Many people are put off Crypto due to a negative perception and first impression of the space. They somehow expect new technology to be immediately perfect and without incident. The numerous “Bitcoin hacks” don’t do the space any justice, as many believe that the actual blockchain has been hacked. Ignorance keeps them at a constant disadvantage. In actual fact, it is merely third-party entities being hacked. Bitcoin, the blockchain itself, has never been hacked. There was that incident some years ago in regard to the “double spend” issue, but that was quickly resolved. You can often discern how great the ignorance is within seconds of sparking up a conversation with a no-coiner.
It appears as if education is still a very dire need, and could help trigger further adoption. However, the industry is still very much in its infancy. Expectations should be realistic, as well as considerate of what such a journey entails. The road to mass adoption is a massive endeavor. Perhaps, we throw this term around too loosely? Think about it, mass adoption means that the majority of the global population will eventually be utilizing Crypto in some way. This is a huge ask!
Acceleration In Recent Years
When you consider how things have progressed in recent years, it’s literally mind-blowing. Governments legalizing Bitcoin as legal tender. Companies putting Bitcoin on their balance sheets while payment giants like PayPal and Visa scurry to grab a piece of the pie. The more recent development regarding BlackRock is simply the icing on the cake. There is no greater validation! BlackRock is the world’s largest asset manager, with $10 trillion in assets under management as of January 2022. Forget about Berkshire Hathaway, Buffet’s voice is but a squeak when compared to BlackRock.
Various jurisdictions have also provided Crypto as a means of payment for taxes. Numerous vendors around the world, as well as online stores, are accepting Crypto payments. This is what the beginning stages of global adoption look like. We are further down the road than many may think. Presidents and politicians around the globe are busy advocating for Bitcoin, in particular.
A Painful Mess
However, that is just one side of the story. Unfortunately, we also have the SEC on the rampage. Numerous projects and personalities have been recently hit with the SEC hammer! The ongoing XRP drama looks very much like the SEC is trying to “make an example” out of the top-tier Crypto, in an attempt to set a “precedent”. Regulation surrounding stablecoins has also been a hot topic of late and is especially concerning to those thinking of entering the space. This is the messy phase where rules and guidelines change from week to week. There is no regulatory framework in place, which leaves investors and potential investors uneasy.
Add to that, hacks, DeFi exploits, network outages, insolvencies, and numerous other challenges and the picture begins to appear somewhat gloomy. Well, sorry to say, but this is how change and growth take place. There is no smooth and effortless transition to a superior system. It’s a messy and painful transition that will have casualties. Not everyone gets out alive! Not all of our hopes will be realized either. I have personally had to restructure and plan alternative models due to “regulatory frustration”. Perhaps, once an established framework is in place, I can revisit those strategies. However, until then, I adapt.
This is an unavoidable stage of the journey and promises to be somewhat uncomfortable. There will be victories and losses. However, I believe that ultimately, the outcome will be favorable for Crypto. Obviously, I cannot say for sure, but it is rather clear that governments are happy to proceed, provided their boxes get ticked, which is exactly what they are busy trying to accomplish. Furthermore, I wouldn’t expect this to take place overnight. This could take some time. I think we all realized that if Crypto was to grow to a level of mass adoption then regulation was a certainty.
This is just part of the journey. Unfortunately, we are traveling this leg of the road during a Crypto winter, which makes it even more difficult to endure. Either way, we press on! See you next time!