Taking Crypto Adoption To The Levels of The Stock Market
The crypto revolution has been intensifying with each passing year. The number of blockchain wallets has now grown to 50 million, since the creation of Bitcoin in 2009. While the number is significant and might look encouraging at first glance, it rather urges us to deeply introspect.
It took a time period of more than a decade, outstretched in every aspect, to reach this figure. The situation becomes a bit more alarming since the figure of 50 million necessarily does not imply 50 million unique users. Individuals holding more than 1 blockchain wallet, is a common scenario.
Adoption rate
While there are multiple factors surrounding this delayed milestone, a key factor remains in the unpopularity of cryptocurrencies when compared against traditional markets. If the cryptocurrencies had received a platform and exposure similar to the stock market, then the acceleration of crypto adoption would have been at an unimaginable level.
But why did cryptocurrencies not receive such popularity?
The fact that cryptocurrencies are decentralized digital assets kept governments and authorities at bay. Their inability, or reluctance in regulating and monitoring cryptocurrencies has been a prominent factor in cryptocurrencies receiving a general distrust since their inception.
But in reality, cryptocurrencies are supposed to be those very decentralized currency systems that will avoid a financial disaster like the market crash of 2008–09.
The journey of Bitcoin is an over-all parabolic curve, and I am not only referring to its price volatility. Bitcoin has had a series of ups and downs in its journey so far, experiencing a few goods, and some not so proud moments.
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Since Bitcoin is the poster child of cryptocurrencies, the widespread apprehensions surrounding it have now encompassed the complete industry. Questions surrounding Bitcoin being a Ponzi scheme, or a medium for money laundering have long been a mark on the legitimacy of all cryptocurrencies.
However, to the utter horrors of naysayers, Bitcoin has successfully established that it is not a Ponzi scheme, but a legitimate currency system.
The cryptocurrency industry is still not easily accessible. Though there are multiple exchanges facilitating crypto trading, their number is nothing against the conventional exchanges dealing in equities and other capital instruments.
In a recent survey by Statista on the favorite investment route for Americans, 4% of respondents reported that they preferred cryptocurrencies. On the flip side, a whopping 28% of respondents preferred investing in the stock market. The stark difference between the adoption level of cryptocurrencies and equities is quite apparent here. The intensity of the situation lies in the fact that the country in consideration is the USA, one of the leading economies of the world.
(Source: Stock Market is America’s favorite investment)
Now, how can we amplify the status of cryptocurrencies and take it to the level of the stock market? Here, the answer lies in the question itself.
Replicate the Environment
The cryptocurrency industry needs to be expanded, to levels of the stock markets. And a good way would be to replicate the environment that the stock market enjoys. Let’s check out a few ways how that can be achieved:
#1 Exchanges
The first step would be to have cryptocurrencies made available at leading exchanges that are dealing with equities. The availability of cryptocurrencies at top exchanges would help in an appropriate representation of crypto assets at the highest level. This would also make cryptocurrencies to become far more accessible to the top players of the stock market.
Plus, the easy accessibility of cryptocurrencies at the same place with equities will further motivate the speculators to take part in the crypto trade.
#2 Funds
Globally, the total assets managed by crypto hedge funds increased from US$1 billion in 2018 to over US$2 billion in 2019. This was a refreshing jump, but cryptocurrency funds have a long road ahead. We require more funds that are ready for investors at the time of their fund allotment.
Mutual fund managers should also include cryptocurrencies in their portfolio. This will further aid them in testing the viability of crypto assets to be a permanent member of their portfolio.
#3 Influencers
The role of the crypto enthusiasts is paramount here. If you strongly believe in the power of cryptocurrencies, then you should recommend them to your followers. The big wall street giants, serial investors, fund managers, and other such celebrated individuals who have themselves invested in the cryptocurrencies, need to share their lessons and tips learned to their followers.
If you still do not enjoy any following, but you have individuals who rely on you for financial advice, then you can still do your part. Share your crypto investment stories and strategies with them. The crypto world needs such flag bearers like you.
Thoughts to Ponder
Honestly, taking the cryptocurrencies to the levels of the stock market sounds thrilling. A much wider crypto community, with every member enjoying the benefits of a decentralized currency, looks exciting at the first thought.
But, the fact that if cryptocurrencies are expanded to the size of the stock market, then the system will surely face a lot of resistance from the governments. The cryptocurrencies might get subjected to certain boundaries through laws and regulations. These boundaries might breach the essence of the reason why cryptocurrencies were created in the first case.
The cryptocurrency community needs to steadfastly brace times like these. It’s time to make the vision of Satoshi Nakamoto a beautiful reality.
Exciting times ahead!
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