Why Vitalik’s recent tweet on crypto adoption makes absolute sense
With all this talk about Bitcoin ETF applications getting rejected and waiting to be approved, the founder of Ethereum, Vitalik Buterin, started quite an interesting topic on his Twitter feed yesterday. Raising the important question of why everyone is focussed on the approval of the ETF applications when it is in fact, not going to increase adoption rates, rather than looking for ways to pump up the price.
He emphasizes that the real push should be given to drives that make it easier for people to buy into the cryptocurrency market with $5-$100 dollar investments at corner stores, using their cards.
I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.
— Vitalik Non-giver of Ether (@VitalikButerin) July 29, 2018
His question started quite a conversation on his thread with people vehemently discussing the hows and whats of the situation and whether they agree or not, as usual. But the question he raised is an important one. Why is everyone so worried about ETFs when the common man still can’t buy a cryptocurrency asset at a corner store?
Here are five reasons why we should be making cryptocurrencies more accessible before making bids and applications to the regulatory bodies to approve ETF licenses.
1. Alternative Financial System
Bitcoin introduced the world to an alternate way of doing business. It took the financial market, which is highly influenced by the government and other external factors, annihilated them with its peer-to-peer philosophy and gave the world a decentralized option when the trust in the government and its functioning was in doubt.
The industry has more than proven itself in terms of technology and community, the only thing it actually lacks is regulation and in turn stability. But with the world moving towards a more digitally inclined existence, getting in bed with the cryptocurrency market is not such a bad idea. Which is still a very exclusive community, if the world is looking at going truly digital, it will have to make and bring the community within the reach of the entire population.
2. Promising Introduction to IndustryMost economies are moving full speed towards becoming cashless and paperless economies. Which means that a lot of what used to happen in cash is going digital with the introduction of cards, online wallets and UPIs. These options have been quick to the uptake because of their ease to use and their accessibility.
But in terms of new technology in the digital transactions industry, the introduction of the cryptocurrency market is the most revolutionary. It shows a lot of promise and potential as an alternative financial system if and when the right regulations to allow it come into play.
3. Fraudless Environment
The existence of banks go back centuries now. People tend to store their money in banks that provide you with that service among many other. Though it seems rather straightforward, a lot of the functions of the bank happen on the basis of trust between the bank and the account holder.
And many times in the past, that trust has been violated by breaches, fraudulent transactions, embezzlement and impersonation that has led to a loss of funds. This is something that the cryptocurrency environment annihilated with multiple levels of required verification and authentication but mainly by storing everything on the blockchain.
The blockchain is a immutable, distributed, open ledger. No transaction can be hidden or reversed. So if there is any fraud, there will be clear indication of it and can be nipped in the bud.
4. Retention of Control
Probably the most revolutionary thing that the cryptocurrency market and industry introduced to the world and financial industry in particular, was the removal of the central authoritarian structure.
It made each participant the sole point of control of all their assets, wallet and transactions and at the same time, made them responsible and answerable to and for its safety. The ecosystem in turn also shared the responsibility of keeping the environment up and running with its participants with its peer-to-peer network principles, mining methods, etc.
The user is the sole owner of her/his account, wallet and also has a sense of ownership, responsibility and control over the ecosystem.
5. Fast Growing
The Bitcoin and the blockchain’s use for financial transactions was the baby of the Great Recession. Whether it was a coincidence or a well-timed introduction, the cryptocurrency market provided an out to traditional banking systems that monumentally failed the world’s economy in 2007.
A lot of people got on the crypto-train in spite, but others have been more deliberate in their move towards the cryptocurrency industry and market and hold the sole onus of making the industry as big as it is today.
Apart from an obvious increase in the price of Bitcoin, there is a lot of parafilia that the industry has generated. Like the controversial ICOs that are well on the way to becoming the new IPO process, the introduction of a new technology for storing important information that is penetrating the healthcare industry and other industries where accuracy is primal and more recently ATMs.
Bitcoin ATMs are becoming more and more common in the US and Canada, with an increase in almost 1,100 ATMs in the time span of the last two years. So it is safe to say that the industry has a large amount of potential and is living up to it in terms of growth and any industry that grows is profitable.