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In December 2024, the price of Bitcoin (BTC) exceeded $100,000 for the first time. This surge was a historic moment driven by cryptocurrency advocates' optimism about the US administration. But despite the excitement, it also highlighted the ongoing problem that cryptocurrencies are not yet ready for everyday use.
Bitcoin and other cryptocurrencies are becoming increasingly popular as investments, like stocks, or as some experts say. Bitcoin is “digital gold.” But when used as real money, they fall short. High fees, slow transactions, and often overly complex systems make cryptocurrencies impractical for most people. If the industry wants mass adoption, it needs to focus on solving these problems and making cryptocurrencies easy to use and available to everyone.
Old blockchain systems are holding back cryptocurrencies
When Bitcoin was launched, its decentralized design was revolutionary. It showed the world a new way to secure and send remittances without relying on banks, which are susceptible to external factors such as inflation and geopolitical constraints. But more than a decade later, the original system still struggles to sustain itself.
Bitcoin's block creation process occurs every 10 minutes, which limits the number of transactions that can be processed. During busy periods, fees will increase and transactions will take longer to confirm. This makes using Bitcoin for everyday small payments inconvenient and expensive.
L2 solutions like the Lightning Network are trying to make Bitcoin faster and cheaper, but such solutions still rely on the same slow base layer. This means that the core issue remains unresolved. As a result, Bitcoin is primarily used as a store of value and investment, rather than as a way to pay for everyday items. For cryptography to be widely adopted, it must overcome this fundamental limitation.
Cryptography needs to scale for everyday use
For cryptocurrencies to function as money for everyone, they need to scale massively. Today's flagship products like Bitcoin and Ethereum (ETH) cannot handle the high volume of transactions required by global payment systems. Crowds and high fees make it impractical for daily use.
On the other hand, traditional payment systems such as Visa and Mastercard easily process millions of transactions every day. Cryptocurrencies will need to match or exceed this level of performance to compete. Small improvements are not enough. The industry needs bold new designs for blockchains that can handle large numbers of transactions without breaking a sweat.
Without this kind of scalability, cryptocurrencies will be stuck as niche tools. Good for speculation, but not suitable for replacing traditional financial systems.
The case for hybrid models and stablecoins
One way forward may be through a hybrid system that combines the strengths of cryptocurrencies with the stability of fiat currencies. Stablecoins tied to fiat currencies such as the US dollar are already showing promise. These offer the speed and privacy of cryptocurrencies while avoiding the price fluctuations of coins like Bitcoin.
Stablecoins are gaining traction in countries where local currencies are unstable, offering people a safe and practical way to store and transfer value. However, they are only part of the solution. The industry needs a seamless system that integrates stablecoins, traditional cryptocurrencies, and even digital fiat currencies.
Such a system gives users the flexibility to choose what works best for them, while maintaining the important benefits of decentralization, speed, and security.
Changing the way people view crypto
Another major hurdle to the adoption of cryptocurrencies is how people view them. Bitcoin is often referred to as “digital gold” and people consider it an investment to hold rather than spend. While this thinking has contributed to Bitcoin's rise in value, it has also undermined its chances of being fully integrated into everyday transactions for inferior goods.
For cryptocurrencies to succeed as money, this perception needs to change. People need to see this as a tool for everyday transactions, whether it's buying a coffee or sending money abroad. This requires not only better technology, but also better communication and transparency from the industry. The message must be clear. Cryptography is simple, reliable, and ready to use in the real world.
The road ahead
Of course, one must consider that the industry continues to focus on speculation and approaches cryptocurrencies as a stock market, toying with price increases. In that case, the industry and cryptocurrencies will not reach their full potential and will remain a niche tool. But if priorities shift to practical solutions, cryptocurrencies could truly become the money of the future.
The road ahead will not be easy, but the goal will be worth it. Cryptocurrency doesn’t just require new technology, it requires new thinking. The question is not whether cryptocurrencies can change the world. The question is, are you ready to make it happen?
