Adopting cryptocurrencies in everyday life is not scary or unusual. Figures shows that cryptocurrency users are growing at an annual rate of over 100%. This exceeds the adoption rate the internet saw in the 1990s and early 2000s. If this adoption slows to 80%, cryptocurrency will still reach 1 billion users by 2024. This means that 1 in 8 people on the planet will interact with or use cryptocurrencies in some way
People are increasingly accepting cryptocurrencies as an investment entity. They are also increasingly accepted by institutions, with Goldman becoming the first major U.S. bank to trade cryptocurrencies over the counter. Ray Dalioâs Bridgewater Associates also said it plans to back its first cryptocurrency fund. Cryptocurrencies are not just a method of payment, they provide a trustless, decentralized and fixed value transfer system. No reliance on any third party to ensure the functionality of the protocol, decentralized and immutable, proving that its value means more than just money and can represent many things, from a house to a piece of art to the right to own something. Cryptocurrencies (and new concepts like NFTs) are bringing different types of value to the world.
Barriers of crypto adoption
The average person with little or no knowledge canât fully understand the concept behind cryptocurrency and listed prices, how it works, or how it could fit into their lives. Associated with the fact that crypto is frequently linked with criminal enterprises, scams and extreme volatility, its easy to see why a lot of people are reluctant about adopting this technology. Some common barriers would include:
Unlimited Contradictions
Originally, crypto was created to promote decentralization, security, and anonymity in almost all transactions today. But, we have found out that itâs not quite as anonymous as most would like. In evidence, some cryptocurrencies offer true anonymity concept but they are not 100% secured. The crypto controversy is still rampant with scams, hacks and other misleading deals.
Fraudulent Activities
The media is filled with stories of crypto exchange which are being hacked and how investors are losing their funds completely. Since there is no insurance policy created in most of the exchanges or clear restrictions in place, your currency could be there one day and gone the next. Also, there are also other ICO scams that are happening on a far-too-frequent basis. While itâs not an immediate result of the technology itself, crypto does have a powerful connection with criminal activities and shady approaches.
Saturation
According to the surveys, it was suggested that there are over 2000 different types of cryptocurrencies in use, whose worth totaled $220 billion. Furthermore, each and every crypto type is being made for a specific purpose. Some are constructed for agriculture and manufacturing, some for music diffusion, and still others for power and stability valuations among crypto price alerts. Every day, more and more cryptocurrencies are adding info to the list which makes it difficult for an average person to learn and understand.
Volatility
Generally, some main digital currencies like U.S dollars fluctuate over time. Occasionally, itâs worth more and at the other time, itâs worthless, particularly, when converting into foreign currencies that are in flux themselves. Hence, the entire process is simplified. A dollar is a dollar and you donât relinquish money the longer you hold it. Thatâs not even true about most of the cryptocurrencies and crypto stock price. Their values fluctuate far too much, and far too often, to assist as a reliable digital currency. While holding up most of the cryptocurrencies for some days, you could lose your hundreds and even thousands of dollars at a time. Hence, the volatility in crypto prices should have to to be eliminated, or even lessened extensively before this currency is adopted by the mainstream.
Scalability
Scalability is another main barrier that throne in the developerâs side, and an incredibly prickly one at that. The Ethereum network can hold up to 15 transactions in a minute, bitcoinâs capacity is somewhere between 3â7 per second. We literally canât support the adoption of cryptocurrencies when it takes up to 10 minutes or more for a transaction to clear. Still, around 2 billion people are waiting for cryptocurrencies to come.
Regulatory Uncertainty
Uncertainty about how cryptocurrency regulation will roll out in the future remains a significant barrier for wider adoption of digital assets. Consumers being able to pay for products and services with crypto is seen by many in the industry as a path to wider acceptance of digital currencies. But one major reason more merchants arenât offering crypto as a payment method is regulatory uncertainty. The uncertainty would endure, as the creation of national legal frameworks for regulating crypto has been relatively slow and uneven.
How can communities help?
Communities are created to share ideas, to collaborate, and to enhance unity and solidarity. Passionate, excited or fearful about crypto, people feel compelled to share these sentiments with like-minded individuals. Cryptocurrency is a complex landscape very much still in its infant stages. Members of the crypto community â developers, writers, analysts and others â share the responsibility and desire to educate and inform those around them. As the technology is so nascent, so too is peopleâs knowledge around it. No one knows everything, and the constant sharing of knowledge is vital to the innovation and adoption of crypto. But communities arenât bound to geographical locations; online communities are made up of individuals with shared ideologies from all over the globe and this is vital in sharing the needed information to facilitate crypto adoption. Cryptocurrency is fundamentally based upon the concept of decentralization, and we can see this at the very core of crypto communities. The crypto community, in particular, is extremely discursive, making use of a number of online platforms like Reddit, Twitter and Telegram, among others, in order to understand what needs to be done to make the currency a success. Communities can facilitate crypto adoption in the following ways:
Cryptocurrency education
Crypto adoption is still largely driven by education, which is an essential component of creating an inclusive financial system. Communities will do well to educate members and prospective ones about the workings of crypto and itâs governing technology. Such educational avenues could be created through meet-ups, seminars, and conventions. Most communities look out for workshop opportunities to educate the audience about a specific crypto project. Online communities engage their members through AMAs, talks, video conferences and Twitter spaces.
Build trust and encourage involvement
Crypto communities should give members a sense of belonging or inclusivity while building trust with their plans and execution. This will give a sense of ownership of what the group is about or what it promotes. If you are part of a crypto community, in whichever social media platform it may be, thereâs a variety of people you may be communicating with. There may be newbies, exchange platform owners, traders, and investors, to name a few.
Provide a platform for effective communication
Through communities, people with the same interests can exchange their ideas and knowledge with members from different parts of the world. Having an online community helps crypto projects to be easily accessible to their users and clients. They can efficiently respond to any possible queries with a hired moderator, who answers every question concerning their services.
Provide limitless opportunities of earning money
When members are exposed to crypto, they may be curious about a specific cryptocurrency, a platform or an exchange, and products or services, to name a few, they will likely look for ways to to profit from it. Crypto projects should provide them with opportunities to make such profits. Whatever the reason may be, thereâs a possibility that these people will eventually use cryptocurrency in one way or another.
Facilitate communal support and engagement
The crypto space is evolving and these developments are endless. This is why most Projects utilize communities to announce product developments and launches, and respond to any possible concerns. A crypto community is not only for getting in touch for technical support but also for open communication where anyone can share their expertise and establish connections with their peers. A highly engaged community can also boost a projectâs potential to increase its userbase.
Modify user experience
Crypto projects should engage with the community members, collect feedback and acknowledge suggestions. Such service can translate into a first-class/first-rate user experience. Community members have diverse backgrounds and varying experiences, which can be considered in making new products or marketing techniques and approaches. Through communities a lasting and professional relationship can be built with members thus encouraging crypto adoption.
Communities have a lot of remarkable things to offer. The growing number of such groups has contributed significantly to the development and adoption of crypto. A community that is governed and run properly is never a bad idea.
If you are curious about crypto, joining a community of whatever crypto project or ecosystem can give you a proper idea about how things work and help you find great earning opportunities.
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