Roadblocks to Large Scale Bitcoin Adoption in 2020

Data & Research / 15.08.2020

A lot has transpired since the world first learned about Bitcoin in 2009. This revolutionary protocol introduced entire industries to the idea of decentralized currencies and blockchain technology. In less than ten years, the blockchain sector has achieved billions in value, with much more yet to come. 

There are thousands of cryptocurrencies available to investors currently. Each of these concepts is unique and provides an essential perspective on the market. Notably, all of these projects owe a nod of respect to their predecessor – Bitcoin.

Currently, Bitcoin is at a precipice in its lifespan. For the first time in history, digital banking is at the forefront of the ordinary person’s daily activities. The Corona pandemic has left billions of people around the world questioning the safety of direct contact transactions. In many parts of the world, the population is under quarantine, which has left economies suffering huge losses.

Top Roadblocks to Bitcoin Adoption in 2020

The momentum pouring into the digital banking sector continues to drive innovation. Today there are more Bitcoin users than ever. Additionally, the Bitcoin ecosystem is now a vast network that includes PC and mobile Dapps, exchanges, wallets, and a host of other unique financial instruments. So why doesn’t everyone use Bitcoin today? 

Two Types of Adoption

Understanding Bitcoin’s adoption woes begin with understanding the two types of adoption in the market – personal and institutional. Each has its issues to address, along with its risks and rewards. The next thing to understand is that both forms of adoption are equally crucial to the big picture of Bitcoin.

Public adoption

The first form of adoption is by the people. When people begin to use Bitcoin for everyday transactions, the market has reached this point. When your local grocery store or gas station begins to take Bitcoin, you will know the market achieved this level of adoption.

Public Roadblocks to Adoption

The main roadblock to large scale Bitcoin adoption by the public  is simply a lack of understanding. Most people are confused about the purpose and point of Bitcoin. Remember, most people are clueless about the inner workings of the global economic structure. This lack of understanding leads people to fail to understand how Bitcoin derives value in the first place. 

How to Use Bitcoin

Once people get passed the confusion, there is still a technological learning curve to address. The Bitcoin network introduces some fundamental shifts in banking mentality. For example, no longer would a bank hold your earnings. Instead, the public bears the responsibility for their private keys in the Bitcoin network. Notably, there are also a few crypto custody services now offered by banks.

More Dapp Development Integration

Most analysts agree that it will take a large scale crypto integration such as Facebook’s Libra to speed up the process. Leading social media networks are in a race to become the driving force of change. However, regulators are not keen on giving any more power to these mega-corporations. Consequently, all attempts by large social media platforms to issue blockchain assets are in regulatory limbo.

Institutional Adoption

Major firms investing in Bitcoin is the next step in crypto adoption. Today, more major institutions consider Bitcoin a valuable digital asset than the years prior. Additionally, every major government and corporation has some form of blockchain pilot program in place currently. 

Regulatory Concerns

Institutional investment into Bitcoin has been held up mostly due to a lack of legal framework. The current system features a design that relies on third-party verification systems. Even though blockchain eliminates these parties and their associated costs, the legal framework in place still requires their input. Until the current regulatory framework adjusts to meet the enhanced capabilities of blockchain technology, the market will never realize its actual benefits. 

Tax Concerns

Both parties face uncertainty regarding the taxation of digital assets. Historically, market volatility has made it extremely difficult to note and file crypto transactions in fiat denominations accurately. Companies and investors need clarity regarding these issues to avoid future penalties or fines.

Bitcoin – Its Inevitable

Bitcoin already proved its worthy of the title as the king of cryptocurrencies. Despite nine years of improvements, the underlying technology and protocol remain true to their original purpose. Notably, most analysts agree that blockchain technology such as Bitcoin, have years of adoption ahead of them. For now, think of Bitcoiners as a group of individuals sitting atop the peak of a giant iceberg ready to smash into the outdated centralized systems of today.

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.