Cryptocurrency has rapidly become more widely adopted in the last few years as an increasing number of people and institutions are using it. Yet, entrepreneur Matthew Sgherzi says there are still things that need to be done to bridge the gap between cryptocurrency and mainstream adoption.
Below are some hurdles that cryptocurrency as an entity needs to overcome in order to be adopted by mainstream audiences.
Perhaps the biggest challenge for cryptocurrency’s mainstream adoption is building trust in this audience. It’s always a challenge to get the masses to adopt something new and revolutionary, especially when the thing it’s replacing is so commonplace.
That’s the hurdle that cryptos must overcome as they seek to replace — or at least supplement — traditional fiat currency.
As if the task wasn’t difficult enough, negative news about the crypto industry certainly doesn’t help matters. When mainstream audiences read about the collapse of FTX, for instance, it scares them off of crypto as a whole.
As Matthew Sgherzi says, “Events, both positive and negative, often paint a perspective surrounding any such topic, and digital assets and cryptocurrency are no exception. These events are often manipulated during certain times to create an emotional visceral reaction that guides the masses into believing something is a scam one moment, and adopting it as the future standard of technology the next.”
Cryptos are still considered by many to be risky, and this is due in large part to the fact that they’re unregulated. This fact is what the digital currency was built on, but it’s also something that might not be around for much longer.
Governments all across the world have started to at least investigate how to best regulate cryptocurrency. The goal, of course, is to stamp out illicit activities while not stunting the true purpose behind what they do.
Those in the crypto industry have traditionally balked at such regulation, but that strategy might not work to convince the mainstream public that the products can be trusted.
“One of the most unpopular positions to have in the cryptocurrency space, but is required for mainstream adoption, is to want regulation and centralization. Decentralization is great on paper, but oftentimes you are exchanging centralized Government entities in traditional finance for decentralized unqualified fools in cryptocurrency,” Sgherzi said.
It’s almost inevitable that regulation in some form is going to be placed on cryptocurrency, though it’s unclear at this point what that regulation will look like and where it will come from. Because of this, it’s important for leaders in the industry to embrace regulation and work to ensure that whatever gets passed isn’t too restrictive.
Educate the Public
Despite cryptocurrency being a term that nearly everyone knows nowadays, there is still a large percentage of the public that really doesn’t understand what it is. They don’t know the basics of how it works, which leads to a lack of trust in it.
Industry leaders frequently tout the benefits of cryptocurrency, but what many fail to realize is that they won’t be successful at convincing the mainstream public that it’s something they should adopt if they don’t understand the core product.
It’s incumbent on these same leaders to educate the general public on the basics of cryptocurrency. What is it? How does it work? Why can it be trustworthy?
All of these questions need to be answered at the most granular level for people to start to come around.
Over time, as the public becomes more educated about cryptocurrency, they’re more likely to adopt it.
About Matthew Sgherzi
Matthew Sgherzi is an entrepreneur with a knack for trendspotting. Holding a degree in Computer Information Systems, he is known for navigating emerging trends ranging from Amazon FBA to cryptocurrency and Web3 technology.
Sgherzi is also dedicated to philanthropy and public service, serving as a previous Elder and current IT Administrator at his community Church and supporting the James Project in Central America. Matthew’s contrarian approach sets him apart in the entrepreneurial landscape, consistently capitalizing on emerging opportunities.