptocurrencies or they impose high taxes for using and transacting using Cryptocurrencies. This happens not only in developing nations but also in developed nations where people fear using cryptocurrencies against the government or following all the regulations the government has imposed.
Bitcoin is the first cryptocurrency in the world and it took a lot of time for people to accept that as a digital currency. Only a few people believed in Crypto back then and those who did hold their coins for several years have now reached financial independence and would have made a huge profit for holding. The same can happen for several other cryptocurrencies as well. When it comes to adoption, there are a few reasons why cryptocurrencies are not being adopted very wellCryptocurrencies are hard to adopt for some of the following reasons.
Concepts are a little hard to understand
I personally agree with this because I know how much time it took for me to understand the concepts and convince myself to make my first purchase. Even when I entered crypto, if I had held my BTC tight, I would have had the biggest advantage now. We know cryptocurrencies have been there for nearly a decade but for some people, it is still a new concept. Common people find it hard to understand the concepts and many people don't fully understand how it works. Trusting cryptocurrencies also becomes a big challenge because of this. People straight away say that it is not a trustable thing because they don't understand the concepts.
People scared about its volatile nature
Volatility is one of the base characteristics of cryptocurrencies. Comparing cryptocurrencies with FIAT, we can easily say that crypto is more volatile in nature than regular FIAT currencies. Some coins might have had a great value yesterday, but today, they might have a different value. If crypto has to be used as the source of payment, I believe it would take some more years to get implemented. There are many stable coins out there that look like they are not volatile but there have been cases in the past where even the stablecoins struggle to keep up with the price. Compared to the regular price of coins between one nation and the other, the value of cryptocurrencies is highly volatile and we cannot completely rely on the price for our transactions all the time. The value of cryptocurrencies can fluctuate to a greater extent within a short span of time, which can make them risky to use for both payments as well as investments.
People are concerned about the security aspects. Even though we know that transactions on a blockchain are more secure there other types of digital transactions, it is still hard to convince people. People still use Cryptocurrencies for gambling, ransomware, scams, and other unethical crimes which makes it hard to differentiate good use cases as well as bad use cases. When cryptocurrencies are used even for good things, people might be hesitant to invest. The decentralized nature of cryptocurrencies means that there is no central authority to regulate them, sometimes it can also be a big concern but when it comes to security, people still prefer this compared to having an insecure centralized alternative. Regulations can help in this which is going to be the next concern.
We all keep saying how important regulations are and why we need regulations for crypto-related things but Cryptocurrencies are not yet fully regulated in many countries, which can be very hard for businesses or individuals who would like to adopt them. Regulations are a very sensitive topic because, without regulations, businesses might find it very hard to comply with the government and run their business efficiently with clean paper works. There is a base fear in the mind of people that regulations are good but what if we miss something and we lose our money?
I would say that cryptocurrencies are not very friendly to all ordinary people. Cryptocurrencies require some level of technical knowledge to use and especially when it comes to storing the cryptocurrencies in a wallet or something, people have to be very careful. People constantly look for tools and resources to enhance their knowledge of cryptocurrencies and the technical changes that are happening and it is hard to keep them up to date. If people don't gain this basic level of technical knowledge, there is a high possibility that they would lose their keys and end up cursing cryptocurrenices and the technology behind this. I have seen this happening and some of my friends have expressed this.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.