In a recent video session, Coinbase’s CEO Brian Armstrong has outlined what be determines to be some of the core issues for mass adoption of cryptocurrencies. Moreover, Armstrong also made some suggestions as to how these issues could be remedied.
The three main issues to solve are volatility, scalability, and usability
Specifically, this came in a live-broadcast, 45 minutes long AMA (ask-me-anything) session on YouTube. In it, Armstrong answered a number of questions submitted by the cryptocurrency community.
The first question, and perhaps one of the most notable, related to how cryptocurrencies can reach mass adoption. Armstrong expanded on this notion, and pointed out that there currently exists three separate main barriers preventing mass adoption.
These are volatility, scalability and usability. First and foremost, Armstrong argued that volatility acts to repel traditional investors. Moreover, the Coinbase CEO went on to explain that markets in constant flux are not likely going to be attractive to a large number of people.
Rather, he posited that the cryptocurrency industry needs more stable prices – which could, for example, be achieved via stablecoins – as well as a larger number of use cases in order to be appealing to a mass-market audience.
Cryptocurrency transaction capabilities per second are nearing Visa and PayPal
In addition to this, Armstrong also pointed out that scalability can be a major barrier to adoption. Nevertheless, he also mentioned that this is an issue which is currently being addressed.
According to Armstrong, there are around ten separate teams currently working on solutions relating to scalability – e.g. the Lightning Network – in order to improve the speed and volume of cryptocurrency transactions.
Subsequently, cryptocurrency transaction capabilities might soon reach 500 to 5000 transactions per second, and could consequently potentially start operating at PayPal or Visa volumes.
Last but not least, Armstrong also illustrated that usability is one of the core issues for appealing to a large-scale market. Currently, Armstrong suggested that users need to go through ”too many steps” in order to make a cryptocurrency investment.
Instead, the Coinbase boss noted that cryptocurrency investments for retail investors need to function much more readily, and used cryptocurrency integration within the Chinese WeChat platform as an example of how this could be done.
Furthermore, the AMA session also touched on a myriad of different subjects. For example, Armstrong commented on the recent #DeleteCoinbase movement, and also explained why Coinbase aims to support many different cryptocurrency coins, rather than to ”pick the winners.”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.