People often feel like they are comfortable and don’t need new technology. That is the reason why most inventions were not welcomed with open arms, despite how great they were. From the telephone, the automobile, the press machine, steam engines, electricity, computers to the internet. People did not jump on the bandwagon immediately, they needed to first see the importance of these technologies.
Same way cryptocurrencies have gone through a series of strides and still have a long way to go. It’s inarguable that they possess great potential and could potentially change the economic sphere for good, but their adoption has been quite slow. Some of the reasons for this low adoption include the following.
For years, the issue of Bitcoin anonymity has been a cause for heated arguments. People claim that it is not as anonymous as its creators claim. Even though most cryptocurrencies claim to offer anonymity, none is 100% secure.
Also, scams, thefts, ties with the dark-web among other controversies have hindered the adoption of cryptocurrencies.
Links to criminal activities
At one point or another, we’ve all come across a story on the media or social media of how someone was ripped off or hacked. Most exchanges lack an insurance policy or at least any measures in place for punishing thieves or hackers.
ICOs scams are also on the rise, and it’s this powerful correlation with criminal activities that keep people away from cryptocurrencies.
Too many available options
Can you believe that today we have a total of 2000 cryptocurrencies in the market when did that even happen? Each coin has a specific purpose ranging from agriculture, manufacturing, music, to power and stability.
More cryptocurrencies are added to this list daily, which makes the beginners even more confused about the exact coins to invest in. therefore, people tend to stick to traditional currencies because they are easy to understand.
The issue of scalability
It is difficult to convince someone to invest in cryptocurrencies when some popular coins take about 10 minutes or more to clear a transaction. Before more people can adopt these coins, there is a critical need to sort the issue of scalability out.
Traditional currencies have a simplified system and take quite some time before their prices fluctuate. Cryptocurrencies are different in that their prices differ way too often and far too much. If today you decided to hold on to your cryptocurrencies for a few days, be sure that you will make losses to the tune of hundreds or even thousands of dollars.
If the volatility of cryptocurrencies was to be eliminated in some way today or even reduced, more people would adopt cryptocurrencies.
-Lack of a sustainable mining structure
-Absence in regulation
-Cryptocurrencies are not easy to use
-Absence of clarity
-Hacks and thefts