Cryptocurrency adoption; the advantages and the hurdles.

[abdullah553 1981]

On 10/25/2020 at 12:30 PM, Raqeebzy said:

      When (pseudonymous) Satoshi Nakamoto created bitcoin (which is considered the first cryptocurrency by the majority) in 2009 and presented (the white paper) to the public, there was whole lots of doubt on how a new system of completely decentralized digital currency based on 'mere' cryptographic proof would survive; can it be effective as the banking system (which is based completely on the trust of a third party)?. Several questions about the blockchain network and mechanism of operation of bitcoin (PoW) also popped up and presented to him. Although he (satoshi) tried to explain as much as possible, it was far from being totally convincing. Would bitcoin and blockchain technology be the key to financial breakthrough? Only time will tell.
 

Over the years
      Then (in the early days of bitcoin), the debate was based on its viability and survival considering previous similar centralized systems failures - doubt there was any speculation by anyone on if it would be widely accepted and recognized as a payment system or method. Well, maybe Mr. Nakamoto himself.

Few years after bitcoin had its value in 2010, perspectives changed (though, few investors still considered it a 'mere bubble') from being an untested/unrealistic project to prospective investments to many. As time progresses, adoption was growing organically, undeniably affected by several factors:

Decentralization as a major edge
      Rather than in a financial system, centrally controlled by a few groups of people or an institution and having a little control over personal funds, the decentralization of bitcoin and the privacy it brings provided a major headstart to its widening adoption. An opportunity to be the lone controller of one's savings isn't one that comes by often.
Satoshi was right all along - the centralization of previous similar systems was the main cause of their failures. The decentralization of the digital currency system was the key to financial freedom. 

 

Economy crises
      Venezuelans hit by hard-living conditions due to economic crisis and inflation have seen a haven in more 'investment reliable' bitcoin. Rather than holding the local currency, they would rather buy into bitcoin which saw the later hitting an all-time high trading volume in 2019 across the region.
      A survey carried out recently by Paxful shows more than 70% of participating Argentine believe cryptocurrency is a better investment and financial solution in the lingering economic crisis in the region. These and similar scenarios in other regions like Greece, Cyprus, and Zimbabwe have prompted the search for a solution to the financial crisis - in bitcoin. 
And relatively the bitcoin hasn't disappointed, becoming the top-performing assets over the last decade surpassing the stock market and US S&P 500. 

The lockdown effect
      Amidst lockdown and failing economies around the world as a result of a global health crisis, the cryptocurrency looks to be one of the biggest winners of it as its engagement multiplies rapidly in several folds across different regions. In those moments where contacts seems a lot risky, cryptocurrency was the perfect solution; transactions and payment of essential needs and services are done contactless without exposure to risks. It was also seen as an ideal source of income to already closed down businesses. 

 

Source: Chainalysis

India, Russia, the US, and Ukraine are among the top countries with increased crypto trading and investment as a result of the pandemic. 

Blockchain games
      Apart from finance, massive interest in blockchain technology has emerged from the gaming industry in recent times, directly contributing to cryptocurrency usage. One of the earliest blockchain games, CryptoKitties is built on the Ethereum blockchain. CryptoKitties uses ERC-721 standard Non-Fungible Token (NFT) the in-game currency in the purchasing of kitties contributing more than 10% congestion to the ETH blockchain network in its early days in 2017. 

Source: Kitty explorer

As of this time, over 680000CK  has been sold, worth more than 60000 ETH (Data : Kitty sales)
Apart from in-app purchases, some blockchain games provide tradable cryptos as rewards to gamers for completing gaming tasks.

 

The setbacks
      Though there are lots of positives, the cryptocurrency road to adoption hasn't been a smooth one with lots of downs and challenges. From technical (scalability and complexity), security (cyber-attacks, fraud, and irregularities) to governmental regional restrictions and heavy taxes; just to mention a few. 
 

How will cryptocurrency make use of the advantages and overcome the hurdles? Do you think there will ever be a global adoption? 
Share with us what you think.

I think that the idea of adopting encryption will be much better for people than paper currencies, and it will also provide many job opportunities and there will be a unified currency for the world in a whole.

[HadiLord 926]

Until now, there are still many obstacles to achieve this. The use of cryptocurrencies in illegal matters on Deep Web sites has a negative impact on the adoption of cryptocurrencies, in addition to the fact that governments are not able to directly control the cryptocurrencies or their prices.

[kion 381]

That is just how great inventions work, at the beginning, there use to be doubts ad to the credibility of such inventions, but at last, people will recognize there importance, this is just what the world needed, so all thanks to the inventor of cryptocurrecy.

[selfmade 7]

The disadvantage is big I would start with that, apart from scammers, creation of lazy people who stop doing real works and work all day on claiming faucets, not to mention gamblers. Cryptocurrencies would take down the world economy when it become a mainstream, that is why governments are trying to create their own coins to prevent this fall.

[joemcgwa 3227]

Cryptocurrency adoption has the advantage when its gives the opportunity to people to make some earnings in order to cover their needs, but its become hurdles when people are getting addicted into crypto and lead them to forget about doing the local jobs.

[Francy Mory 543]

I think that if there will be a global adoption of Cryptocurrencies, one proof is that countries with economic blockages and crises are seeing an alternative to have more secure money and it has given them results. Cryptocurrencies have gone from being an unknown currency to a popular currency throughout the world. It has evolved because they have seen profitability in the financial market.

[Nersreem 279]

Crypto is the best market and there are so many advantages of the crypto market and in this market we can send millions of dollars in just a low fee and in just a small time the millions of dollars coins will be send.

[piuri01 446]

I agree with your publication my brother, the advantages of cryptocurrencies are many because they help world trade and people have better income with them.