Cryptocurrency has progressed a huge amount since the early days, and whilst there are still some question marks around the future of crypto as a whole, many answers are starting to be found too. These challenges may still be holding crypto back from mainstream use, however, and with the hope for many supporters being a decentralized currency that could be used for everyday use, which roadblocks are still in place and which features have continued to push crypto forward?
The Growth of Cryptocurrency
Cryptocurrencies have undeniably grown in popularity over the last decade. The original cryptocurrency, Bitcoin, has reached new all-time highs, and other cryptocurrencies such as Ethereum, Ripple, and Litecoin have grown in popularity. The rise of decentralised finance and NFTs highlights blockchain technology’s adaptability beyond digital currencies.
It has also been helpful that there are many markets that have emerged with a huge amount of support for cryptocurrency too, perhaps the most lucrative has been the big push for Bitcoin Casinos and other crypto casinos online with gaming being a huge market, and a great start for more legitimate use.
Acceptance by Major Companies
Tesla, PayPal, and Visa have all revealed their participation in the cryptocurrency market. This not only gives cryptocurrencies respectability, but it also opens the door to their practical usage in ordinary transactions. The acceptance of cryptocurrencies as a form of payment by some large entities makes the move to mainstream usage more likely.
Whilst some of this acceptance is limited, such as Tesla only accepting Dogecoin, it’s better than no acceptance at all, and does signal to others that there can be legitimate usage too.
The Rise of Stablecoins
Stablecoins are cryptocurrencies that are linked to a stable asset, such as the US dollar, to reduce the excessive price volatility that is prevalent with cryptocurrencies. These stablecoins serve as a link between the existing financial system and the world of cryptocurrency, allowing users to enter and exit the market without fear of value swings.
Whilst stablecoins typically hold a lower value than other big coins, the first step here is undoubtedly a stable and consistent price to allow for mainstream usage.
Regulatory Challenges
While crytpo growth appears to be encouraging, regulatory challenges loom big. Governments all around the world are debating how to govern this new asset class. Mainstream users who are concerned about the legal and tax ramifications of utilising cryptocurrencies may be hesitant due to regulatory uncertainty.
This has been very clear in Europe recently, regulation changes to be more cautious of fraud and other grey market usage for crypto has opened a wasps nest of issues, and with other factors requiring regulatory changes and challenges of their own with how crypto can be measured against FIAT currencies, there’s still a long way to go here.
Security Concerns
To safeguard the security of their digital assets, cryptocurrency users must be technologically knowledgeable. Hacks and scams are widespread in the cryptocurrency field, and investors must take extra care to safeguard their investments. Security concerns may hinder common users who are unsure of their capacity to protect their holdings.
Whilst this isn’t a major issue on its own, as scams for traditional currency still exist in a huge way, the institutions that would manage crypto and manage potential fraud aren’t sophisticated enough yet, and security concerns continue to be a cause for concern.
The possibility of cryptocurrency becoming a popular financial instrument is still being debated. While there has been significant growth, including institutional and corporate interest, the path to popular acceptance remains difficult. Regulatory barriers, price volatility, a lack of comprehension, security concerns, and environmental concerns all play a role in determining whether or not cryptocurrency will enter the mainstream.
