Is It Time That The Crypto Industry Points A Finger At Itself?
The crypto industry loves to ‘point the finger’ at banks with a laundry list of challenges digital currency fixes, including high transaction fees, centralised control, slow cross-border transfers and limited accessibility. But is it time that we take a long, hard look at ourselves around some of the issues that make it difficult for first-time users to invest in or use crypto for everyday transactions ?
This was a (paraphrased) text Janine Grainger, Founder and CEO of Easy Crypto, received from a friend recently after watching ‘WTF is crypto’: “I get it - crypto is this amazing tech and you’re telling me it’s the easiest, fastest way to transact…but then you’re telling me to write down 12 numbered phrases and to either memorise them or save them in a vault. That’s pretty primitive!”
And she’s not wrong!
Looked at through a different lens, crypto has some serious barriers to entry that can deter potential investors and users from joining the digital currency revolution; and it’s time we owned and addressed them.
What are ‘crypto woes’?
Crypto has undoubtedly been the answer to many ‘banking woes’. It provides an alternative to traditional banking by offering decentralisation, lower transaction fees and quicker cross-border transfers. But even as it addresses some of these long-standing issues, it introduces new challenges that have come to be known as ‘crypto woes’.
Two of the biggest of these are volatility and complexity. The price of crypto and digital assets can fluctuate wildly over short periods, posing challenges for real-world use cases and widespread adoption. In addition, managing various coins, understanding multiple blockchains and dealing with the intricacies of digital wallets can feel like navigating a maze without a map.
Making the ‘onramp’ easier
The good news is that amongst the innovators in industry, significant work is being done on creating a more seamless ‘onramp’ to crypto and these innovations are helping to provide a clear path for overcoming the fear of first-time use and simplifying the everyday use of crypto.
Stablecoins: a perfect fit
The first of these is stablecoins - a category of crypto backed by reserve assets, such as fiat currency or precious metals. They have gained popularity for their ability to combine the rapid transaction processing, security and efficient features of crypto with the reliability of the underlying asset.
Stablecoins offer a solution to the problem of volatility because these digital assets are ‘pegged’ to traditional currencies, such as the US Dollar (or, as is the case with NZDD , Kiwi dollars), and are designed to maintain a stable value. By bridging the gap between the crypto and fiat worlds, stablecoins provide a reliable foundation for entering the crypto market. They also make it a doddle to send money overseas - they’re available 24/7, faster than banks and cheaper than money exchangers/remittance businesses.
User-friendly wallets: a simplified approach to crypto management
Next we come to securely storing your crypto. Crypto wallets have also come a long way in terms of addressing the issue of complexity. Managing your crypto shouldn’t be daunting; and you certainly shouldn't need a collection of different wallets.
For both new and experienced crypto users, there is a new breed of user-friendly wallet that streamlines the management of crypto and tokens. They allow users to buy, sell, and store digital assets in an easy, secure and accessible way - with unlimited sub-wallets, multiple blockchains and a broad breadth of coins backed by state of the art security - all within a single simple app.
What’s more, worrying about losing keys (your 12 word ‘seed phrases’) is a thing of the past thanks to the cutting edge security and recovery features of some wallets. In some instances, your family and friends become your safety net rather than having to note down or remember seed phrases or digital keys.
Importantly, these wallets are self-custodial (with the benefit of recovery) which means users hold their own coins, not their exchange, just like they would their own traditional wallet!
As an industry, it’s essential that we not only resolve the long-standing challenges associated with traditional banks but also drive broad crypto adoption through continuing to eliminate barriers. With innovations such as stablecoins and user-friendly wallets leading the way, the future of crypto is set to be far more inclusive.
Disclaimer: Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.