The COVID-19 pandemic has entirely changed our daily operations. Even the most basic tasks like going to work or dropping our kids at school have changed over one year. Offices, schools, banks, even grocery shopping, has moved online.
With people locked-up in their houses, the economy has taken a dip in most parts of the world today. However, the pandemic has not been bad for everyone; for some businesses, it has proved to create a rather positive impact.
The sales of laptops, tablets, and mobile devices have seen a steady growth rate during this time. Amazon has revealed that it has had record-breaking sales of gadgets, electronics, and hardware equipment such as coaxial cables during the past year.
Another area that has seen a steep rise in demand and popularity is the cryptocurrency industry. Crypto-currency has become a haven for people and has created a positive impact on economies as well.
Digital currencies have widely become popular in today’s era; however, certain issues are becoming more prominent with the growth in popularity. An important issue is the identity verification process and the tedious process that one has to go through to purchase cryptocurrencies.
6 Reasons Why Cryptocurrency Is Not Easy to Adopt?
Below are some reasons why identity verification has made it difficult to adopt cryptocurrency on a mass-scale.
1. Lack of Clarity
A major issue that cryptocurrency exchanges portray for the buyers is the lack of clarity. Since it is a new and developing field, people who are in charge of cryptocurrency themselves are not clear about digital currency. Investors and developers don’t agree on the rules of cryptocurrency, and many still remain undecided on the difference between a utility token, an equity token, and a security token. There are so many questions like these that are left unanswered. If the people working for cryptocurrency are unable to answer such questions, then how is the layman supposed to understand the technicalities?
2. Too Much Variety
Having variety in your business services and products is great, but not when it comes to cryptocurrencies. Did you know there are almost 1800 cryptocurrencies active in the market today? They all differ in functionality and are not equal either. Having too many cryptos at hand has made it difficult for a plan which would help in the mass adoption of digital currencies. With so much to choose from, how can one expect a layman to make his decision and know which one would work best for him?
3. Difficult to Use
Cryptocurrency management may be complex for the majority of masses. Usability has become a major hurdle in cryptocurrency adoption. People nowadays want convenience, which is why they opt for easy passwords, keep themselves logged in onto their accounts, and take no security measures whatsoever. Moreover, the older generation is not well-versed with technological uses. They prefer automation over entering long and complicated passwords to access their cryptocurrency accounts.
4. Slow Speed and Verification Process
Completing the cryptocurrency verification process can be quite frustrating. You may have to choose a strong password, choose from endless security questions, scan your documents, and upload pictures too. Each step requires a verification process and can result in days of delay at a time. Delay can be caused if the employees are manually checking each entry.
The worst-case scenario would be that the customer’s application would be rejected even after the long sign-up process. This can surely kill the enthusiasm of the customer, and they may never even attempt to sign-up again.
5. Security Threats
Similar to any other form of digital technology, cryptocurrency also has its fair share of security threats. There have been numerous cases in which cryptocurrency exchanges get hacked, and funds are lost. Due to the lack of regulations from the concerned authority, investors could lose their money without much of an explanation.
Therefore, before you invest, you must carefully go through the terms and conditions and be careful of any external attacks. However, more recently, there have been laws put into place, which make the future of digital currencies more promising. The lack of regulation in this sector is keeping a lot of investors at bay. If this aspect is sorted, a mass conversion to this form of currency can be expected.
Cryptocurrency, such as Bitcoin, has also seen criminal association with its name. Bitcoin is known to be one of the most popular forms of payment for criminals who were part of ransomware attacks back in 2017. Such incidents have caused a dent in the reputation of digital currencies.
Identity Verification Technology – A Ray of Hope
The identity verification technology is a ray of hope for the cryptocurrency industry. This technology can help those businesses who are dealing with digital currency to provide their customers with a thorough identity verification process and to make the process convenient too. Users no longer have to enter their details to prove their identity. They can simply scan their faces through biometric verification and confirm their identity to the system.
The COVID-19 pandemic has also made banks review their business structure. There are very few banks that are still practicing face-to-face account set-up. Several tools have made cryptocurrency exchanges simple. The document verification process is now faster and requires only a few clicks. Customers are no longer required to wait for days for their documents to be verified.
It is the responsibility of those people who are working in the cryptocurrency industry to ensure that their customers go through a fast and pain-free process. It is also the ethical responsibility of cryptocurrency providers to ensure security and make the process safe. Once the business-client relationship starts on the right foot, the digital currency world is bound to grow bigger in the future.
The difficult verification process is not the only reason why cryptocurrency might be difficult to adopt. It might become difficult to change the mindset of people and convince them to adopt digital currencies. This is also a big reason why this form of currency is not being use by the masses. This technology might pick up the pace once the cryptocurrency providers promise faster and more sustainable solutions to digital currency exchange.
Shaheryar provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for Shireen Inc.