Initially, cryptocurrencies were the focus of a small group of enthusiasts communicating with each other on the first forum dedicated to Bitcoin –bitcointalk.org. At the time, the potential of digital assets was difficult to assess. Probably no one in 2009, when Satoshi Nakamoto mined the first block of Bitcoin, imagined that one day, this branch of finance would have a trillion-dollar market capitalisation.

Over time, crypto became increasingly popular. New projects were emerging, and originators saw a huge opportunity in the form of the ICO (Initial Coin Offering), which allowed many investors to buy tokens for smaller allocations than was the case in the classical market, where taking part in the financing of the creation of a given product from the beginning required much more investment, such as venture capital.

 

The rise of Ethereum

In 2015, Ethereum emerged and revolutionised the industry by offering the Ethereum Virtual Machine – an execution environment for smart contracts, i.e. the kind of contracts where, once certain conditions were met, their provisions were executed automatically. Ethereum is not just an investment vehicle – it can also be considered a 'toolmaker'. It is a platform that allows for the scalable building of decentralised applications (Dapps) and protocols, as well as the issuing of collections of indivisible tokens (NFTs).

Currently, cryptocurrencies and blockchain are particularly popular. They attract investors in the classical market (such as equities or commodities) with asset prices that can record huge increases during bull markets. Institutional investors are paying increasing attention to crypto as a form of storing and investing capital. Virtual currencies have become an integral component of the financial market.

 

Barriers to cryptocurrency adoption

Although cryptocurrencies are becoming more popular every year, as mentioned above, they are still far from being fully adopted. This can be understood as a level of public awareness of them comparable to, for example, familiarity with email or card payments. Cryptocurrencies are still a long way from the state where, in the grocery shop, we can scan the QR code of the seller's wallet and pay in, for example, Litecoin.

This is a very far vision of the future. Currently, it is possible to purchase various goods online with popular crypto assets, but this is a minority. For cryptocurrencies to achieve full adoption, several conditions would need to be met, including:

1. A common understanding of how the modern economy works and the problems it generates.

2. An understanding of cryptocurrencies at a technological, investment and behavioural level.

3. Addressing the scalability of cryptocurrencies so that they can handle micropayments on a global level at the speed of popular payment operators.

Cryptocurrencies are a relatively young technology. While asymmetric cryptography itself is much older, Bitcoin has only been around since 2009. Understanding its technical side is not enough. The biggest problem is the attitude barrier to learning about something new and trusting that it can have the same properties as money.

The last obvious condition is, of course, time. The last decade or so has seen incredible progress in the development of crypto, which is constantly growing. It is difficult to predict how far the development will advance in 10 or 20 years, but it is acceptable to say that a new reality, full of different advantages, will greet us.

 

How can you support cryptocurrency adoption?

If you are an individual cryptocurrency user, it is a good idea to keep your knowledge of the market and the various technological solutions up to date so that you can share knowledge with your friends. To do this prudently, you should talk about both the advantages and disadvantages, not urging you to invest, but only to familiarise yourself with the topic. You can also recommend blockchain-related literature or provide a link to the zondacrypto Academy.

Adopting cryptocurrencies on a broader scale largely depends on the players bringing the Web2 and Web3 worlds together. These include exchanges, payment operators, payment gateways or, for example, companies that issue ETFs for cryptocurrencies. Centralised exchanges such as zondacrypto have great opportunities to build the reach of the information provided, so the impact of these entities is significant.

 

How does zondacrypto support cryptocurrency adoption?

To build trust in virtual assets, zondacrypto joins forces with organisations with massive fan bases. Examples include partnerships with, e.g., Juventus FC, Raków Częstochowa, Tour de Pologne or Giro d'Italia. Such activities are milestones in the development of crypto awareness. Being a partner of industry events, such as Top Marques Monaco, during which zondacrypto CEO Przemyslaw Kral transferred symbolic Ethereum to the Princess of Monaco's charity foundation, also plays a huge role in building awareness. These events have tremendous media power, getting more and more people to learn about cryptocurrencies.

 

Interesting facts about adoption

There is a country in the world that has adopted bitcoin as an official means of payment – El Salvador, located in Central America. As of 2021, BTC can be paid there in shops and bars. The country's infrastructure has been adapted to support this cryptocurrency, putting up 200 bitcoin ATMs, opening a special fund in BTC and offering its citizens a dedicated app that gives $30 in bitcoin to those who install it.

Another interesting example worth mentioning is the Swiss city of Lugano, which is the issuer of the Luga token. It is used by residents to purchase goods and services within the city. The initiative was designed to help local entrepreneurship. The token can also be used in a dedicated app to participate in city events and pay taxes.  

Switzerland, too, has a modern approach to cryptocurrencies. It is even possible to purchase them at the post office in this country. The adoption of cryptocurrencies is progressing every year, and more countries are considering opening up to digital assets. It is worth being both an observer and a participant to support the adoption process on an individual level. Technology drives reality forward, eliminating many problems and leading to micro and macro development.

 

Lesson summary:

• Full adoption of cryptocurrencies occurs when they are widely understood, and the infrastructure is aligned for using them in everyday life.

• Barriers to adoption arise from a lack of awareness of the benefits cryptocurrencies offer and ignorance of the problems they can solve.

• A significant influence on adoption comes from organisations that combine Web2 and Web3 in their operations.

• Interesting examples of countries with high adoption rates are El Salvador and Switzerland.