Cryptocurrency and the blockchain industry have been seeing impressive growth rates over the last few years, thanks to the many organizations and governments that understand their potential to change the world. However, they require a different kind of thinking. In some ways, crypto fits the description of a disruptive technology that will alter and replace current practices. Although change is good, it requires a concerted effort. In light of this discussion, let us look at the top four challenges for crypto entrepreneurship and investment.
There is much skepticism around blockchain. It is understandable, considering that blockchain presents a paradigm shift in the ways that we think and live. Unfortunately, this skepticism has its roots in a lack of knowledge and a sense of fear, rather than in any meaningful concerns. Both of these aspects have led to extensive regulations by the governments of different countries. There are heavy bans on using and trading cryptocurrencies, as well as on implementing blockchain-based projects.
Hype Around Crypto
Ever since Bitcoin made its appearance, there has been a lot of hype. This helped the crypto to get attention from everyone, ranging investors to lawmakers. Unfortunately, this hype also led to strong opinions by parties that had no clear idea of what cryptocurrency really was. As a result of this hype, many companies jumped into the fray. However, the lack of understanding of the fundamentals led to their failures.
Lack of Knowledge
Blockchain technology is still an evolving technology. Indeed, there are millions of questions surrounding it. Most people do not know what it is, and they do not understand its benefits. This has led to wrong and misguided information.
More Supply Than Demand
Considering the number of companies that are in the crypto field today, we have a situation where there is an increasing supply of cryptocurrency and not enough relative demand. Thus, the lack of relative demand is a huge obstacle to crypto entrepreneurship success.