Why aren’t more people buying bitcoin? You might have asked yourself, especially in the course of the long horrendous bear market since mid-2017. You might think all the upsides of the Bitcoin network such as it’s immutable, it’s decentralized, it’s tamper-proof, it’s going to the moon someday, and everyone is going to use it.
The main reasons can be boiled down into six reasons:
- Bitcoin and cryptocurrency are perceived to be too risky — Due to the historically high volatility, the cryptocurrency market is simply perceived to be too much of a risky play. Cryptocurrency exchanges are still a headache due to unworthiness and lack of security.
- People do not know how cryptocurrencies work — Most people can’t differentiate between blockchain and cryptocurrency. They can’t understand the technology backing cryptocurrency that may disrupt multiple industries.
- Cryptocurrency regulation — Countries are trying to figure out the best way to define and regulate cryptocurrency. The United States is still figuring out the best way to make cryptocurrency legal while preventing criminal activities. Canada has taxed them since 2013, and more regulation is on the way. Japan is leading the way with its strict regulations to balance between consumer protection and technology innovation.
- Too difficult or complicated to buy — There is still a pretty high barrier to enter compared to other payment methods (credit cards, Apple Pay, PayPal, etc.). If the current payment methods are working so well, what is the need of cryptocurrency?
- Negative stories — There have been too many hacks towards cryptocurrency exchanges, public blockchain, and crypto wallets. All of these lead people to have a negative perspective on cryptocurrency. Also, there are too many ICO scams.
Time Can Solve Them All
Primarily people perceive cryptocurrency as unworthy (at the current stage) and risky. Their misconceptions are just a matter of lacking education. With education, it would address their lack of knowledge of how cryptocurrencies work. It would address how to buy cryptocurrencies. It would address their perceptions like negative stories. Many of these could be solved by proper education.
Other key factors, like too risky to buy and not regulated, can and will be addressed simply with a matter of time. The current cryptocurrency market is relatively small. Imagine if the SEC has approved bitcoin ETF, millions will pour into the cryptocurrency market. With such a vast market, the price would not be as volatile. In terms of regulation, we know that eventually there’s going to be bitcoin ETF and ethereum ETF. There’s going to be all different ways for people to have safe and reliable trusted exposure to cryptocurrency in some way. Countries have slowly set regulations on how to tax cryptocurrency and legally use cryptocurrency.