CryptopayAsks #5. Mainstream adoption of cryptocurrencies
Our #CryptopayAsks sessions continue with the new question. What do you think the biggest obstacle to mainstream adoption of cryptocurrencies is?
Cryptocurrencies have grown in popularity over the last year, mainly due to bitcoin’s unprecedented growth in autumn 2017. Every day there seems to appear a new altcoin, each one aiming to revolutionise blockchain and fix some specific issues that other currencies failed to resolve. But still, cryptos are far from being used in every shop.
So what are the main issues that hold cryptos back from getting adopted on a large scale? Let’s find out.
This is one of the biggest obstacles that prevents cryptocurrencies from mass adoption. Compared to fiat currencies, bitcoin is much more unstable which makes it more susceptible to speculations than real means of payments.
The same statement applies to all other cryptos.
Here’s what one of our followers says on this point:
Bitcoin popularity growth resulted in one of its biggest issues, the block scalability.
On the blockchain, every transaction is registered in every node, and the system cannot process more transactions than a single node. The more transactions occur at the same time, the longer it takes for each one to be verified, which in turn makes transaction fees higher.
Just compare the following numbers and see the difference. Bitcoin can only process ~3–7 transactions per second [Source: github.com/ethereum/wiki/wiki/Sharding-FAQ], Ethereum’s limits are a bit higher and make up ~7–15 transactions per second, while Visa processes an average of 150 million transactions each day, or around 1,667 transactions per second [Source: mybroadband.co.za].
The block size can be increased to solve this issue, but this is a double-edged sword. Big blocks can only be handled by supercomputers which leads to centralisation and therefore misses the entire point of the decentralised payment tool.
Lack of education
One more reason why bitcoin and other cryptos are still far from being widely used is a lack of education.
According to a survey conducted by Cobinhood in December 2017, when cryptocurrencies in general and Bitcoin in particular seemed to be one of the most popular topics of conversation, about half of respondents know what cryptocurrencies are, only 21% of them know where to buy them in the first place.
People may not understand how the blockchain technology works, why the block size matters or how new nodes are created, and still use cryptos. But unless they know where to get them, cryptocurrencies are not likely to be used for buying milk and cookies.
How Cryptopay facilitates mainstream cryptocurrency adoption
Here at Cryptopay, we can’t affect cryptocurrency price volatility anyhow, neither can we resolve the scalability issue. However, we do our best to help people use the advantages that cryptos offer in comparison with traditional means of payment.
With Cryptopay, you can store cryptos along with fiat currencies in one account. Once you pass the verification, which is typically a matter of a few hours, all you will need to do is to set up a strong password and enable 2-factor-authentication to protect your funds. After that, you can use cryptos together with traditional currencies at the same level of convenience.
Sign up and see how easy it is!