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What Stands in the Way of Crypto Mainstreaming?

Crypto Mainstreaming
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Coinbase listing had all the vibes of crypto mainstreaming. However, the ground reality suggests that crypto has a long way to go for solidifying its position as a mainstream asset.

Cryptocurrencies are digital assets available for trading on multiple crypto exchanges. On April 14th, Coinbase, a major crypto startup went public in the US. The crypto community was elated over this event. A financial analyst called it Amazon moment for crypto.

The digital assets industry is still in its infancy. It claims to be an alternative to a centralized banking system.  The decentralized and open nature of blockchain technology validates transaction in a trustless manner. Governments and central banks are taken out of the situation. The crypto revolution seems like the early days of the Internet. Besides, Wednesday’s events signified the first step towards crypto mainstreaming.

Despite the rise in value and acceptance from institutions, there are still a few hurdles that crypto needs to overcome for establishing itself as a mainstream industry.

Hurdles in the Way of Crypto Mainstreaming

The first-ever hurdle is ‘Volatility’. The cryptocurrency market is extremely volatile. The currencies can plunge with huge losses within minutes. As a result, serious investors are reluctant to go all-in on crypto.

The volatility also disheartens the Rookie investors. Yesterday’s events are in front of us. A rumour of legal action against some unnamed crypto-related financial institutes led to a significant plunge in bitcoin’s price. Newbie investors are the first ones to run out of the door when red candles start to appear on the chart. Resultantly, the market prices become highly dependent on speculation.

No matter what crypto enthusiast say nobody can go to a local store and buy coffee using bitcoin. You have to use fiat for that purpose. Thus, crypto is more of a commodity than a payment system.

Cryptocurrencies can become mainstream only if users can utilize them for daily transaction. Nevertheless, low or lack of volatility can only make this possible. Some companies like Tesla are allowing their customers to make purchases using crypto. More such endeavours can make crypto a widespread system of payment.

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