A recent study out of Cambridge showed that the current number of active users holding cryptocurrency wallets is over 3 million, conservatively.
With so many people actively using or collecting cryptocurrency, the marketplace has all the hallmarks of a booming industry that could one day compete with Wall Street. In fact, as of August 29, 2017, the total cryptocurrency market capitalization reached $164 billion, more than 800 percent higher for the year. And that number is only growing.
But like most new industries, cryptocurrency faces unique challenges the most prominent of which is adoption.
ROADBLOCKS TO ADOPTION
While forward-thinking financial institutions are looking for ways to incorporate cryptocurrency on a global scale, everyday investors are not sold on it just yet.
On each end of the bell curve, you have those people who will seek to hoard currency in hopes of a steep rise in value, while others won’t adopt it at all because it’s so unpredictable. In the middle, there are those that will come around to carefully dabbling in this new marketplace.
And while investment habits vary sharply, one common factor is that most people do not see the unstable market as a “real” economy made up of actual currency.
Another roadblock involves security. When buying or selling cryptocurrency for national currency (FIAT), all traditional exchanges require crypto to be held by the exchange, in a wallet managed by the exchange. This presents a lucrative target for hackers, which have been extremely successful in stealing user funds from online wallets and online exchanges.
All things considered, it makes sense that the average investor is proceeding with caution.
The average investor may be cautious, but the greatest minds in finance see the market moving like a freight train and there’s no turning back. Indicators suggest it may be moving faster than the global market can prepare.
One prediction is that Bitcoin and Ethereum will stick around and new altcoins will emerge to give them a run for their money. But a strong demand for Bitcoin and Ether will prevail over the next 4 years, with growth that is projected at 300% and 506%, respectively. While that may make investors want to flock to Ethereum, Bitcoin is still the market’s most widely adopted cryptocurrency with the lowest market volatility.
Adoption is harder to predict than growth, due to the roadblocks listed above and the notion that banks and other financial institutions are unlikely to adopt Bitcoin or Ethereum. Instead, banks will likely adopt the tenets of Blockchain technology to their own regulations.
Cryptocurrency is poised to become a major player in the global economy, with a potential reach that is not yet fully known. However, the good news is that investors who understand the growth prospect of ICOs and how they can hedge risk by taking advantage of a groundbreaking solution called Javvy to get in on the front of something big.
Among many benefits, Javvy decreases security risk by offering an exchange that users can trust. For instance, the Javvy solution does not force users to “store” user private keys, banking information, or currency balances. Furthermore, Javvy is not web-based thus avoiding the most common point-of-attack for theft and loss.
Indeed, this is the network the market’s been waiting for that addresses a major roadblock to mainstream adoption by placing compliance at the forefront of a disruptive technology.
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