It is true that there are many advantages associated with the use of cryptocurrencies and crypto tokens over the traditional bank noted that are issued by a countries Central Bank. Some of them which includes speed of transactions, lower cost of transactions, lower documentations, comfort of transactions location, environmental protection since it is paperless and others.

Irrespective of this gains of cryptocurrencies over the traditional bank notes, it could be seen that the rate of penetration and acceptance of cryptocurrencies has not be more pronounced when compared to what the internet revolution of early 90’s was able to achieve.

1) The market is not regulated: this is a major challenge in the crypto community since their are institutional and individual investors that the crypto market will not be able to attract unless the market is regulated so as to gain the trust of both the government and this investors. This fund is needed in the market to penetrate to unreached regions and also invest in continuous research for the development of the market.

2) High volatility index: no one invest with the aim to encounter losses. Unlike in stocks where the beta value could be known before an investor would know whether to invest or not. Cryptocurrencies has no beta value and an investor could loss his entire investment within a negative market trend.

3) Increase in scam ICO’s: although the government is fighting to reduce the presence of scams with some associations formed that could attest to the profitability of a project before the public could be allowed to invest in them. The rise in the number of dead coins and tokens is serving as a hindrance to investors to invest in them.

4) Political instability: some governments opposes the cryptocurrency created in a given jurisdiction in other to score a political or regional point. This is not healthy for the expansion of the crypto market. Also, in some areas, there is outright ban in all cryptocurrency activities.

5) Hacking and cyber crimes: there is a growing number of people that had lost there investment through hacked account. Such funds are not insured hence the individual takes the full responsibility for it. This is unlike traditional bank services where depositors fund are insured.

The post Factors hindering the wider Adoption of Cryptocurrency appeared first on ZyCrypto.

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