Why Crypto Has an Image Problem?
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Cryptocurrencies have had a bit of an image problem since their emergence in 2009. Despite their potential to revolutionize the traditional financial system, crypto have been associated with hacks, scams, and criminal activities. This has caused the majority of the people to be wary of investing or using cryptocurrencies, and has surely hindered the growth of the crypto industry.
In this short article, we will explore the various image problems that cryptocurrencies have, and how they can be fixed.
First, one of the biggest image problems that cryptocurrencies have is that they’re heavily associated with criminal activity. This is primarily due to the fact that cryptocurrencies are often used to facilitate transactions on the dark web. As cryptocurrencies are not regulated by any central authority, they provide a platform for criminals to conduct illicit activity. This has created an association between cryptocurrencies and criminal activity, which has made some people wary of investing in them. On the last few years, we have seen a lot of the so-called Crypto-Ransom, when a computer becomes unusable and its files unreadable in order to extort money from the owner; the payment of the ransom is, obviously, made through cryptocurrencies. Even governmental institutions have been targets of this kind of scam.
How to fix this? I honestly don't know. The transactions through crypto are already conducted in a secure and transparent manner. But what else can be done? Especially on decentralized cryptos (like Hive), I don't see much else that can be done to avoid cryptos being used by criminals, similarly as I don't see anything else that we can do in order to avoid criminals using fiat currencies to do illegal activity.
Another major image problem that cryptocurrencies have is that they’re seen as a speculative asset. This is due to the fact that most people view cryptocurrencies as an investment vehicle, rather than a currency. As a result, people tend to focus on the short-term price movements, rather than the long-term potential of the technology. This has caused some cautious people to view cryptocurrencies as a high-risk investment, which has made them hesitant to invest in them.
To fix this, the cryptocurrency industry needs to focus on increasing its usability and utility. This can be done by providing more real-world applications for cryptocurrencies, such as making payments at stores or online. This will help to shift the focus away from speculation and towards the long-term potential of the technology; nonetheless, more concerned investors will stay wary about cryptos as they can fluctuate in price too fast and too quickly.
Finally, another image problem that cryptocurrencies have is that they’re seen as difficult to use. Despite the fact that cryptocurrencies have the potential to make financial transactions more efficient, many people find them difficult to understand. This is due to the technical nature of cryptocurrencies and the fact that there are many different types of digital currencies. As a result, some people are hesitant to invest in them, as they feel overwhelmed by the complexity of the technology. To fix this, the cryptocurrency industry needs to focus on making the technology more user-friendly and accessible. This can be achieved by providing more educational resources, such as tutorials and videos, which will help people to understand the technology in an easy and straightforward manner. Additionally, cryptocurrencies should ensure that their platforms are intuitive and easy to use.
Let's think about Hive: a new user is bombarded with dozens of technical terms (Hive Power / HP, Liquid Hive, $HBD, 2nd Layer Tokens, Savings, Resource Credits...) and have to use several softwares (like the browser plugin "Keychain for Hive") in order to enjoy all the benefits from the blockchain. How can we expect that everyone, including the elderly and less tech-savvy people, to get into Hive when it's really difficult to understand what's going on as a newbie?
Cryptocurrencies have had various image problems that have hindered their growth in the past. These include their association with criminal activity, their status as a speculative asset, and the difficulty in using them. However, these problems can be fixed by taking steps to ensure that transactions are conducted in a secure and transparent manner, increasing the usability and utility of cryptocurrencies, and making the technology more user-friendly and accessible. By doing this, the cryptocurrency industry can help to build trust and encourage more people to invest in digital currencies.
Thanks for reading this post, and until next time!
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