In recent years, cryptocurrency has become increasingly popular. It’s known for being decentralized, offering enhanced security and quick transactions to its users. While over 318 million people worldwide own crypto, it still has not become a mainstream currency and is not as popular as fiat currency by any means.
However, it’s gaining popularity quickly. Of the 318 million crypto holders, nearly 60 million purchased crypto within the past 2 years.
In this article, we’ll speculate on if crypto will ever become mainstream and consider the factors that are influencing the adoption of digital currency.
The Evolution of Cryptocurrency
Cryptocurrency was first introduced to the world in 2009, with the launch of the first digital currency, Bitcoin. While Bitcoin was slow to gain traction at first, once it did, it took off in a big way.
Since Bitcoin’s inception, thousands of cryptocurrencies have been launched. In 2024 there are now over 13,000 digital currencies to choose from, each offering their own unique benefits to users.
While cryptocurrencies were once viewed with a level of skepticism and mistrust, they have gradually gained legitimacy as a viable alternative to traditional fiat currency. With an adoption rate of approximately 8%, the number of individuals, businesses, and financial institutions starting to use crypto is slowly inching up.
Growing Acceptance and Adoption
One of the main indicators that crypto is moving away from being categorized as a niche virtual currency and towards mainstream acceptance is the growing acceptance and adoption by businesses and consumers all around the world.
In the last few years big brand name businesses have started to accept cryptocurrencies. Names like Tesla, Microsoft, Gucci, and PayPal now accept digital currency as a form of payment. In addition, the number of smaller retailers accepting crypto is also growing.
This adoption shows an increasing level of acceptance among businesses and a demand from consumers. A few key business sectors are leading the way by accepting crypto across various platforms, let’s explore a few:
- E-commerce: Many online retailers and e-commerce platforms accept cryptocurrency as a form of payment, providing customers with an alternative payment option for goods and services. E-commerce platform provider Shopify offers cryptocurrency as a payment method, encouraging their clients to accept and trade using crypto.
- Online Gambling: The online gambling industry has embraced cryptocurrency, allowing players to buy in, wager, and withdraw funds with crypto. Many online betting sites offer players the opportunity to engage in online casino real money gaming or crypto wagering, offering a variety of payment options to players. Vlad Grindu further notes that players should research not only the payment methods offered but also how quickly sites payout winnings and if there are any associated fees before getting started betting online.
- Hospitality and Tourism: Some airlines, hotels, and travel agents now accept crypto as a form of payment. For example, the Kessler Collection of hotels started accepting crypto in 2021. They offer stays in US states like Alabama, Colorado, and Georgia, among others.
- Financial Services: Some traditional financial institutions, including banks and investment firms, are starting to explore the integration of cryptocurrency into their product offerings, like trading platforms. While this varies from business to business, it’s a step crucial step toward crypto adoption.
These industries represent just a few examples of sectors that have recognized the potential of cryptocurrency and are actively incorporating it into their business models.
While the growing adoption of crypto is not limited to the above list, this is a good indication of the increased acceptance of virtual currency growing within mainstream industry sectors.
Institutional Investment and Support
Another aspect leading to the mainstream adoption and growing acceptance of crypto is institutional investment and support. Hedge funds and pension funds count as institutional investors and are increasingly investing in cryptocurrency assets.
As investments, crypto is sometimes considered a hedge against inflation and an investment with possibly very high returns.
As a growing number of institutional investors begin to use crypto, it adds a certain level of credibility to virtual currencies. This may broaden the appeal to a wider range of individuals and further cryptos’ widespread adoption.
Regulatory Clarity
When crypto was first launched, regulations were few and far between. Since then, governments have been working hard to put regulations in place and provide clarity for crypto holders and businesses alike.
With clear guidelines in place, it’s likely that a growing number of individuals will feel comfortable investing in and using digital currencies moving forward.
Consumer Education and Awareness
Consumer awareness is a crucial factor when considering if crypto will ever become mainstream or not. Even though over 300 million people around the world own crypto, a huge number of people still don’t know much about it.
A Yahoo Finance study recently shared that 98% of individuals don’t grasp the basics of Bitcoin, stablecoins, or NFTs. If the general population does not understand cryptocurrency basics, it’s likely never to be adopted as a mainstream payment option.
The solution to this is consumer education and awareness. As more people start to understand crypto, it will become more widely used, however, this may take some time.
Tech Innovation and Scalability
As cryptocurrency technology continues to advance, it’s likely that digital currencies will become more widely accepted. This is because there are certain pain points currently present with crypto that may be fixed with tech innovation in the future.
Things like scalability, transaction speed, and energy efficiency are some issues that are holding back the growth of crypto. However, with the right changes, these issues could be fixed which would see crypto become more widely adopted.
Cryptocurrency is already used by many consumers and a wide variety of businesses in different sectors. Albeit growing at a relatively slow rate currently, crypto may eventually become a mainstream payment method, however, it will likely take some time.
