Four barriers to mass adoption of Bitcoin

The emergence of Bitcoin, which has now been around for over 10 years, will lead to the creation of a completely newblockchain technology industrywhich promises to radically change people's daily lives. These changes are still in their infancy, but promise to be quite extraordinary.

By now, this new industry is alreadyMuch has been achieved, both in terms of the growing attention that cryptocurrencies receive, and in terms of creating new digital assets outside the framework of the traditional financial system.

Also using ICO (Initial Coin Offer)A new mechanism for raising capital was created, along with a new mechanism for electronic financial assets using STO (Offer of Tokenized Securities). Despite these important innovations, there are still a number of circumstances that hinder the widespread adoption of Bitcoin by the general public. I suggest you turn to the study of the four main obstacles that stand in the way of the massive spread of Bitcoin.

There are, of course, other obstacles, but here we will consider four, which are, in my opinion, the main ones.

1. The complexity of Bitcoin concepts for beginners

Entry into the world of cryptocurrencies is often described,like falling into a rabbit hole, because it is not known how far it can lead. At present, too few people fall into this hole, and there are reasons for this.

The learning curve in the world of cryptocurrencies and blockchains is far from simple and straightforward.

There are many abstract andtechnical concepts that are difficult for most people to understand, which confuses beginners. For mass adoption by the general public, it will be important to make these complex concepts and ideas more accessible.

Fortunately, the process of "democratization" in this area is already in full swing, which has made many resources available in electronic and paper versions.

However, it should be said that efforts to educate and educate the general public alone are not enough. It is also necessary to simplify the procedure for transferring cryptocurrency units to another person as much as possible.

Making transactions in cryptocurrencies should be a simple matter.

In general, the average user of anythe payment system does not want to hear anything about any private keys or about other cryptographic terms when conducting transactions. On the contrary, such concepts will tend to scare them and may become a stumbling block for them. Therefore, private key management systems have an important role to play in making them as transparent and simple as possible for users.

In addition to training activities conductedfor individuals, it is imperative to attach particular importance to business education. Integrating blockchain into existing business processes will be an important way to introduce blockchain to the general public.

Accordingly, organizations such as the Chambere-commerce should be universally recognized so that they can play an important role in promoting the potential of blockchain and related technologies for companies.

Therefore, training is the first important point that you need to deal with in order to achieve the massive introduction of cryptocurrencies.

2. Bitcoin is extremely volatile

If the general public is little aware of cryptocurrencies, there is one of its characteristics, which they probably heard about at least once. This characteristic is called volatility.

In less than a week, the media did not mention the volatility of cryptocurrencies, as one of the most serious dangers affecting them.

So the price of bitcoin or otherscryptocurrencies can grow by 20% in one day and it is easy to lose the same 20% the next day. Such fluctuations up or down can occur even within a few hours.

2019 was a confirmation of the high volatility of Bitcoin.

From the point of view of crypto traders, a similarvolatility is certainly a good thing, since volatility means the possibility of making more profit. However, the excessive speculation around cryptocurrencies tends to obscure what is really important for cryptocurrencies, namely the revolutionary side of basic technologies such as blockchain.

Unfortunately, the media,It seems more concerned with Bitcoin's price or fundraising in the ICO market than with these innovative technologies. And all this happens to the detriment of the general public, which is struggling to understand what is really really significant hidden in these very cryptocurrencies.

Bitcoin volatility, on the other hand, is a financial risk that affects the use of Bitcoin as a medium of exchange.

From the point of view of the consumer, despite the fact thatsuch volatility can increase your purchasing power, it can also significantly reduce it, and for many people this degree of risk is unacceptable. And as a result, most cryptocurrencies are considered exclusively as electronic speculative securities, instead of being considered a medium of exchange that can be used in everyday operations.

The stablecoins, in turn, seek to fightthis excessive volatility of cryptocurrencies such as Bitcoin, and can play a role in the future to become an important means of digital exchange for the general public.

3. Scalability

In order for mass adoption to take placeBitcoin or other cryptocurrencies, the existing infrastructure should be able to absorb the volume of transactions that will be carried out, given the increase in the number of users in blockchains. We have all already seen examples where undeveloped infrastructures were unable to scale to properly cope with the massive influx of users.

A significant problem is also significantan increase in transaction fees, as the number of transactions subject to verification is increasing, as we have already seen more than once in the case of Bitcoin since the end of 2017.

This problem, for example, at the end of 2017 revealedsignificant bottlenecks in the Bitcoin blockchain. The Ethereum blockchain is also not immune from this problem, which is why the Ethereum 2.0 project was launched to switch its network to a more powerful technology platform.

Of course, the cryptocurrency community is aware of these problems and has already begun to offer its own options for solving them.

A payment protocol such as the Lightning Network may allow the Bitcoin blockchain to move to the next level in the future, in terms of transaction processing speed per unit of time.

Ultimately it will be necessary to find out ifwhether the efforts made by the community to improve the scalability of Bitcoin are successful and sufficient to help increase the number of transactions if it is widely accepted by the general public.

4. Extremely speculative approach to Bitcoin by a large number of people

 Many community members enjoya short-term approach, buying bitcoins for speculative purposes only. This greatly hinders the potential mass adoption of Bitcoin by the general public.

Indeed, accumulating bitcoins without the desire to spend them in transactions, the price of Bitcoin rises and can only be a means of preserving value.

It is hoped that over time this situationwill change. The fact that more and more traditional merchants support bitcoins as a means of payment is an indicator that things are moving in the right direction and that Bitcoin remains a real medium of exchange.

Finally, let's not forget that creating a new industry that undermines existing established norms requires considerable work and therefore patience.

If you look back, you can see that over the past 10 years since the advent of Bitcoin, a phenomenal amount of work has been done in this direction.

Therefore, it is necessary to be patient and continue to support the implacable offensive of Bitcoin, while remaining optimistic in its ability to conquer a wide segment of the population.

Conclusion

Bitcoin's potential far exceedsthe number of current members who buy it. Therefore, it is important to remember that mass adoption and implementation have not yet occurred. As I just explained in this article, there are some obstacles to adoption.

They must first be considered andregulated by the community so that this massive adoption could happen in the future. Whether it is by educating the general public or creating tools to facilitate the use of cryptocurrencies, it will be necessary to make serious efforts, but the industry is still young, and we will need patience.

However, everything is going in the right direction, so I am still convinced that Bitcoin will be able to overcome these obstacles in the coming years.

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