Cryptocurrency’s Pathway to the Mainstream
If we take a hard look at cryptocurrency as an actual currency as opposed to an asset (beyond trading and speculation), cryptocurrency has one focal mainstream use case. It is an online digital currency which can be easily and reliably sent from one person to another in a relatively short period of time. When analyzing cryptocurrencies through this lens, it looks very similar to another very profitable business sector — money transfers.
There are few incredibly large companies who perform this service, and whose entire business strategy revolves around taking fiat currency and digitally transferring it from one place to another while taking a transaction fee for themselves. These companies offer different options in terms of the speed and size to complete a transfer. Average transaction fees for these services can cost anywhere between $5-$40, depending on the amount a customer wishes to transfer (the higher the amount, the higher the fee), and the amount that a customer can send per transaction is capped. Additionally, a customer is only able to receive money from physical store locations. If there is no store near you, you’re out of luck.
Cryptocurrencies, by contrast, are much cheaper to transfer. Instead of paying between $5-$40, the average transaction fee on the Ethereum network is roughly $0.12, and for the Bitcoin network, it’s roughly $0.54. There are no limits to the amount of cryptocurrency that can be transferred, and the fee remains the same regardless of the amount being transferred. The transaction speed for cryptocurrencies varies from anywhere between a few minutes to around an hour (which is still significantly shorter than digital fiat transfers which can take days at the high end), and the currency is deposited directly to the user’s wallet, where ever s/she may be located.
With more and more stores, vendors, and shops accepting cryptocurrencies, as well as the quick global expansion of crypto ATMs, the landscape is perfect for the expansion of cryptocurrency since it’s clear that there is already a huge market for these types of transactions.
While we in the crypto community await the greatly anticipated benchmarks for mass adoption of blockchain and cryptocurrency (fast, free, and easy-to-use), it’s important to understand where we stand today. Many individuals within the crypto community don’t see real, mainstream, commercial viability until blockchain technology is able to evolve. The reality is that if more people understood the ramifications of blockchain and cryptocurrencies within the areas they’re already utilizing, it would spark an incredible shift towards decentralization within these specific sectors. Cryptocurrency would enable them to perform the exact same transactions at a fraction of the cost.
These realizations underline the most significant barrier preventing blockchain and cryptocurrency from entering the mainstream. It’s not transactions per second, transaction fees, or problems surrounding mining; the biggest issue preventing a much more significant adoption of cryptocurrencies (or to put it a different way, the reason why the companies mentioned above still have customers), is the current cryptocurrency user experience. The current process is far too complicated and far too difficult for the average person to utilize. It needs to be intuitive and simplified so that the average person can do it on their own without needing any training.
Making the process of sending cryptocurrency easier and more reliable is the pathway to mainstream appeal. The goal for SIRIN LABS has always been to develop a simple, secure, easy-to-use, and intuitive blockchain and cryptocurrency experience, and we’re accomplishing that with FINNEY™.