Problems with cryptocurrencies

Current Problems

The mainstream adoption of cryptocurrency is predicated on the replacement of fiat by corporations and individuals in the day to day transactions. For most crypto users, it is difficult to understand why cryptocurrency hasn’t already overtaken traditional currencies, after all cryptocurrencies feature:

  • Better control over your finances
  • Faster, cheaper transactions
  • Decentralized storage and other features

And yet, despite the numerous, arguably dramatic benefits cryptocurrency offers over fiat, we still lack mainstream adoption. In fact, according to a Bloomberg report, just three out of the top 500 online retailers are willing to accept Bitcoin in exchange for their goods or services, and it’s not difficult to see why.
Retailers simply don’t want to accept a currency that can lose as much as 25% of its value in a single day. And so, if we look at the rest of the list of cryptocurrency features, we also it is:

  • Too complicated for most people
  • Volatile
  • Poorly perceived by corporations, merchants and consumers

Fiat is believed by the masses to be more stable, more secure, and easier to use. Thus, fiat is perceived to be more valuable. When it comes to adoption, usage and volume, perception matters most. The only way to demonstrate the value of crypto is by helping users experience its benefits first hand.