Disclaimer: The Industry Talk Section contains information from players in the crypto industry and is not part o the editorial content. Cryptonews.com.
Cryptocurrency has made incredible progress over the past year. Since 2018, the industry has seen major advancements and investment. Yet, adoption is still far from ideal.
In November 2022, only 24% of Americans responded with a positive or neutral opinion of cryptocurrencies. This is a sharp decline from the 50% that held the same sentiment in March. Even more worrying, just 8% of Americans have a positive outlook on cryptocurrency.
The recent news of the FTX fraud has caused another major cryptocurrency downturn. The crypto winter is in full swing and people are withdrawing more quickly than ever. With slow adoption and the market capitalization dropping, many people fear the end of cryptocurrency.
However, a similar number of people view this crisis as a turning point. In order to change the public’s perception of cryptocurrency and its applications, knowledge is key. This article will explore the state of cryptocurrency education and how it can lead to adoption and a rebound of price.
What Causes Crypto Adoption to Stall?
There are three primary reasons why the adoption of cryptocurrency is low. Each of these has a significant role in the state of the crypto market.
The three main inhibitors of people investing in cryptocurrency are:
- Knowledge barriers
- Social Barriers
- Economic Barriers
Knowledge Barrier
When someone is not familiar with something, they are unlikely to invest or engage with it. The majority of people don’t know anything about blockchain and its implementations. It is not something they have personally experienced and often the news portrays the industry in a negative light.
In order to have more people invest in cryptocurrency, there needs to be an intuitive way for people to understand the basics of blockchain before they dive into more complicated areas. It must be easily accessible; people won’t go to great lengths to find information.
Social Barrier
Cryptocurrency has a low amount of trust due to the recent market decline. Market capitalization has dropped from $3 trillion to $870 billion in the last 12 months, leaving many people questioning why it should be worth more. This has caused people to be wary of investing in this financial medium.
In order for adoption to continue to grow, people’s perception of cryptocurrency needs to change.
Economic Barrier
Navigating financial markets can be difficult. Over the past year, when the central stock market started to decline, other industries experienced similar effects. This is the case with cryptocurrency, which is currently in a downward spiral.
With the lower values the market is currently experiencing, people don’t understand why they should invest their money. It is essential to educate people about cryptocurrency and its functions so they understand its value despite the market’s admonition.
How Crypto Education Can Help
The common thread that unites the economic, social, and knowledge barriers to cryptocurrency adoption is a lack of understanding. To be crypto literate, you need to comprehend the basics of cryptography and how it can be utilized. It is difficult to gain a true understanding of cryptocurrency without experiencing it.
Fortunately, with organizations like the AAG Academy, it is now possible to access non-jargonal reading materials. By providing people with the resources and tools they need to understand cryptocurrency, we can create industry synergies and encourage adoption.
Education can help people overcome fear and recognize the potential benefits of this new technology. It will teach them how cryptocurrency works and why it has value. Here are some ways education can help increase adoption:
- Knowledge Barrier – AAG allows people to learn about cryptocurrency in a controlled environment. Participating in modules and reading articles equips them to comprehend cryptocurrency news and its contexts.
- Social Barrier – Partly, a lack of understanding of cryptocurrency may explain why people are skeptical about it. We can educate people on why it has value despite the market’s decline.
- Economic Barrier – If people can see the value in crypto through their education, then they will understand why investing is a good idea. Investing in education is a powerful way to increase overall adoption.
Projects like AAG are opening the door to mass adoption by providing a way for the public to access high-quality learning materials on cryptocurrency. No matter how revolutionary or innovative technology is, if people don’t understand it, they won’t be able to trust it.
Economically, the same holds true. If people are aware of the why and what of something, they will be more inclined to invest in it. Companies like AAG and other organizations are making it easier to adopt crypto by providing easy-to understand information that will help accelerate adoption.
