Education is the key to broader crypto adoption

Disclosure: The views and opinions expressed here are solely those of the author and do not necessarily represent the views and opinions of crypto.news editorial.

For years, the promise of cryptocurrency has been occupying dreams and promising global financial transformation, but despite all the talk around it, there is still a significant hurdle hindering mainstream adoption. And that barrier, simply put, is the general lack of knowledge about crypto.

Market research shows that almost half of respondents worldwide have never used or invested in cryptocurrencies because they are not sure how they work. In the US alone, more than 60% of people say they do not trust the security and reliability of cryptocurrency.

Without a proper knowledge base, it is only logical that potential users would be deterred from entering this market. Hesitancy (if not outright skepticism) is holding them back and preventing the mass adoption the industry loves to talk about.

If this gap is to be closed, crypto education is essential. But much of what is labeled “education” in crypto today is actually an attempt to embellish marketing tactics. My view is that this focus is misguided and that clear, comprehensive information that can empower users is where to go.

Let me show you what I mean.

Current crypto training programs are full of pitfalls

More than once I have been asked my stance on how the crypto industry is progressing in terms of audience communication and education. Unfortunately, I cannot say that I have seen much improvement in recent years. For many companies, training programs are not a priority, and even the few that try often miss the mark.

Many market players are trying to highlight their own platforms, products and tokens rather than focusing on truly educating potential users; what do you have in your hand? Education is seen as a way to further their own agenda, rather than truly informing people about what cryptocurrencies are, how they work, and how users can act to stay safe in this market. This causes many newcomers to have a very shallow level of understanding and distrust crypto, giving up on the idea of ​​using it.

For example, the average crypto tutorial may talk about the benefits of using a particular cryptocurrency or exchange, but it is unlikely to delve into the basic concepts that new users really need. Basic information like how crypto exchanges work in general, wallet security or fraud prevention. It’s no surprise, then, that this approach doesn’t inspire much confidence.

Benefits of improving financial literacy

Once again, fostering trust and a sense of security in this marketplace requires a deeper commitment to education. To make cryptocurrency sound great, it must go beyond throwing out some catchy words; Real education should teach how to participate in this industry consciously. In short, users need to know what they are doing.

Properly educated consumers are safer and less likely to fall for scams. They are also more likely to view crypto as trustworthy, which will certainly help in trying to improve the industry’s generally poor reputation.

As more people understand the workings and risks of crypto, the market as a whole may become safer. If fewer users lose money due to misunderstandings and deceptive schemes, this will lead to wider use and mainstream acceptance of crypto.

Promoting a collaborative approach

Despite what has been said above, in my opinion, the job of driving crypto literacy forward cannot and should not be left to businesses alone. They do not have the resources to undertake such a large task. The market stands to benefit from someone taking a leadership role and providing the full scope of information rather than narrowing it down. And who better to help than regulators who already have the authority to make this happen?

Crypto companies and regulators need to work together. One possible way to get there is for regulators to set standards for educational content and for companies to take responsibility for educating their user bases. By sharing the load and working together, they can better cover all their bases.

Most importantly, there needs to be more focus on end users. At this point, regulatory bodies around the world are mainly trying to create rules for crypto companies to follow. And while this is certainly not a bad thing, it still leaves the problem that ordinary people continue to lose money in this market due to a lack of basic knowledge on the subject. This is an issue that requires urgent attention from all market participants.

Increasing understanding to increase acceptance

This being the case, I believe the knowledge gap is one of the biggest obstacles to mainstream cryptocurrency adoption. If this industry is to move forward, it needs to show a real commitment to making the fundamentals of crypto accessible to everyone.

Cryptoliteracy cannot just be an attractive “gimmick” that attracts users; should be at the heart of how companies engage with their target audiences. By allowing people to make more informed decisions, this industry can build greater consumer confidence and ultimately drive the broader adoption it so desires.

Valentina Drofa

Valentina Drofa is co-founder and CEO of Drofa Comms, an international public relations consultancy specializing in the financial and fintech sectors. He is a global entrepreneur and business leader who has worked in the financial market for over 15 years. He is a financial market consultant with a doctorate in economics and the author of several books on financial literacy.