The mass adoption of cryptocurrency is seemingly inevitable given the recent onslaught of news highlighting its potential legitimacy. Digital media website Mashable reported on the launch of four products that would allow institutional investors to conveniently perform cryptocurrency trading. Created by cryptocurrency exchange Coinbase, the products’ aim is to resolve issues faced by large investors when entering the volatile crypto market: secure and safe asset storage, liquidity, quality support, and advanced margin trading as well as over-the-counter products.
Possible adoption via products that meet investors’ needs
Coinbase is optimistic on these tools’ ability to convert investors to cryptocurrency believers and thus pour into it large financial capital. Adam White, Coinbase’s Vice President and General Manager, cited institutional clients’ demand for cryptocurrency solutions that would directly address their complex needs. Coinbase Custody is one such product that offers safe cryptoasset storage. Another product is Coinbase Prime, an advanced tool exclusively made for professionals and institutions, offers margin trading, algorithmic orders, and multiple user permissions. Coinbase Markets offers a central liquidity pool for all of Coinbase’s offerings including the GDAX trading platform. Lastly, client support is provided by Coinbase Institutional Coverage Group based in New York City.
Crypto website Ambcrypto has similarly noted the influx of “institutional money” into the cryptocurrency market due to trading infrastructure development – a circumstance that would eventually usher in the institutionalization of cryptocurrency according to analysts at capital markets research and consulting firm Tabb Group.
Possible adoption thanks to the promise of privacy
Also, Zcash – a cryptocurrency that provides users with enhanced privacy – is leading the pack with coins that offer optional anonymity. Cryptonews’ Simon Chandler claims that “privacy-coin features will be vital if cryptocurrencies are to be widely adopted in the future.” Currently, Zcash’s value has gone past Bitcoin. While the latter’s price decreased, Zcash increased to 47%. Founding member and CEO of Zcash, Bryce “Zooko” Wilcox, attributes the cryptocurrency’s success to the priority it places towards securing private information: “Proud of my team for once again publicly demonstrating that we don’t leak information and we don’t take advantage of our privileged access to information by trading on it.”
But Reddit commenters are more critical of cryptocurrency’s potential for mass adoption. Just as the above reasons are positive signs of crypto’s entry to the mainstream market, the following are commenters’ explanations of why mass adoption of cryptocurrency could be highly unlikely as well as the possible factors that commenters believe could cause crypto to be in the mainstream market.
Impossible because “Crypto transfers are nerve wracking”
User “WilliamMB*ttlicker” described his experience transferring crypto as “nerve-wracking” specifically when he sends huge amounts of money from one wallet to another with the risk of it disappearing into thin air. Thus, he believes that unless a more effective front-end crypto transfer facility is built, “mass adoption will not occur.”
Impossible because cryptocurrency has a complicated learning curve
At least this is what user “hoista” believes in as he explains that mass adoption will only occur, and “seamless(ly” too only when crypto requires “”no additional cognitive load when you are doing your day (to) day stuff.” The same user adds that blockchain must similarly be easy to use as it is one way to ensure its mass adoption – “when people are using it without realising they are using it.”
Impossible unless no proper regulations are in place
User “SafirexMiner” stated that “until proper regulations” are present, mass adoption will highly likely not happen. But once regulations are available, that is the time “where institutions money will join” – a sentiment that somewhat echoes a Technology Review article on how the industry of cryptocurrency will go mainstream as long as regulation is implemented. However, the article highlights self-regulation and not government regulation.
The article quoted the commissioner of the Commodity Futures Trading Commission, Brian Quintenz, when he declared the quick evolution of the crypto industry required a similarly quick way for it to regulate itself. Quintenz suggested an “industry-led organization designed to help the community come up with its own agreed-upon standards and rules.”
What do you think? Do you see a mass adoption of cryptocurrencies in the very near future?