Hi, frens...
In spite of the growing popularity of crypto and blockchain, the complications of the technology might be making it difficult for average users to understand, adding a hurdle to more people jumping into the space.
As per a survey conducted in August by Australian Crypto Exchange Swyftx, 43% of 2,229 respondents shared they hadn't used the technology as they were not sure how it works.
In a similar data from the 2023 Crypto Literacy Survey, found that at least 28% of 3,000 respondents globally shared the same sentiment.
A research note published in 2023 by the United Kingdom Financial Conduct Authority (FCA) found that at least 30% of 2,337 respondents listed a lack of understanding as a reason for not entering the crypto space.
Blockchain intelligence company Chainalysis claimed in its 5th annual Global Crypto Adoption Index study that the introduction of spot Bitcoin exchange-traded funds (ETF) in the US in January was the primary driver of a sharp increase in cryptocurrency usage that year.
Some types of ETF shares can now be purchased by investors at market prices on stock exchanges without a high level of technical knowledge.
According to the Managing director at KuCoin Alicia Kao, crypto can look complex to an average individual sometimes due to its connection with advanced technology and often complicated user interfaces, however, she shares the industry is actively working toward a remedy for the problem.
Lack of clear regulations according to Saad Naja can also cause confusion with some users choosing to remain on the sidelines until the rules around the industry are clearer.
According to Naja, education will be very important, but it needs to go beyond lengthy tutorials and dense documentation. Rather, the emphasis needs to be on interesting and enjoyable interactive learning opportunities.
