Why Aren’t More People Investing in Blockchain?

FST Network
FST Network
4 min readAug 1, 2018

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It’s no secret that blockchain technology is one of the most revolutionary innovations of our lifetime. The potential rooted in blockchain in terms of the number of industries it can disrupt and all of the problems it can solve is enormous.

Yet, relative to other industries, not that many people are active in the blockchain community at the moment, whether through trading or learning about the landscape more generally. Without mainstream adoption of blockchain technology, the landscape will be unable to achieve its full potential, and could run the risk of remaining a novelty as opposed to attaining global acceptance. There are many factors that contribute to this issue, but here are a handful of them that stand out the most and how to solve them.

Market Volatility

One of the primary reasons more people don’t get involved in blockchain is the unpredictable, volatile nature of the market as a whole. The value of a coin could be $1,000 one day, and drop to $400 the next day. This certainly doesn’t put the minds of potential traders at ease when they are considering investing their hard-earned money into cryptocurrency. That being said, the issue here is more of a catch-22 than it is anything else because the low liquidity of the market as a whole which is causing this problem actually stems from a low number of individuals buying and selling in a marketplace. When an industry has a low volume of buyers and sellers, one event could cause the value to drastically rise or fall without warning. For example, a single Tweet from a well-known blockchain influencer could make the value of a coin drop significantly.

The way to solve the volatility of cryptocurrency is simple: get more people buying and selling within the space, including large scale institutions such as hedge funds or investment banks. That is one of the problems we’re helping to solve here at FundersToken. By enabling individuals and businesses to become tokenized on the Ethereum blockchain, regardless of whether or not they can effectively code, we are ramping up mainstream adoption of blockchain as a whole. In turn, this will help solve the liquidity problem so common in cryptocurrency.

A Lack of Understanding

Another contributing factor to the low number of people being active in the blockchain ecosystem is simply a lack of understanding of the space in general. This is understandable given how technical and engineering-focused the landscape currently is. If we were to speak in terms common to the business world, we could say blockchain isn’t that “user-friendly”. For those who aren’t as technically proficient as the next person, the underlying concept of intangible assets holding value can be pretty difficult to effectively explain.

If you are interested in learning the in’s and out’s of blockchain, check out Coindesk for a number of digestible guides on the industry as well as daily news related to the field. Once you get acquainted with the basic concepts and can speak the “language” of blockchain, comprehending even the most complex topics will be quite easy.

Not Seeing The Value In Learning About It

Another contributing factor to the low number of people involved in blockchain is them not seeing the true value of the technology. While this certainly ties in with having a general lack of knowledge of the industry as discussed in the point above, there are a couple of compelling reasons why the blockchain ecosystem will benefit entrepreneurs and professionals. The first is that it will cut out the middlemen who come in between you and your customers, resulting in lower trading fees.

The second is that being tokenized also caters to consumer psychology because it makes your customers feel like they are a part of a dynamic community tied to your brand as opposed to only buying your goods and services. By having a specific token your customers can use to purchase your various products, they are much more likely to become loyal to your brand, increasing the lifetime value of that customer.

The High Cost and Difficulty of Tokenization

As it currently stands, becoming a tokenized business is an extremely difficult endeavor both logistically and financially. Hiring a programmer to develop smart contracts to be used on the Ethereum blockchain alone can cost your business tens of thousands of dollars to complete. On top of that, because the technology is so new, it’s tough to differentiate between amateur developers and competent ones, so there’s no guarantee your smart contract will come out operating the way you would have liked it to in the first place.

There is a large amount of hurdles that have hindered a rapid and widespread adoption of blockchain technology. From a lack of knowledge to the exclusive nature of the industry to the market’s volatility, we are far from where we want to be as a community. Here at FundersToken, we are determined to help expedite this process by simplifying the entire process of tokenization, campaign management, marketing your coin and much more. With our suite of modularized products, our platform makes becoming active within the blockchain ecosystem more seamless than ever before.

If you would like to start reaping all the benefits the blockchain has for your business, visit us at www.fstk.io today.

FundersToken: DIY your SMART TOKEN, TOKEN WITH LOGIC

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Originally published at www.fstk.io.

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FST Network
FST Network

FST Network simplifies IAM and CRM with de-identification protection, trackable record, and predictive maintenance.