The cryptocurrency market is has seen good days in 2019 and technical pointers indicate a brighter future for the industry. However, Adoption is the one challenge cryptocurrency has not been able to surmount in the ten years of its existence. A number of major influencers in the cryptocurrency industry have expressed their views on why cryptocurrencies are seeing very slow adoption.
CEO of ShapeShift Erik Vorhees says the major challenge facing crypto adoption is regulation. While regulation is one of the factors that are key in driving institutional investors to the industry, it has not been handled well, hence the delay in institutional adoption, according to Vorhees. Individuals have shown significant interest in cryptocurrency and a significant number of them are using it, but the lack of clarity concerning the status of cryptocurrencies is a challenge holding institutions back.
Another major player Tyler Spalding, the CEO of Flexa thinks price speculation is the major challenge facing crypto adoption. This could be one of the reasons the SEC is delaying ETF approval for both Bitwise and VanEck. Recently, an Economics professor Steve Hanks described the lead cryptocurrency, Bitcoin as a highly speculative asset. This is the view of millions who still see cryptocurrency as being purely speculative with no clear direction. According to Spalding, cryptocurrency must be used to build useful projects for the common people if it will see any major adoption.
Other factors cited as hindrances to the massive adoption of cryptocurrency include lack of appreciation for the digital asset at this time, according to Tone Vays. In his view, people are yet to see the need to use cryptocurrency but no obvious barrier is standing against adoption. Once people start to use it to solve real problems then adoption will increase. Tron CEO Justin Sun in a similar fashion said the user experience for crypto needs to improve, as most users currently find it difficult to use it.
It has started, though
Although adoption is still at a very low level, several indicators suggest the industry, particularly Bitcoin, is seeing wider adoption and acceptance worldwide. For instance, LongHash data shows an increase in the number of confirmed Bitcoin transactions in 2019 and more merchants are accepting it for payment on varying skills. With this and the coming institutional investors who are expected in the industry when the SEC eventually approves ETFs, cryptocurrency adoption is likely going to see the adoption it needs to become a mainstream industry.