Recently, the story of Peter Schiff received a lot of attention when he admitted to having mistaken his pin for his bitcoin wallet password. Many tech-savvy people were less forgiving, while others who understand the struggle that the general population has in grasping the concept of cryptocurrency pointed out how this problem affects many people.
Many don't believe that I set up a Bitcoin wallet but never had the password or seed phrase. Erik Voorhees set it up for me over dinner. For some reason Erik let me leave the restaurant without a copy of either. Not sure why. While I had no experience with #Bitcoin he had plenty.
— Peter Schiff (@PeterSchiff) January 23, 2020
Bitcoin bugs are saying I'm not qualified to give advice about Bitcoin because I don't know the difference between a pin and a password. I know the difference now and my advice hasn't changed. But those Bitcoin bugs still don't know the the difference between #Bitcoin and #gold.
— Peter Schiff (@PeterSchiff) January 24, 2020
While people will make fun of Peter, he’s highlighting an important issue which is that crypto is still super clunky and difficult for people to use, especially less tech savvy folks
— jackiemoonie (@jackiemoonie1) January 23, 2020
People that were born after 1980 are always complaining about how it gets frustrating to keep on explaining how to use electronic devices to older generations, and they make fun of it on social media platforms because they can’t relate to the struggle.
For them, technology is easy to use, and because they were born into it, it is a part of their lives. Inventions like Radios, television sets, computers, the internet, mobile phones, smartphones, and laptops, are all generational inventions that have, at one point, been hard to understand or considered difficult to use.
Cryptocurrency is on the verge of revolutionizing the next generation of fintech innovations. So why do people complain that it is too complex to understand?
Cryptocurrency represents fascinating possibilities for the future of all things, especially global financial inclusivity. Still, many people are skeptical, despite having interest, feel like it is only beneficial to the elite group of coding geniuses.
Why Are People Shying Away From Cryptocurrency?
The biggest hindrance to the security of digital assets is their complexities, which will be a bigger hindrance to their adoption. If people don’t understand how to keep their money secure, it will be termed risky and attract a lot of dishonest people preying on the ignorance or lack of understanding to make away with a lot of easy money quickly.
The process of creating secure cryptography has a few steps. First, the algorithm is written on a software, embed it into a larger software, managed with an operating system, run on hardware, connected to a network, and finally operated and configured by users.
A substantial number of people are aware of cryptocurrencies, and because it is harder and more expensive to get them than it was ten years ago, the pressure to get onboard is rising. However, as the smart to move it to learn about the concepts before considering investing in it, terms like hash rates, public and private keys, mining, and hot and cold storage e-wallets have become a barrier to securing cryptocurrencies.
The other concern is that cryptocurrencies like Bitcoin are very volatile, and the rate at which prices fluctuate leaves little room to be desired, especially for people who are used to the security and familiarity of the regulated traditional exchange markets.
The underlying math of the cryptography is secure, and therefore attackers tend to exploit the other systems, which are much easier to bypass than cracking the cryptography itself. This weakness has been exploited in many crypto-exchanges. Weaknesses affect the systems, not on the mathematical programming but in the vulnerability of the network security measures.
In networked systems, the higher the levels of complexities, the higher the chances that it will be compromised by inter-system interactions, coding, and configuration options.
Many people only own crypto in exchanges, and this whole idea totally contradicts with the decentralization aspect of digital currencies. The exchanges have full control of your coins, and if anything happened to the exchange, your coins are lost. 2019 saw countless cases in which exchanges got hacked, and millions of dollars in crypto-coins were lost. In other instances, CEOs went missing with private keys, causing people to be locked out and lose their funds.
A significant number of people don’t understand the anonymity nature of cryptocurrency. They fail to understand how important their private keys are, and if they lose them, they lose access to their coins indefinitely. Unlike in banking institutions where accounts can be recovered with enough verification, private addresses are lost forever, and people don’t understand how or think it is not worth the risk. One Bitcoin is worth more than $8000, too much to risk over a password, for the majority of people.
Where Are We On Mainstream Cryptocurrency Adoption?
Right now, many startups are focusing on creating proper infrastructure. 2019 saw many such startups entering into strategic partnerships to enhance scalability and streamline these networks to support safe and fast public use cases. Many of the tech-savvy innovators are at the point of creating platforms that will make it easy for developers to create applications for end users.
Normally, all new technologies take time to develop and to be adopted by the mainstream population. However, because of cryptocurrency is so far the most developed branch of blockchain technology, many people who are not mainly focused on long term development are taking advantage of the bust to exploit the naivety of the general population.
A good number of fintech startups, especially those who are interested in long term use cases of blockchain and crypto have been taking a lot of time and conducting a lot of research to create simple crypto solutions. These developers have realized that to push cryptocurrencies into mainstream adoption, they not only have to be secure, but they need to be simple.
The best way to begin understanding cryptocurrency is to read about it and to check out trends and news about cryptocurrency. It is also important for interested people to find out the status of regulations in their countries to avoid getting on the wrong side of the law.
Many national and international organizations are working to improve regulations of digital currencies so that many developers can have a friendly creative environment and support from governments to safe applications for users.
Crypto media is killing their own industry
Why oh why do the large crypto media sites keep publishing their FUD, opinion pieces from fake news generators and endlessly talking about the goddam prices. The general public can go on their phone and check the prices on any one of two dozen apps. Or they can visit any one of a million websites with live price tickers. Why on earth do you need to post 6 articles per day about this or that crypto rising or falling a percent or two. Particularly when all cryptos generally move in sync. It is pathetic. And don’t get me started on price predictions posts. JUST STOP IT. STOP ALL OF IT.
CCN set the bar for the big crypto media websites by rebranding away from crypto and into video gaming. Perhaps it is time for some of the other big boys to give it up and try something new.
Fintech Innovations Are Simplifying Crypto Concepts and Bringing It Close To the People
Experts, both in technological and financial fields, are referring to 2020 as the start of a new decade for expansive innovations and modifications that will see this rather young technology get the appreciation it deserves.
Learning institutions that are always in the front line of cutting edge technological innovations have started to introduce online and on-campus blockchain and crypto courses for investors as well as interested developers.
The availability of such courses can help shape the understanding and advancement of technology, and developers can use such user feedback to create more straightforward and more customized solutions that will cater to everybody’s needs.
Startups like FAAST let users create personal wallets that support many coins and trade directly, which eliminates the centralized aspect of crypto-exchanges and their associated risks.
The bitcoin teller machine was developed to simplify trading cryptocurrencies. Bitcoin ATMs are worldwide instant money dispensing units that allow people to buy Bitcoin using physical or digital fiat money. Others let users sell their bitcoin from personal wallets and exchanges.
HEdpAY, one of the earliest projects that bridge traditional banks and cryptocurrencies, inspired many variations of such bridging services that allow investors and businesses to transact with fiat and digital currencies. This serves as an introductory means to cryptocurrency and a fast way of fostering its adoption. HEdpAY allows fast transfer of fiat money to crypto from existing debit cards, accounts, and exchanges.
Many mobile apps developers like Mobytronics are creating apps for both iOS and Android users. Such apps consist of complicated tools displayed in user-friendly interfaces that allow users to make use of their traditional fiat money management knowledge to hold and trade their cryptocurrency. This is effective because the majority of the population has access to a smartphone and an internet connection. It makes it easier to market, create awareness, and a diverse pool of feedback from people who have never even had access to banking services.
The success of the fourth Industrial Revolution can only be achieved if third world countries are included in decision making. A global economy will involve cutting edge fintech solutions to reach the people that financial institutions have failed to cater for more than 100 years.
Cryptocurrencies hold the promise of accelerating Fourth Industrial Revolution, a global economy that will need total inclusivity of third world countries. Banking institutions have been unable to cater to most of the marginalized populations in these regions, which can be easily reached and included by using cryptocurrencies. For cryptocurrency to have the desired universal value for currency, it needs not only to be availed to the people but to be presented in a simple, understandable format, which will take more time, awareness, and resources.