Ever since cryptocurrencies first came to be with the launch of Bitcoin nearly a decade ago, this technology has come a long way. However, it is yet to enter the mainstream usage, and many have been wondering why?
When cryptos first appeared back in 2009, they were not exactly taken seriously. They started as nothing more than a new technology without anyone really realizing its true potential. A handful of supporters of the idea were intrigued enough, however, and through their efforts, cryptos have developed to what we know them to be today.
Now, a decade later, the exploration and finding new applications of this tech continues, with millions of crypto enthusiasts from around the world trying to harness this technology’s full potential. Still, there are several large challenges that are standing in cryptos’ way, and the biggest one is, without a doubt, a functional usage.
Cryptocurrencies have become popular. Very popular, in fact. Their total market cap has nearly reached $300 billion, which is no small achievement. However, cryptos are still noticeably absent from the mainstream usage. This is mostly due to the fact that large, influential entities, like large businesses, entrepreneurs, and developers still hesitate to actually use them as part of their daily operations.
Experts claim that there are four largest reasons why this is the case, and those include volatility, issues regarding security, legal uncertainty, as well as the matter of their practical usage. Let’s review each of these reasons and try to explain why they pose an issue.
1. Volatility problems
To start off, we will cover the volatility issues first. This has been one of the biggest, if not THE biggest reason why cryptos still haven’t been massively adopted. Also, this is not only a problem with smaller altcoins but even the number #1 crypto, Bitcoin (BTC) itself, struggles with a 60-day volatility index.
There are various factors that are influencing the large changes in cryptos’ prices, and Bitcoin might be especially subjected to these price shifts. While some smaller cryptos go up or down for a fraction of a cent, Bitcoin has been known to rise or fall for thousands of dollars in a moment. This comes for various reasons, like uncertainty regarding the regulations, shifts in supply and demand, and even market rumors and speculation.
Of course, this is not always a problem for crypto investors, since they have experience in tracking these fluctuations at all times. However, a regular user would find it more than difficult to track these changes and to keep an eye on them simply to know how much money they actually have.
2. Security issues
Cryptos were mostly left alone for the first part of their existence, which helped them start proper development and growth. However, in the last several years, since they started becoming really big, they attracted the attention of scammers, hackers, and other types of online criminals too. Soon enough, new fraud scandals and hacking attacks started appearing every other week.
Sometimes, they involve Ponzi schemes that are trying to trick unsuspecting investors into giving away their money. In other cases, there are large hacks, like the one that hit Mt. Gox, during which the hackers got away with $460 million in cryptos. All of this has caused a large amount of distrust towards cryptos, and the entire lawless image has kept a lot of people from dealing with them.
Even now, one of the most common arguments against cryptocurrencies involves the claim that they are only used by criminals and terrorists. Because of that, these security issues, as well as fake ICO eliminations need to be a priority in order for cryptos to ever see a mainstream use.
3. Crypto-related legal uncertainties
Despite the fact that cryptos have been around for almost a decade, this is still a very short amount of time. This makes them new and uncertain, and even the governments’ regulatory experts cannot quite figure out how to properly regulate them and tax them.
Still, countries around the world are giving their best to try and do this, and rumors regarding their efforts have already had an effect on crypto prices and reputation. A lot of countries have already started investigating cryptos in order to understand them better. Others, like France, have even decided to change their tax decisions regarding cryptos. Until recently, taxes on cryptos in France were as high as 45%. After reconsideration, the country reduced the tax rate to only 19%.
This definitely proves that changes are happening and that they can be positive for the crypto world, and their communities. However, there is still way too much uncertainty for these issues to be resolved quickly. The hard truth that everyone will have to face is that these things take time, especially since this might be the largest change regarding finances since the financial systems were invented.
4. The lack of practical usage
The fourth reason why cryptos aren’t receiving more mainstream usage can be seen as a result of the previous reasons, and that is the lack of practical usage. Sure, you can mine coins, buy them in an exchange, or receive them as a payment from someone else who has them. But what then?
Lately, there has been a lot more acceptance for cryptocurrencies around the world, but that wasn’t always the case. Cryptos are being accepted by businesses, goods and service providers more and more, but that has only started recently. Even so, the process of opening up to cryptos is incredibly slow and careful.
Companies like Overstock and Expedia have, for example, started accepting Bitcoin as a payment option. Banks around the world, while probably even more careful than others, are seeing that cryptos refuse to give up and leave, which has caused them to find a way to implement them into their business practices. However, this process is still remarkably slow.
What crypto enthusiasts need to remember is that, while slow, the process is still happening. This is something that will require patience, and one small step at the time. In time, however, cryptos will certainly have a widespread usage, provided that they resolve these issues. If that can happen, mass adoption is a certainty.
One solution might include the OPEN platform
In search of solutions to the crypto-related issues, many have discovered the potential that the OPEN Platform has. The platform’s plan is to try and spearhead the wider acceptance of crypto and blockchain technologies and make cryptos more useful when it comes to buying and selling services and merchandise.
It is a decentralized payment gateway, first of its kind, and it can process payments both on, as well as off of the blockchain. The platform offers a large number of cryptos for their customers to choose from, and make use of them by making subscriptions, in-app purchases, and alike.
The OPEN Platform also allows developers to integrate their payment gateway into the applications that are already existing. Best of all, there is no need for these developers to be familiar with Solidity, or pretty much any other programming language. This will make the integration of the platform much easier and faster.
If you are interested in discovering more, you can always visit the platform’s website. The website offers all of this information and explains the plan on how to make crypto spending easier. Of course, the platform is always happy to accept new developers who are looking to enhance their apps. Those interested can sign up for their OPEN Developer Program, and uncover new possibilities that no other platform can offer right now.