Bitcoin Adoption: Crypto Leaders Cite Regulation, Price Speculation as Barriers

The cryptocurrency market is has seen good days in 2019 and technical pointers indicate a brighter future for the industry. However, Adoption is the one challenge cryptocurrency has not been able to surmount in the ten years of its existence. A number of major influencers in the cryptocurrency industry have expressed their views on why cryptocurrencies are seeing very slow adoption.
Regulation, Speculation
CEO of ShapeShift Erik Vorhees says the major challenge facing crypto adoption is regulation. While regulation is one of the factors that are key in driving institutional investors to the industry, it has not been handled well, hence the delay in institutional adoption, according to Vorhees. Individuals have shown significant interest in cryptocurrency and a significant number of them are using it, but the lack of clarity concerning the status of cryptocurrencies is a challenge holding institutions back.
Another major player Tyler Spalding, the CEO of Flexa thinks price speculation is the major challenge facing crypto adoption. This could be one of the reasons the SEC is delaying ETF approval for both Bitwise and VanEck. Recently, an Economics professor Steve Hanks described the lead cryptocurrency, Bitcoin as a highly speculative asset. This is the view of millions who still see cryptocurrency as being purely speculative with no clear direction. According to Spalding, cryptocurrency must be used to build useful projects for the common people if it will see any major adoption.
Read Here: Bitcoin Gains 55% in May as it’s 4th Best Month since 2013
Other factors cited as hindrances to the massive adoption of cryptocurrency include lack of appreciation for the digital asset at this time, according to Tone Vays. In his view, people are yet to see the need to use cryptocurrency but no obvious barrier is standing against adoption. Once people start to use it to solve real problems then adoption will increase. Tron CEO Justin Sun in a similar fashion said the user experience for crypto needs to improve, as most users currently find it difficult to use it.
It has started, though
Although adoption is still at a very low level, several indicators suggest the industry, particularly Bitcoin, is seeing wider adoption and acceptance worldwide. For instance, LongHash data shows an increase in the number of confirmed Bitcoin transactions in 2019 and more merchants are accepting it for payment on varying skills. With this and the coming institutional investors who are expected in the industry when the SEC eventually approves ETFs, cryptocurrency adoption is likely going to see the adoption it needs to become a mainstream industry.
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Source: CoinGape

Why This Billionaire Investor is Betting on a Project Bringing Bitcoin Payments to Starbucks

Billionaire investor and all-round cryptocurrency advocate Tim Draper has recently announced that he has invested in a Bitcoin payment processing platform. OpenNode aims to make it easier for regular companies to accept payments using Bitcoin.
Draper backed the company through his own firm, Draper Associates, to the tune of $1.25 million. The long-time Bitcoin bull believes that the price of a single Bitcoin will be worth $250,000 in the next three to five years and initiatives aimed at adoption, such as OpenNode, will help to speed this “hyper-Bitcoinisation” up.
Buying Your Weekly Shopping with Bitcoin Could Soon be a Reality with OpenNode
Rather than focus on providing rapid conversions back to fiat currency, as many Bitcoin payments processors on the market today do, OpenNode instead hopes to enable the spending of Bitcoin and other cryptos with existing companies. According to a report in Observer, this should allow people to use digital currencies to make purchases at popular venues such as Starbucks, Subway, and Amazon.
The report states that OpenNode transactions will function like a credit card processing system. However, it is expected to cost the retailer itself much less than your average Visa or MasterCard transaction. The figure stated for processing fees will be 1% of the total amount transacted. This is around half of the standard credit card network fee.
OpenNode is also working towards providing instant settlement of transactions, as well as micro-transactions. With such utility, the service could pose a serious challenge to the giants of the payment processing industry – if it is widely adopted enough.
The co-founder of the OpenNode project, Brandon Lewis, spoke to Observer about the goals of his startup:
“Our mission is to make Bitcoin a better alternative than any payment protocol that currently exists by building the best experience for a business’ needs… We see a lack of usable Bitcoin products in the space, so we’re making simplicity our top priority.”
Lewis went on to state that the OpenNode team is very pleased to have Draper Associates on board. He stated that in such a scam-heavy space, he has been forced to reject many potential investors in his platform. However, since Draper is fighting for the same end as Lewis, he makes the ideal backer:
“We are very excited to have Draper Associates on board because they share in our long-term vision of hyper-Bitcoinization and micro-transactions.”
Draper has a vested interest in doing all he can to make Bitcoin a commercial success. Reports suggest that the billionaire holds as many as 40,000 BTC. His stash is worth around $160 million at the time of writing. If the venture investor’s price prediction holds true, he would be sitting on a staggering $10 trillion – providing he continues to hold his investment.
Related Reading:“Crypto Companies Will Choose the Governments the Most Open to Them,” Tim Draper and Others Forecast for 2019
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Survey: Four in 10 Brits Don’t Think Crypto Will Be Used as Cash or Card

YouGov internet market research and data analysis group has conducted a survey about cryptocurrency use today and in the future in Great Britain.
The results found that more men than women were interested in the technology, it was a younger crowd who mostly saw Bitcoin and other digital assets’ potential, and just one in five felt that it was a good idea to reject central banking in favour of a cryptocurrency future.
YouGov Survey Provides Insight into U.K.’s Knowledge and Acceptance of Crypto
YouGov took a sample from its 800,000 registered members to determine which demographics in the U.K. were most interested or involved with crypto. This collection of people supposedly represents a diverse range of ages, genders, social classes, and academic backgrounds.
The YouGov website published the outcomes of the series of questions put to the sample today. The first addressed whether the respondents had even heard of Bitcoin. Here, an impressive 93% of Brits said they had.
The follow-up question addressed how many “feel they understand how Bitcoin works.” To this, only 9% of those answering stated that they understood the cryptocurrency “very well.” This compared to 65% who admitted to having the poorest understanding of BTC.
Interestingly, far more men claim to understand the financial and technological innovation than women. Compared to the 39% of men who said they understood Bitcoin either “very well” or “fairly well,” just 14% of women said they felt the same.
As you’d probably expect, young people were much more likely to have a stronger grasp on crypto. Over two in five of those responding to the survey said they understand Bitcoin “fairly well.” This compared with just 16% of those aged over 55. The results on age demographics are in keeping with U.S. Commodity Futures Trading Commission (CFTTC) chair Christopher Giancarlo’s opinion that interest in digital assets is generational.
The survey then addressed who had actually bought Bitcoin. Again, the results support the idea that younger people are more receptive to the ideas of decentralised money and digital scarcity. A total of 45 respondents aged 18-24 said they had either bought the digital asset themselves or knew someone who had. At the other end of the spectrum were those older than 55-years-old again. Just 1% had bought BTC themselves and 7% knew a Bitcoin investor personally.
Next, those involved in the survey were asked if they believed that cryptocurrencies would play an important role in the future of finance. Over one in five respondents stated that they felt digital assets would eventually be as widely used as card or cash payments. The answer distribution between the men and women was much closer in response to this question with 22% of men and 19% of women saying they thought a cryptocurrency future was likely.
Finally and perhaps most telling, the sample was asked about how they felt about the idea of a currency controlled by the public rather than one provided by a centralised institution such as the Bank of England. Just 3% of those asked said they felt “very positive” about the idea and 9% were “fairly positive.” The most popular answer by a sliver was “neutral” at 25%. Just behind was “fairly negative” at 24% and “very negative” at 20%. Finally, 18% of people asked said they didn’t know how to feel about it.
Presumably, if you were to ask the same question in a nation such as Zimbabwe, Turkey, or Venezuela you would get a very different answer. In terms of banks, the Bank of England is one of the least likely to abuse their power and trust in the institution has certainly been reflected in the responses to the survey.
Of course, there are issues with these kinds of online polls. The chief of these is the fact that we must assume that an overwhelming majority of the respondents are computer literate. If they were not, they would be highly unlikely to be a registered member of the YouGov platform in the first place.
This is immediately problematic with a topic such as digital currencies. Since a huge number of those surveyed are obviously regular internet users, they are much more likely to have encountered cryptos previously. The figures are therefore likely exaggerated when compared with a true survey of the entire British public.
Related Reading: Survey: A Quarter of Millennials Hold Crypto, Wary of Current Financial System
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