Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Cryptocurrency has come a long way since 2018. After a major crash following the ICO scams that were abundant in the industry, this financial field has had an impressive few years. Yet, adoption is nowhere near where it could be for this industry.
In fact, November 2022 has some of the worst statistics for the perception of cryptocurrency to do. While in March, around 50% of Americans had either a positive or neutral view of crypto, that number has fallen to only 24%. Right now, only around 8% of Americans have a positive view of cryptocurrency, with nearly 43% having a negative one.
With the recent FTX exchange news causing another massive downturn for cryptocurrency, those that are within the market are facing a period of panic. While the industry spirals further into a crypto winter, people are withdrawing their money faster than ever before. With slowed adoption, a falling market, and a declining market cap, many people see this as the end of crypto.
Yet, an equal number of people see this moment of crisis as a turning point. There needs to be something that shifts the public perception of cryptocurrency and its applications. We believe that this force of change lies in cryptocurrency education, with accessible knowledge leading the way toward adoption and a rebound in price.
In this article, we’ll take a look into the current state of cryptocurrency education, demonstrating how accessible academies, workshops, and public information will help to bolster adoption as we move into 2023.
Why is Cryptocurrency Adoption Currently Flagging?
There are three main reasons that cryptocurrency adoption is currently at a three-year low. Each of these has a core part to play in the current status of the cryptocurrency market.
Across the board, the three factors that cause people to stop getting into crypto are:
- Knowledge Barriers
- Social Barriers
- Economic Barriers
Let’s break these down further.
When people don’t understand something, there is very little chance that they’re going to invest or get involved with it. As it currently stands, the vast majority of people don’t understand blockchain or any of its deployments. Their only experience with this system has been through the news, which often frames the industry in a negative light.
Until people have a way to learn about cryptocurrency in a way that is intuitive and makes sense to them, getting up to speed with this new technology can be an uphill battle. We need to pave the way for beginners to learn the basics before plunging them into the most complex areas of blockchain.
And, as the market currently stands, not many people are going to put the work in to find obscure resources. They need to be available and readily accessible.
Currently, there is little faith in cryptocurrency. The entire industry has devalued by huge margins over the past 12 months. While crypto was reaching the 3 trillion USD market cap level this time last year, it is now down at around $870 billion, having eroded nearly 70% of its value.
Alongside this crypto winter, the continual loss of money, investments, or entire systems due to fraudulent or irresponsible projects, like FTX, has sent further doubt throughout the community. Without clear insight into why cryptocurrency should value more, people simply don’t see the need to invest in this financial medium.
Until people turn the tide on the perception of cryptocurrency, adoption will continue to be staggered.
Bear markets are a rather difficult environment for any financial medium to navigate. Once the central stock exchange starts to fall down, as we’ve seen it do over this past year, other industries start to see knock-on effects. This is no different from cryptocurrency, which is currently in a tailspin.
When crypto was in a bull market, it was easy for new investors to jump on board. Even if they didn’t understand cryptocurrency or why it was going up, everyone wanted a piece of the pie. Without this economic incentive, people aren’t bothering to invest their money anymore.
In order to change this, the cryptocurrency industry needs to make sure that people fully understand the reasoning behind crypto. To achieve this, alongside rectifying the other issues we’ve outlined, we need to turn to education.
How Can Crypto Education Help to Overcome These Issues?
The knowledge, social, and economic barriers that prevent the adoption of cryptocurrency have one common thread between them all – a lack of understanding. When tested on cryptocurrency literacy, as little as 4% of Americans actually understand the basics of crypto and how it can be used.
Without a true understanding of crypto, people fail to grasp the functionality it brings, and overlook the power it has to radically shift our future technological prospects. More and more Web 3 companies realize that education needs to be a priority, with brands like AAG Academy starting to offer jargon-free reading materials.
By giving people the tools and resources that they need to understand cryptocurrency, we can start to synergize the industry and boost adoption. Let’s look at how education can lead to an increase in adoption by overcoming each of the aforementioned issues:
- Knowledge Barrier – Educational platforms like AAG allow people to learn about cryptocurrency in a controlled environment. By participating in modules and moving through articles, they can focus on beginner content and build up a stable base of information. From there, they’re much better prepared to understand cryptocurrency news and the context that goes into it.
- Social Barrier – The lack of faith in cryptocurrency is, in part, due to the lack of understanding about the currency. As the crypto market is currently falling, people who don’t understand its value assume that the total market cap is a reflection of the industry’s potential. By educating people about cryptocurrency and its actual functions, we are able to outline exactly why it still has value, despite what the current market may say.
- Economic Barrier – As people see the value of cryptocurrency through their education, they will realize why investing is a good idea. Especially with the lower values that the market is currently experiencing, now is a fantastic time to start investing in the future.
Education will outline the practicality and utility of cryptocurrency, helping those that do not understand this market to see its true value. From there, education will help people overcome their fear of a new technology and see the benefits it could hold.
An investment into Web 3 education is one that will dramatically help with overall adoption.
Projects that provide a method for the general public to access high-quality learning materials around cryptocurrency are paving the way to mass adoption. No matter how radical or innovative a technology is, if people simply don’t understand how it works, they’ll never be ready to put their faith in this system.
The same goes for an economic standpoint. People are going to be much more willing to invest in something if they understand why it’s valuable and what it brings to the table. Companies like AAG are streamlining the pathway for adoption, giving people easy-to-comprehend information that will accelerate total crypto adoption by years.