No other asset or innovation has influenced the world of finance the way crypto did over the past few years, and we can safely say that no one saw it coming. It almost seems like the crypto hype materialized out of thin air – a decade ago, the concept of digital currency was completely foreign to most people, and then, all of a sudden, we were all watching the Bitcoin revolution unfold, paving the path for the emergence of a wide range of cryptocurrencies that would later become known as altcoins.
Then we all know what happened: Bitcoin went through multiple ups and downs, taking traders on a wild rollercoaster and gaining worldwide popularity. But despite the constant BTC price fluctuations, the number of followers kept increasing, establishing the coin as the leader of the crypto sphere – a title that it still holds to this day.
Plenty of other digital assets were created, trying to mimic Bitcoin’s success. Some became quite popular and managed to attract investors’ attention, while others remained relatively unknown or enjoyed a very short time in the spotlight.
And here we are today, looking at an ever-growing crypto industry that’s becoming more influential with every passing year. There are over 300 million people using crypto worldwide at the moment, and many more will adopt digital coins in the future.
Right now, the most important question is not whether cryptocurrencies are just a passing fad or they’re here to stay. It’s become pretty clear that the only way for cryptocurrency is upward, and they’re not going anywhere. The issue everyone should focus on – both stakeholders and individuals – is how to approach the rise of crypto.
Whether we like it or not, digital currencies are now a part of the global financial system, and some go as far as saying they represent the future of finance. So, while we cannot predict how the crypto industry is going to evolve, given its novelty and inherently volatile nature, we can make sure everyone is ready to navigate the crypto sphere, and that involves getting properly educated on the topic.
Breaking barriers to usage
It seems like everyone is trading cryptos these days, but that’s not necessarily the case. Indeed, the number of crypto traders and investors continues to increase as the market expands.
However, a large percentage of the population is still reluctant to use cryptocurrencies, given the perceived complexity of the field. Let’s not forget that cryptocurrencies represent a financial innovation that’s still in its infancy, and many people are completely oblivious about how it works or how it can benefit them. The lack of knowledge on the topic makes a lot of people shy away from using cryptocurrencies.
That’s the case with every innovation ever made. The birth of the internet offers a prime example in this regard. It took time for people to get familiarized with the technology and understand the advantages it provided.
Decades later, the internet has become an integral part of our lives. The same thing is happening now with cryptocurrency. Very few people are eager to learn the ins and outs of a new technology that seems extremely complicated at first glance. Most would rather stick to the traditional assets they’ve used all their lives, but that would limit their options.
Crypto education can arm people with the knowledge and skills they need to become proficient crypto users. The more knowledgeable they become, the easier it will be for them to enter the crypto sphere and navigate it confidently. A larger and more stable user base will also help decrease crypto volatility, which is another major deterrent for traders and investors.
In recent years, more businesses have started accepting digital assets as a form of payment, and institutional interest in crypto is also on the rise, which means crypto is getting closer to mainstream adoption.
Government opposition is getting milder, and many countries have already expressed their intention to include cryptocurrencies in their financial system. Experts estimate that within the next 10 years, cryptocurrencies will enter mainstream usage, on par with fiat currencies and other asset classes.
It’s one thing to refuse to use cryptos right now, but when they become part of the local economies, people will no longer be able to ignore them. Governments should make sure their population is prepared to embrace this new form of finance to ensure smooth and frictionless adoption, and that can only be achieved by investing in crypto education and awareness.
Protection against crypto scams
Cryptocurrencies have numerous characteristics that have helped increase their appeal on the investment front, and security is definitely one of them. Digital assets have been praised for the unmatched level of protection and security they provide, being built on decentralized blockchain platforms that ensure immutability and anonymity.
However, this doesn’t mean the crypto environment is free of scams and frauds. On the contrary, the hype that’s been created around digital assets also led to the rise of crypto criminals.
These scammers have developed all sorts of methods to catch their targets’ attention or trick people into sharing their personal information or sending them money. Teaching people about cryptocurrencies and how they can differentiate a legitimate project from a potential scam can help them avoid common pitfalls and create a much safer crypto environment.
Keeping up with the times
With all their pros and cons, cryptocurrencies are not a simple trend one can ignore until it goes away. Digital assets are part of the current reality and most likely will become part of our future. It’s already been proven they have real-world value and utility, especially as an alternative form of payment and investment, as well as a solution to provide access to financial services for the unbanked in developing countries.
Therefore, educating people on cryptocurrency is simply a matter of helping them step into the future and expand their options so we can create a more inclusive and sustainable world for everyone.