Will Crypto Ever Become a Currency of Mainstream

Consumer Confidence Shaping the Future Acceptance of Cryptocurrency

Cryptocurrency is one of the things that are seen as the future of finance in the next generation of the Internet. Today when majority of the cryptocurrencies are seen as nothing but investment assets, their use cases are rather shadowed. However, they were not designed solely as investment instruments but to revolutionize the financial space by offering complete ownership of your assets. In Bitcoin’s whitepaper, which became the foundation stone for other crypto projects, Satoshi Nakamoto mentions the intent behind the development of Bitcoin.

“We have proposed a system for electronic transactions without relying on trust. We started with the usual framework of coins made from digital signatures, which provides strong control of ownership, but is incomplete without a way to prevent double-spending.” wrote Satoshi Nakamoto. 

Today, as crypto is getting more and more popular and prevalent, we examine the reasons why it is still not the mainstream currency and why it deserves to be one. 

Hurdles in Bitcoin becoming the mainstream currency

Even though cryptocurrencies have gained massive popularity over time, their mass adoption is still awaited and there are some valid reasons behind it. Here are some of the key reasons that restrict Bitcoin and other cryptocurrencies from becoming the mainstream currency of our time. 

Volatility

The crypto market is considered one of the most volatile markets to invest in with most investors limiting their crypto exposure to reduce the risk. The unregulated movement of the assets and lack of any central authority to limit the risk associated with these investments make crypto a highly volatile space. 

Regulation Uncertainty

On one hand, governments around the world are coming together to collaborate and regulate blockchain-related financial products, on the other hand, government agencies are taking a dig into the crypto businesses without any specific rules to base their investigations on. The high uncertainty in Bitcoin’s regulatory space is one of the key hurdles in its mass adoption. 

Scalability Challenges

Today, if you want to transfer money from one bank account to another, it is almost instant and free. Even if you want to send the money overseas, there are services which get it done for you at a minimal price. Even though these services do not offer the same level of anonymity and universality and come with limitations, common masses are finding it much easier and cost-effective to opt for centralized services instead of Bitcoin blockchain to transfer money.

Bitcoin blockchain is highly congested and thus expensive to operate in. The scalability and adoption of the Bitcoin blockchain is a key concern that lays a long shadow on the advantages that Bitcoin has to offer. 

Adoption Barriers

Anyone can create a bank account online and if you cannot, an agent will come to your doorstep and get it done for you within minutes. This is the kind of service that centralized banking service providers are offering to users around the world. Getting into decentralized finance and Bitcoin space is painstakingly hard and requires adequate research and knowledge. 

Even though centralized exchanges are making it easier for users to buy their first cryptos, the use cases of individual cryptocurrencies are hardly ever utilized and the tokens are traded based on pure speculations. This not only price volatility but also leaves a negative impact on the industry’s image. 

Security Concerns

Bitcoin, while secure in its blockchain technology, faces security concerns including potential hacking of exchanges, wallet vulnerabilities, and the irreversibility of transactions, which can lead to loss of funds through fraud or theft. 

Additionally, its decentralized nature means there's no centralized authority to intervene in disputes or recover lost funds, making security practices like using strong, unique passwords and two-factor authentication crucial for users.

Why does Bitcoin deserve to be mainstream?

Despite all the drawbacks that Bitcoin users have to face, it is still valued as the currency of the future. Bitcoin’s rise is seen as highly inevitable 

Decentralization Strengthens Security

Bitcoin's decentralised nature, relying on a distributed ledger, enhances security by mitigating the risk of single-point failures, making it resilient against cyber threats and attacks.

Financial Inclusion

The first and foremost reason behind the development of Bitcoin was to empower the last man in the queue with the same financial accessibility as anyone else in the first world. Bitcoin's accessibility facilitates financial inclusion, offering a global, permissionless platform for those without access to traditional banking systems, empowering individuals to participate in the global economy.

Anti-Inflationary

With a capped supply of 21 million coins, Bitcoin provides a hedge against inflation, offering a reliable store of value amid economic uncertainties. When most of the currencies are prone to national inflation, Bitcoin ditches its possibility by limiting the number of total Bitcoins that can be mined, making them rare and more valuable instead of a deflationary asset as traditional currency. 

Borderless Transactions

Bitcoin enables seamless, borderless transactions, transcending geographical constraints and reducing reliance on traditional banking infrastructure. Transacting via Bitcoin also comes with total anonymity which no other technology has been able to replicate yet in the world. 

Empowers Individual Ownership

Bitcoin empowers individuals by granting ownership and control over their assets, fostering financial autonomy, and reducing dependence on intermediaries. With Bitcoin and other cryptocurrencies, you are the sole owner of your asset, instead of a third party. Unlike traditional currencies, Bitcoin and other cryptocurrencies are not prone to demonetization as they do not derive their value from a centralized authority. 

Can Crypto become mainstream in future?

Cryptocurrencies, especially Bitcoin, have the potential to become mainstream in the future as their popularity and acceptance grow. With increasing digitalization and interest in cryptocurrencies, more businesses and individuals may adopt Bitcoin for transactions. 

El Salvador has already accepted Bitcoin  as the legal tender in the country and many other governments have also legalized its use cases. However, its mainstream adoption depends on regulatory acceptance, stability, and a broader understanding of its technology and implications.

Also Read: All You Need To Know About Blockchain Technology and its Applications