Cryptocurrency’s Brand Problem

Kaitlyn Barclay
Jul 27, 2017 · 4 min read

Cryptocurrency is a decentralized (ie. not managed by a bank) digital currency that uses cryptography to validate the authenticity of transactions made with the currency. It is an alternative to fiat currency, which is money managed by banks and adopted by governments.

Cryptocurrency is managed on a blockchain, a decentralized and digital ledger that records transactions made with units of cryptocurrency. Blockchain technology has many applications, but for the sake of this article I’ll only be referencing it as it relates to cryptocurrency.

There are plenty of reasons why cryptocurrency hasn’t become a widely adopted form of currency. The list includes cost volatility, regulatory restrictions, crazy fees to use an ATM and it’s still pretty challenging to pay rent with cryptocurrency (although doable!). While crypto-loyalists see it as the way of the future (*raises hand*), there is still fear, uncertainty and misinformation that will keep the mainstream consumer from trading in their fiat currency for its encrypted step sister. Among the reputational and functional issues, the main problem with cryptocurrency is its brand.

You may be thinking, “but isn’t a brand just a logo?” That answer is no (more thoughts on that here).

Source: Blockchain Technologies

Stability among cryptocurrencies is a chicken or the egg problem. Mainstream consumers fear the value fluctuation of cryptos like Bitcoin, but its value stability depends on widespread adoption. In his book The Business Blockchain, William Mougayar explains, “As cryptocurency gains more acceptance and understanding, its future will be less uncertain resulting in a more stable and gradual adoption curve.” What’s stalling cryptocurrencies network effect is an inherent brand problem. People trust fiat currency in its physical and digital form, but because of misaligned brand values and a lack of approachable education on the subject matter, cryptocurrency is too much of an unknown for sweeping acceptance.

As cryptocurrencies continue to be influenced heavily by hype and bad press, the perception from the weary consumer is that investing in cryptocurrency would be as strategic as betting on the long term value of a beanie baby. That needs to change.

Here’s where we begin cryptocurrencies rebrand:

1. Define early majority

Focus on who comes next after Early Adopters in the technology adoption lifecycle of cryptocurrencies. Is it an artisan who would benefit from cryptocurrencies low transaction fees, so that they might sell more of their work internationally? Is it a young freelancer who doesn’t trust banks and finds value in the trustless, decentralized system of a cryptocurrency’s blockchain?

How do we capture a larger group of society, like early internet browsers did in the late ‘90’s? Ease of access, simplicity and rudimentary technological education are a few ways browsers enabled curious early majority adopters to dial-up and log on to the Internet. The same equation can be applied to cryptocurrency adoption. Make digital asset exchange seamless and understandable, by first simplifying language and the path to participation. Use fundamental ideas consumers already understand, like money and transacting it through digital means (ie. credit cards, wire transfers, venmo). From there, use plain language to describe cryptocurrency’s differences and benefits.

2. Instill brand trust

Brand trust is major pillar to any successful emerging technology and it’s tantamount to the adoption of global currencies. After all, we’re all a part of a social contract that’s rooted in buy-in based on perceived value. The issue and opportunity with blockchain technologies is that there’s a dubious reputation from its cultural connection to the dark web, a digital geography that most do not readily access or quite frankly know about. For example, Darkcoin rebrand as Dash to avoid affiliation the dark web. As cryptocurrency adoption transcends past Silk Road and into Microsoft accounts, cryptocurrencies will need to continue expanding their use cases in order to continue building brand trust.

Think of cryptocurrencies as the access point to blockchain technology, as internet browsers are to the Internet. The majority of people that use Internet Browsers don’t understand how they work, but they do trust the technology to operate in a way that’s approachable and expected. Nexus, Internet Explorer and Chrome all have discernible brands (some better than others), and it’s their brand that converted Internet sceptics to Internet users. The same pattern holds through to cryptocurrencies. In order for large scale adoption, these new digital currencies must become approachable, friendly and simple to use.

3. Rebrand brand values

Encryption has a bad reputation. The public hears about encryption when information has been hacked, and the term is usually used alongside names like Julian Assange or the latest CIA contractor that’s leaked classified documents to the press. With that said, the value of encrypting data is all about preserving safety and privacy. Demystifying the role of encryption within currency will be key to making cryptocurrencies more approachable to consumers of Amazon, not just recreational users of Tor.

So, how do we rebrand cryptocurrencies for mass adoption? Focus on how it simplifies our existing process, saves money and does a world of social good.

Cryptocurrency is the Robin Hood answer to the existing global banking systems that employ high global transaction fees and limited cross-border banking relationships to strangle already struggling economies. Not only that, using cryptocurrency nearly removes risk of identity fraud and theft. Instead of being seen as a dark, unapproachable alternative to fiat currencies, cryptocurrencies need to celebrate the safety, utility and end-to-end savings that a decentralized digital currency offers a globalized world.

It starts with brand.

Kaitlyn Barclay

Written by

Story Teller, Story Listener, Circus Wannabe. Co-Founder of Scout Lab.

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