Solving These 7 Challenges Will Accelerate Bitcoin Adoption in the Mainstream

Insiders involved in the Bitcoin Conference identified a number of important, compelling, and interrelated issues that are slowing down the mainstream community’s use of Bitcoin.

According to Miami BTC conference attendees speaking to Cryptonews, there are currently seven important challenges that are holding back the mass adoption of Bitcoin (BTC). However, in the future we will likely see Bitcoin used by more consumers and businesses, which will also help its price rise.

The 2021 Bitcoin Conference, a major conference focused on the world’s number one crypto project, took place June 4-5 in Miami, USA – bringing together thousands of people for an in-person crypto event, the first major event on bitcoin to be held since the outbreak.

Insiders participating in the Bitcoin conference identified a number of important, compelling and interconnected issues that are slowing down the mainstream community’s use of Bitcoin.

  1. Scalability

This is certainly not in doubt, and David Shafrir, co-founder and president of GDA Capital, the capital markets arm of the GDA Group, called it one of the biggest problems facing Bitcoin, as the network is currently unable to process a large number of transactions. Bitcoin manages about seven transactions per second (TPS), which is significantly below Visa’s 24,000 TPS cap, he said, adding.

“This does not bode well for use on a global scale, as increased usage can limit the speed of transactions and raise fees to excessively high levels.”

However, there are several solutions currently under investigation, including the Lightning Network, a Layer 2 scaling solution designed to carry more transaction data.

Solving These 7 Challenges Will Accelerate Bitcoin Adoption in the Mainstream

7-day SMA. Source: bitinfocharts.com

Matthew Gundrum, director of marketing at cryptocurrency payroll service Bitwage, also stressed that if Bitcoin hopes to gain more adoption, it will need to act as a payment system as well.

“In its current state, the transition to mass payments is extremely impractical,” Gundrum said, adding that innovations such as the Lightning Network could change that, as companies such as Strike have proven.

  1. Level of business as payments

According to BitPay’s William Zielke, mainstream business acceptance of bitcoin as a payment method is a challenge. He says 93% of crypto consumers say they want to be able to use it, but many top retailers don’t yet offer BTC as a payment alternative.

According to a recent report by BitPay, of 8,008 U.S. consumers (current, former cryptocurrency holders and non-cryptocurrency users) surveyed in February, 57% of current or former cryptocurrency holders have used it at least once in the last year, and 30% of the 59% of consumers who have never owned cryptocurrency are interested in making a future purchase . Meanwhile, a recent MasterCard international survey revealed that 40% of respondents are interested in using cryptocurrencies as a payment method.

Either way, the entire crypto industry is now focused on El Salvador, where BTC will become legal tender this September and merchants will be obligated to accept BTC at the request of their customers. however, two opposition lawmakers are reportedly aiming to change key provisions in the Bitcoin law.

  1. Price Volatility

Another issue is price volatility, which Shafrir cautions certainly won’t come as a surprise to anyone. He stressed that while many BTC proponents claim volatility is a feature, not a bug, it is a “significant barrier” to the mainstream adoption of cryptocurrencies as payments.

“While cryptocurrency veterans understand that Bitcoin has come this far as a direct result of its inherent volatility, the average investor is unlikely to be able to withstand an intraday 30% drop.”

Notably, volatility remains one of the main arguments against Bitcoin as a store of value, with Shafrir noting that “once Bitcoin reaches critical mass and liquidity increases globally, it will become even more difficult for individuals and even organizations, and only a constant push in the price of BTC will make it possible for volatility to subside. “

Bitcoin Volatility Chart.

Solving These 7 Challenges Will Accelerate Bitcoin Adoption in the Mainstream

30-day BTC/USD volatility. Source: buybitcoinworldwide

  1. legal status

William Zielke notes that El Salvador is accepting bitcoin as legal tender , which has shaken the world of cryptocurrencies and the mainstream.

He added, “Until Bitcoin is established as a currency (as opposed to a store of value), adoption will continue to be slow.”

  1. Education

According to Zielke, many consumers don’t even know they can use their bitcoin, and they don’t know how to do it. To remedy both of these, what we need to do is educate.

Again, Gundrum points out a simple fact: Bitcoin is complex, it has many elements to learn and understand, and all companies in the space must prioritize education and dispel misconceptions so that people can enter the space more safely and confidently.

  1. Regulation and self-regulation

Regulation is one of those aspects of the cryptocurrency community that not everyone agrees on – some see it as beneficial, while others see it as harmful. However, many find that decentralized systems do not fit into the regulatory framework developed for centralized systems – and that decentralization by design requires self-regulation.

Shafrir believes that regulation in all major economies remains the “biggest obstacle” to the growth of cryptocurrencies. Bitcoin is currently forced to comply with regulations and systems that were not designed with such innovations in mind – regulations that “favor incumbents over disruptors, as governments are unable to protect consumers and markets in a decentralized financial system.”

On the other hand, in traditional centralized institutions, where someone can control transactions and balances, he concludes.

“Governments around the world need to embrace new technologies and allow crypto industry leaders to develop a self-regulatory model that encourages innovation while protecting consumers.”

  1. “Harmful” community members

“The Bitcoin community feels very isolated and sometimes even harmful,” says Matthew Gundrum.

This is especially evident on social networks like Twitter and Clubhouse. While some believe that “there’s a need for people who are crazy and passionate,” it’s also important to make sure people aren’t scared off.

“Even though some say eventually everyone will use bitcoin, it doesn’t matter what the community is doing right now,” Gundrum concludes.

  1. Waiting for the price to take off

Despite the obstacles, surveyed attendees emphasized that there is strong consumer and business interest in cryptocurrencies, especially bitcoin, because the price of cryptocurrencies will explode in the future.

Gundrum said the conference hinted at what’s to come, noting the “amazing” number and diversity of attendees.

“It’s going to be a long, hard journey, but Bitcoin is one of the most important inventions of all time, and people are finally starting to realize that.” So the best answer waiting for Bitcoin is “Bitcoin is about to go to the moon.

Zielke said the biggest takeaway from the conference for BitPay is that interest from consumers and businesses is “exploding. In 2021 and 2022, the company believes merchant and consumer adoption will become more mainstream as more businesses and consumers turn to bitcoin and other cryptocurrencies as a means of doing business and transactions.

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