Coinbase President Emilie Choi drew the analogy of crypto to old mobile phones that had awkward, complex interfaces. Therefore, she believes that, like phones, cryptocurrency should also become more convenient to use, simpler. Since at the moment, crypto remains potentially confusing for beginners.
Cryptocurrencies are still too hard to understand
The concept of “cryptocurrency” is something so capacious and rich that every day you can discover something previously unknown. This is a completely new phenomenon, so even the concepts used to describe crypto not fully formed. Decentralization is a new concept, not to mention Proof-of-Work, Proof-of-Stake and mining algorithms.
To learn about crypto, you have to read a lot. At first, you will face a complete misunderstanding. Therefore, you have to strain to understand the meaning of individual words or phrases. Understanding can come within 20 hours, and maybe after 200. In any case, this is a very big job, and, as it turned out, most people are not ready for this.
This is why companies should make it easier for people to interact directly with cryptoassets. Since even a simple transaction can become a burdensome task for beginners.
Although it should also be noted that most people do not understand cryptocurrencies simply because they are not interested in them. In one recent poll, the main reason respondents do not own cryptocurrencies was “lack of need or interest”.
However, in general, interest in cryptocurrencies is growing every year. Even large companies have begun investing in crypto assets. For example, Tesla conducted cryptocurrency transactions, buying $ 1.5 billion in Bitcoin in February and selling 10% of digital coins at the end of March. The automaker managed to record a profit of $ 101 million, and thanks to this, break the revenue record for the first quarter. The largest US investment banks have also started using bitcoin. For example, JPMorgan recently announced plans to create the first actively managed Bitcoin fund.
Bitcoin is the fastest growing phenomenon in history in terms of market capitalization. In order not to pay attention to this, you need to be very incurious.
Many people say that cryptocurrency is too risky an investment. However, over time, the volatility of crypto has already decreased and will continue to decrease. Volatility is an inevitable property of new asset classes.
“Crypto beacon fire”
Even for those people who are curious and willing to strain to figure it out, it is still difficult to see the truth, to feel the blockchain “see the light of the beacon”. Most people have never knowingly interacted with the blockchain. Most of them have never met someone who used crypto as payment. So, they don’t see the context in which cryptocurrency is appropriate.
Therefore, the question of how we can create the most convenient interface for people remains open.
There are a myriad of solutions for people to participate in the crypto space, from shopping apps to payment systems like BitPay and the availability of assets at PayPal. However, much remains incomprehensible to beginners.