Blockchain technology and its practical application in cryptocurrencies is barely 10 years old. Yet, cryptocurrency has been disrupting markets, industries and economies since Satoshi Nakamato opened the proverbial Pandora’s Box on the future of money with the release of the Bitcoin whitepaper in 2009.
Global political and business leaders now talk about cryptocurrencies – many of them are apprehensive of its disruptive potential and a few of them are cautiously embracing it. One would have thought that almost everybody in the world will be using cryptocurrencies because of how it reduces the power of governments and their agents in determining the valuation of wealth.
Unfortunately, cryptocurrency has largely struggled to unlock mass-market adoption despite all the buzz that it has garnered in the last 10 years. This piece provide insights into why the mass-market adoption of cryptocurrency has been elusive and developments that could help onboard more everyday users.
It is somewhat difficult to get accurate data points on cryptocurrency adoption, there are almost 2500 cryptocurrencies in the market and many of them operate in silos. However, we can make decently logical inferences about the state of the cryptocurrency market by looking at Bitcoin stats and maybe adding Ethereum stats to the mix.
For one, Bitcoin is the oldest, most valuable, and most popular cryptocurrency. Bitcoin’s dominance in the cryptocurrency market is about 68%; its market cap of about $208B represents 67% of the $307B market cap of the entire cryptocurrency market as at August 6, 2019.
- Cryptocurrencies are insignificant in the grand scheme of things
Starting with the market cap of the entire cryptocurrency market valued at $307.14B, cryptocurrencies are practically negligible in relation to all other asset classes.