Crypto has gained a lot of popularity and has gotten widely adopted in the most recent years, but we are not nearly as mainstream as anyone who came after 1k wants us to be. The good thing is that crypto is rapidly becoming an alternative form of payment and investment, even for normies. Crypto is no longer the fringe topic that only basement dwellers talk about. However, it still faces several obstacles that may impede its widespread adoption over the next few years.
One major obstacle is regulation. Governments and financial institutions are still figuring out how to regulate and monitor the use of cryptocurrency. Some countries have outright banned it, while others are still working on developing laws and policies to govern its use. This lack of clear guidance can make it difficult for businesses and individuals to use cryptocurrency in a legal and compliant manner.
Another problem is the topic of crypto payments. Even though cryptocurrency transactions are fast and inexpensive, there are still challenges in terms of usability and acceptance. Many merchants and businesses do not yet accept cryptocurrency as a form of payment, which limits its usefulness as a medium of exchange. Additionally, using crypto payments can be difficult for people who are not familiar with the technology and the process of buying, selling and using digital currencies.
Decentralized finance, the last kid to join the gang - for the time being - has amazing protocols, but the problem lies side by side along the benefits. These protocols are trustless, meaning they are not controlled by any centralized authority and are based on blockchain technology. However, they can be difficult to understand and use for people who are not familiar with the technology and the processes involved. This can make it difficult for people to access and use the benefits of DeFi protocols.
A sit at the big kids' table
Bitcoin is the first and most well-known cryptocurrency and has been in existence since 2009. Despite its early origins and the many challenges it has faced, it is still considered by many to be the most viable and stable cryptocurrency. Bitcoin's market capitalization is larger than all other cryptocurrencies combined, and it is widely recognized and accepted as a form of payment and investment.
There are several factors that suggest that Bitcoin may claim a spot on the "big kids table" sooner than we think. One is its increasing mainstream acceptance. More and more businesses, merchants and financial institutions are beginning to accept Bitcoin as a form of payment. This is helping to increase the visibility and legitimacy of Bitcoin, making it more accessible to the general public.
Another factor is the growing institutional interest in Bitcoin. In recent years, more and more institutional investors have started to invest in Bitcoin and other cryptocurrencies. This is a significant development as institutional investors tend to have more capital and resources to invest and can help to stabilize the crypto markets.
Additionally, the growing interest in and awareness of cryptocurrency, as well as the increasing adoption of blockchain technology, has led to more research and development in the field. This has resulted in new and improved technologies that make it easier and more secure to use and store digital currencies, which could drive more mainstream adoption.
Gaining interest over time
In the past, Bitcoin and other cryptocurrencies were mainly associated with individual investors and early adopters. However, in recent years, there has been a significant shift in the type of investors interested in Bitcoin. Today, institutional investors such as hedge funds, pension funds, and endowments have started to take notice and invest in Bitcoin. This is a significant development as institutional investors tend to have more capital and resources to invest, which can help to stabilize the crypto markets.
This is partly due to the increasing number of businesses, merchants, and financial institutions that are beginning to accept Bitcoin as a form of payment. This is helping to increase the visibility and legitimacy of Bitcoin, making it more accessible to the general public. Added to that, many institutional investors recognize the potential of blockchain to disrupt traditional financial systems and are starting to invest in companies and projects that are working on blockchain-based solutions.
Boosted by the growing interest in digital assets, research and development in the field has grown exponentially over the past couple of years, resulting in new and improved technologies that make it easier and more secure to use and store digital currencies, which is definitely taking us towards mainstream adoption sooner rather than later.
Hodling times ahead
The current state of the financial and cryptocurrency markets definitely indicates that crypto holders want to hold onto their investments and will continue to do so in the coming months. This is because many people like you and me, are currently awaiting for a bull market, mainly because we are already witnessing millions of dollars funneled into dollar base or FIAT base debt by using bitcoin or ethereum as collateral and this trend is expected to continue as more businesses and financial institutions start to recognize the potential of digital currencies as a form of collateral.
The role of stable coins
Stablecoins are becoming increasingly popular in the crypto space and are expected to play a significant role in the future of payments and settlement systems. One of the main reasons for this is that stablecoins provide a way for merchants and businesses to accept digital currencies as payment without having to worry about the volatility of the crypto markets.
One of the key use cases for stablecoins is in card networks. Card networks, such as Visa and Mastercard, enable merchants to accept electronic payments from consumers. However, these card networks are typically based on traditional fiat currencies, which can be slow and expensive to process. By using stablecoins, card networks could potentially enable faster and cheaper transactions, which would be beneficial for both merchants and consumers.
Another use case for stablecoins is in the field of DeFi. In DeFi, stablecoins can be used to provide liquidity to different protocols and platforms, making it easier for users to trade different assets and access financial services.
TLDR, stablecoins are going to become the backbone for settlements in different debt and payments systems, it's only a matter of time until we see this concept getting widely adopted.
Hint: it's already begun and it uses the lightning network for micro transactions on debit card systems.
The disruption currency came here to stay
And it is slowly taking over.