What Would Mainstream Crypto Adoption in the US Look Like?
Despite all odds (and there are many), mainstream crypto adoption is increasing in the US. Key findings from Security.org’s 2024 Cryptocurrency Adoption and Sentiment Report state:
40% of American adults own crypto, up from 30% in 2023.
After many years of the crypto scene’s “old bro’s club”, women's investment in cryptocurrency is picking up. Considering women still make most of the household purchases, their entry into crypto is a significant trend to watch.
While we are still a few years away from widespread crypto use, it could be here sooner rather than later as the government and traditional finance figures out how to include crypto in ways that capture it’s innovations yet don’t upset the foundations of TradFi, at least not too much.
What Would Mainstream Crypto Adoption in the US Look Like?
Mainstream adoption of crypto refers to a day when crypto use is as common and essential as using the internet today. Similar to how the internet was once only available to a few people due to high costs, but now is a part of everyday life, cryptocurrencies could follow a similar path.
Currently, online banking can be slow and costly due to outdated systems. For example, it is ridiculous that many legacy banks don’t process transactions on weekends or bank holidays, as if a clerk behind a curtain somewhere has the day off.
Some payment services delay payroll to earn money on the float. Also, banks charge high fees for things like sending international payments and converting currencies.
Imagine a world where you could send money to anyone, anywhere, instantly and almost for free. Some companies, like Wise and Revolut, are working on this today. It’s not perfect yet, not by a long shot. When I lived in Mexico City, I spent hours getting my accounts and ID verified to open a Wise account. I was able to make one transfer from my US bank to Banco Azteca, only to be notified the next time I tried to transfer money that Wise wasn’t able to complete transactions with Banco Azteca anymore.
The time-wasting friction of hassling with cross-border financial (and long-term cell phone issues) was one reason I moved back.
In a world that has crypto and KYC figured out, you wouldn't have to wait for your paycheck to clear after a weekend or holiday. Getting a loan could be done in minutes. The dreaded April 15 tax deadline could be a thing of the past when taxes become a simple, automatic process.
However, several challenges must be overcome for this to happen.
Challenges to Crypto Going Mainstream
While crypto is gaining popularity, some big obstacles still stand in the way:
Price Fluctuations: Cryptocurrencies can change value quickly, making people nervous about using them compared to more stable traditional currencies.
Regulatory Uncertainty: The rules around cryptocurrencies are not fully developed. Without clear guidelines from the government, businesses and people are hesitant to dive in.
Merchant Acceptance: Not all stores accept crypto yet. Even big companies like Amazon have paused their crypto-related plans, waiting for more straightforward regulations.
Security Issues: There are concerns about the safety of using cryptocurrencies due to hacks and scams. High-profile incidents make people wary.
Lack of Understanding: Cryptocurrencies are still confusing for many people. The complex nature of crypto wallets and transactions discourages new users.
For cryptocurrencies to become a regular part of our lives, these challenges must be addressed through better technology, clearer rules, and more education for users. What do you think? Will we ever see cryptocurrencies accepted everywhere?
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