Cryptocurrencies have taken the financial world by storm since their inception. Despite all the limitless possibilities that cryptos provide, their acceptance among the general public is still relatively low. The trust in the fiat is still slightly greater than cryptos in the mainstream as of now, but that does not necessarily mean that the fiat system is perfect. Many countries such as Iran and Zimbabwe are already facing breakdowns in their traditional financial structures. Digital currencies provide prospects that can surely overcome these problems faced by traditional fiat frameworks.
Talking to BlockPublisher regarding the situation of acceptance of cryptos, the founder & partner at Morgan Creek Digital Assets, Anothony Pompliano stated:
The mainstream is slowly being forced to accept digital currencies as their fiat systems implode. Today we are seeing this in Venezuela, Iran, Turkey, Zimbabwe, etc. The problem revolves around the fact that humans will always print money as long as they have a way to do it.
The major reasons behind the lack of acceptance of these digital currencies are lack of regulation, lack of stability, prevalence of large-scale manipulation, volatility etc. Cryptos as of now are only being used by the people as means of gaining profit in fiat. Owing to the prevalence of illegal activities, the trust among the general public regarding the usage of cryptos as actual currencies is very low.
The need of the hour is to build trust among the public regarding cryptos. Proper financial frameworks alongside official acceptance are needed for cryptos to go mainstream in global financial world. Developments of global ecosystems for storing, buying, selling and spending digital currencies like Bakkt will help launch cryptos into mainstream. Acceptance on an official level in the form of developments like establishment of crypto-linked exchange-traded funds (ETF) will further help this market get more mature and stable. Such steps will also ensure participation of institutions in this game. With institutional money pouring in, the crypto world is surely going to pump up the gas on its growth.
Just like every other technological innovation, time is needed for this nascent market to go mainstream. In order to get full benefits from the prospects offered by new technological innovations, the people need to trust in the algorithmic world.
Adding on to his statements, Anthony stated:
The acceptance of Bitcoin as a currency will be driven by humans learning to trust machines.
But this trust cannot be established until the issues like manipulation, lack of regulation etc, that destroy the reputation of this market, are solved.