Crypto Adoption Problems
Where can you buy a Big Mac with crypto?
| Headline Problem | Category | Complexity | Importance |
|---|---|---|---|
| Regulatory Uncertainty | Governance | High | Critical |
| Centralization of Infrastructure | Decentralization | High | High |
| Volatility and Market Instability | Financial Stability | Medium | Critical |
| Security Threats (Hacks/Scams) | Security | High | Critical |
| Complex User Experience (UX) | Usability | Medium | High |
| Lack of Real-World Utility | Adoption Barriers | Medium | High |
| Environmental Concerns | Sustainability | Medium | Medium |
| Public Distrust and Bad PR | Perception | Low | High |
| Fragmented Standards and Interoperability | Technology | High | High |
| Speculation Over Innovation | Economic Dynamics | Medium | High |
| Privacy Erosion via Centralized APIs | Privacy | High | High |
| Unproven Business Models | Economics | Medium | Medium |
| Geopolitical Risks (Sanctions, Crime) | Geopolitics | High | Medium |
| Overhyped Promises vs. Delivered Value | Perception | Medium | High |
| Institutional Hesitancy Due to Regulation | Governance | Medium | Critical |
| Ransomware and Criminal Exploits | Security | High | Critical |
tip
You can lead a horse to water but you can't make it drink
Reality
- The industry is currently infrastructure-heavy, with a lack of user adoption and applications compared to the technical progress made.
- There's an ongoing debate about whether crypto is primarily for infrastructure (financial rails, payment systems) or if it should focus more on consumer-facing applications.
- The current cycle is unusual, with prices running ahead of user adoption, which is a deviation from past patterns.
Security Threats
User Experience
- Complex learning curve, cost of learning by failure.
- Need agents that can be trusted to implement good intentions.
Unified Purpose
- The industry is grappling with finding the right balance between decentralization and practical application development.
- There's a growing recognition that crypto might need to focus on use cases that don't require users to deeply care about or understand crypto technology.
- The concept of "restaking" and shared security is evolving, with ongoing debates about its implementation and necessity.
- Some argue that the industry needs to return to basics, focusing on achieving global-level payments as a "hello world" application before moving to more complex use cases.