Blockchain and Cryptocurrency Beginner - What Other Factors Are Currently Limiting the Adoption of Cryptocurrency and How Can This Be Solved?

Problem: Irreversibility of Transactions - Not being able to reverse cryptocurrency transactions is not necessarily a bad thing, however, it has also shown to have its downsides. One of the main downsides thing feature causes is not being able to reverse transactions sent to the wrong address due to human error or mistakes. This can cause a business to lose a lot money. Imagine a situation where a business owner mistakenly sends over $100k dollars worth of crypto to the wrong address due to careless mistake by the receiver emailing a wrong or incomplete address.

Solution: - To solve this problem, blockchains should have a mechanism in that stops cryptocurrencies sending to an incomplete address. When a user sends a cryptocurrency to an incomplete address, the transaction should bounce back or not go through. Also, blockchains should have a mechanism that allows users to set up usernames to their corresponding cryptocurrency addresses in order to reduce the chances of sending cryptocurrencies to the wrong address.

Problem: High price volatility - This is one of the major problems associated with cryptocurrency and one of the major concerns for business owners. The high volatility of cryptocurrencies simply means that the cryptocurrency market experiences up and down price movements frequently and this makes it possible for cryptocurrencies to lose its dollar value in a short space of time. For business owners, this is not an ideal situation especially when it comes to receiving payments via cryptocurrencies. Imagine a situation where a business owner receives payment for a product or service via cryptocurrency and in few hours, the cryptocurrency crashes in dollar value, causing a loss based on the dollar value. This loss could be temporary or permanent depending on the cryptocurrency.

Solution: - To solve this problem of high price volatility of the cryptocurrency market, there need to be a good balance of supply and demand in the market. This means that solutions need to be in place to help keep the balance of supply and demand healthy. Also, pegging cryptocurrencies to something in the real world is another way of reducing volatility. The stable coins is a good example of that as they are pegged to the US dollars in a 1:1 ratio. This means that 1 stable coin pegged to the USD will always be close to 1 USD. With this, it will make it easier to gain more adoption as people will be more confident that the value of their cryptocurrency will not drastically drop in value without any real world cause.

Problem: Government regulations - This is without a doubt one of the main reasons as to why cryptocurrency adoption is limited. Certain countries have regulations that prevents its citizens from making use of cryptocurrencies to make certain type of transactions. Also, there are certain countries that have banned cryptocurrencies entirely and forbids its citizens from having any association with cryptocurrencies. This regulations adds to the reasons limiting cryptocurrency adoption.

Solution: - cryptocurrency should be seen as a type of currency that provides a lot of benefits to its users. Government regulations or bans implemented that are limiting cryptocurrency adoption in these countries should be removed to allow citizens to freely transact with cryptocurrencies. If this regulations are lifted in favor of cryptocurrency, the rate of adoption will increase greatly.

Problem: Negative sentiments on social media - This is one of the main reasons why cryptocurrency adoption has slow. Social media is a great tool to communicate and share information. However, social media has somehow become a very toxic place where people posts hates, troll and try to bring down good things by spreading false or negative news around. With active social media users increasing rapidly, this becomes a huge drawback for cryptocurrencies as new users will be discouraged and turned off by the negative posts, comments or news seen on social media.

Solution: - To solve this problem, social media platforms needs to implement a solution that limits the rise of bots, spam accounts and hateful and negative comments on their platform. It is very rare for a user with real name on social media to spread negative news or troll. So if these bots, spam accounts or troll accounts are stopped, it will go a long way in solving the problem of negativity around cryptocurrencies.

Problem: Requires some level of technical skills to fully understand how to make use of it - Blockchain and cryptocurrency in its present state requires some level of technical skills and knowledge to fully understand how it works and how to make use of it. From installing the right wallets, understanding how to buy and sell on exchanges, to staking, pools, understanding how to set fees for optimal use case, understanding how the market works, and more. These is not easy for a total newbie. Anyone who in the crypto space will testify the learning curve involved in understanding cryptocurrencies and how to properly make use of it. It takes some time to fully understand. This is why some persons are not interested or not ready to learn any new thing. The technicality involved in cryptocurrencies is one of the reasons that is limiting cryptocurrency adoption.

Solution: - The solution to this is to make cryptocurrency very easy that even a total beginner would understand how it works and how to use it properly. Reducing the technicality starts with proving very simple user interfaces for anything relating to cryptocurrencies, like wallets, applications etc. Also, there should be a lot of well thought out easy to learn materials and learning videos on blogs, and platforms like youtube that can help onboard new users. At the moment, there are not enough high quality materials out there to teach new users cryptocurrency, how it works and how to properly make use of it.