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Crypto Adoption Depends on Education

Disclaimer: The Industry Talk section contains insights from players in the crypto industry and is not part of the Cryptonews.com editorial content.

Cryptocurrency has come a long way since 2018. After a major crash after the ICO scams that abounded in the industry, this financial field has had an impressive few years. Still, the acceptance is nowhere near where it could be for this industry.

In fact, November 2022 has some of the worst stats for cryptocurrency perception. While in March about 50% of Americans had a positive or neutral view of crypto, yes number has fallen to just 24%. Right now, only about 8% of Americans have a positive view of cryptocurrency, and nearly 43% have a negative one.

With the recent FTX exchange news sparking another massive downturn for cryptocurrency, those in the market are facing a period of panic. As the industry moves further into a crypto winter, people are withdrawing their funds faster than ever before. With delayed adoption, a falling market and a falling market capitalizationmany people see this as the end of crypto.

Yet just as many people see this moment of crisis as a turning point. There must be something shifting the public perception of cryptocurrency and its uses. We believe this power of change lies in cryptocurrency education, with accessible knowledge pointing the way to adoption and a recovery in price.

In this article, we take a look at the current state of cryptocurrency education and show how accessible academies, workshops, and public information will help bolster adoption as we move into 2023.

Why Is Cryptocurrency Adoption Currently Delayed?

There are three main reasons why cryptocurrency adoption is currently at its lowest point in three years. Each of these plays a central role in the current state of the cryptocurrency market.

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Across the board, the three factors that make people quit crypto are:

  • Knowledge barriers
  • Social barriers
  • Economic barriers

Let’s break these down further.

Knowledge barrier

If people don’t understand something, they are very unlikely to invest in it or get involved. As it stands, the vast majority of people do not understand blockchain or any of its implementations. Their only experience with this system is through the news, which often paints the industry in a negative light.

Until people have a way of learning about cryptocurrency in a way that makes sense and makes sense to them, getting started with this new technology can be an uphill battle. We need to pave the way for beginners to learn the basics before diving into the most complex areas of blockchain.

And as the market currently stands, not many people will put in the work to find obscure sources. They must be available and easily accessible.

Social barrier

Currently, there is little confidence in cryptocurrency. The entire industry has devalued by huge margins over the past 12 months. While crypto hit the $3 trillion USD market cap around this time last year, it has now dropped to around $870 billion, having eroded nearly 70% of its value.

In addition to this crypto winter, the continued loss of funds, investments, or entire systems due to fraudulent or irresponsible projects, such as FTX, has created further doubt throughout the community. Without a clear understanding of why cryptocurrency should be worth more, people simply do not see the need to invest in this financial medium.

Until people turn the tide in cryptocurrency perception, adoption will remain staggered.

Economic barrier

Bear markets are a rather difficult environment for any financial medium to navigate. Once the central stock market starts to collapse, as we’ve seen over the past year, other industries start to see knock-on effects. This is no different than cryptocurrency, which is currently on a downward spiral.

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When crypto was in a bull market, it was easy for new investors to jump on board. Even if they didn’t understand cryptocurrency or why it was going up, everyone wanted a piece of the pie. Without this economic incentive, people no longer bother to invest their money.

To change this, the cryptocurrency industry needs to make sure people fully understand the reasoning behind crypto. To achieve this, in addition to solving the other problems we outlined, we need to focus on education.

How can crypto education help solve these problems?

The knowledge, social and economic barriers preventing cryptocurrency adoption all have one common thread: a lack of understanding. When tested for cryptocurrency literacy, as little as 4% of Americans actually understand the basics of crypto and how it can be used.

Without a true understanding of crypto, people fail to understand the functionality it brings, and overlook the power it has to revolutionize our future technological outlook. More and more Web 3 companies are realizing that education should be a priority, with brands like AAG Academy started offering jargon-free reading materials.

By giving people the tools and resources they need to understand cryptocurrency, we can begin to synergize the industry and drive adoption. Let’s see how education can lead to an increase in adoption by overcoming each of the above problems:

  • Knowledge barrier – Educational platforms like AAG enable people to learn about cryptocurrency in a controlled environment. Participating in modules and browsing articles allows them to focus on beginner content and build a stable information base. From there, they are much better prepared to understand cryptocurrency news and its context.
  • Social barrier – The lack of confidence in cryptocurrency is partly due to the lack of understanding about the currency. Since the crypto market is currently falling, people who don’t understand its value assume that the total market cap is a reflection of the industry’s potential. By educating people about cryptocurrency and its actual functions, we can outline exactly why it still has value despite what the current market says.
  • Economic barrier – When people understand the value of cryptocurrency through their education, they will realize why investing is a good idea. Especially with the lower values ​​that the market is currently experiencing, this is a fantastic time to invest in the future.
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Education will outline the usability and usefulness of cryptocurrency, helping those who do not understand this market to see its true value. From there, education will help people overcome their fear of a new technology and see its benefits.

An investment in Web 3 education is one that will greatly aid overall adoption.

Final thoughts

Projects that provide the general public with a method of accessing high-quality learning materials around cryptocurrency are paving the way for mass adoption. No matter how radical or innovative a technology is, if people just don’t understand how it works, they will never be willing to believe in this system.

The same goes for an economic point of view. People will be much more willing to invest in something if they understand why it is valuable and what it will bring. Companies like AAG are streamlining the path for adoption, giving people easy-to-understand information that will accelerate overall crypto adoption by years.

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