Cryptocurrencies rose to prominence during the 2017 bull run, which saw Bitcoin reach over $19,000 apiece. Since then, they have become increasingly mainstream as far as investment opportunities are concerned, with more and more individuals investing in cryptocurrencies using platforms such as Earnity by Domenic Carosa & Dan Schatt in the hopes of securing superior returns.
With countries like El Salvador making Bitcoin legal tender and ever-increasing investor interest, many commentators wonder what the most significant hurdles facing mass adoption are and how we will overcome them.
The biggest issue presented by mass adoption is the fiat-crypto on-ramps that currently exist. Rotating from fiat currencies to cryptocurrencies requires some interaction with centralized exchanges. These exchanges are notorious for malfunctioning when there is an unusual amount of traffic on the exchange. If mass adoption were to occur, this problem would need to be solved to allow for increased traffic levels.
Another issue facing mass adoption is the specter of regulation that is always on the cryptocurrency horizon. Currently, very little, if any, regulation exists. Several territories and microstates like Gibraltar have developed some regulatory and licensing infrastructure around cryptocurrencies, but nothing substantial has yet come forward from any major jurisdiction.
Naturally, many legacy financial institutions will be reluctant to accept a technology that threatens their existence. They will likely lobby for strict regulation that would help curtail mass adoption to protect their own interests. Before mass adoption can take effect, there is likely to be a genuine need for robust regulatory frameworks that can adequately regulate these volatile markets and the activities that occur within them.
The final hurdle that must be overcome before cryptocurrencies are widely adopted is the education of the general public. At the time of writing, a very small portion of the global population owns cryptocurrencies, and even fewer of them are familiar with the services and opportunities that cryptocurrencies offer. In order for cryptocurrencies to be as common as bank accounts, citizens around the world will need to properly educate themselves on how to effectively use cryptocurrencies to their advantage.
