Roadblocks to Large Scale Bitcoin Adoption in 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 ordinary people’s daily activities. The Corona pandemic has left billions of people worldwide 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 Bitcoin’s big picture.
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 adoption level.
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.
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.
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 still requires their input. Until the current regulatory framework adjusts to meet blockchain technology’s enhanced capabilities, the market will never realize its actual benefits.
Both parties face uncertainty regarding the taxation of digital assets. Historically, market volatility has made it extremely difficult to accurately note and file crypto transactions in fiat denominations. 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.