There is high volatility in the cryptocurrency market. While it peaked at over $800 billion during the start of 2018, it plummeted to less than $140 billion by the end of the year. According to CoinMarketCap, there are around 2400 cryptocurrencies doing the rounds in the global market today. A number of industries in including the adult entertainment industry have embraced crypto payments. This new niche has triggered various crypto-for-projects. However, these weren’t the reasons why crypto was envisaged. This article would throw light on why cryptocurrencies matter and how they can play a more significant role in creating a society of the future.
Why Cryptocurrencies haven’t achieved much Success
In 2016, Don Tapscott predicted on TED Talk that the blockchain technology would completely transform the finance sector in many ways. It included the way money transfers were processed, remittances were carried out, and valid claims to land were established. Although blockchain has created huge ripples, one must remember that its peak market cap stood at almost $1 trillion. Thus, it shows that crypto has remained restricted as mostly a speculative venture, without having made any real impact.
Although the average transaction fee for Bitcoin is about half a dollar, the average remittance fee was almost 7%. With hundreds and thousands of people out of the banking network, one can’t stress enough why cryptocurrencies matter. If one were to carry out a thorough blockchain analysis, they would find that although there is a long way to go, they can’t give up on the blockchain dream just yet.
Boosting Crypto’s Adoption
Even the best of technologies are useless without adoption as they would be like an unused tool. The state of regulations acts as the most critical impediment to blockchain’s wide-scale adoption. According to blockchain regulation news, Michael Pompeo, the U.S. Secretary of State opined for greater crypto regulation in an interview. He cited the example of 9/11 as one of the reasons why greater crypto regulation was required. This made huge headlines in cryptocurrency regulation news. Although 9/11 happened almost a decade before the birth of cryptocurrencies, there is a need for regulators to come up with a new approach.
The approach should centralize upon changing the public perception of cryptocurrencies. Such an approach is already underway. The United Nations conducted a program called Blockchain for Impact Global Summit and Stanford Research. If projects start fostering a favorable regulatory environment, it would benefit the entire industry. However, as things stand, the strict compliance requirements of many projects create many barriers to the adoption of cryptocurrencies.
A 2004 MIT paper discussed the imbalance in investment money. The claims made in that paper are still amply reflected in the challenges that startups face in many of the developing nations. If cryptocurrencies are adopted on a larger scale, they can offer a potential solution and open up equity investments to the masses. However, there is one limitation- there are no crypto-based equity crowdfunding platforms out there. It means that the legality of the same can’t be ensured.
Until and unless the industry focuses on cryptocurrencies, the perception and actions of regulators won’t see any shift toward crypto coins. This would limit the world from creating solutions that are truly meaningful and that is precisely why cryptocurrencies matter.