What’s keeping cryptocurrencies from mass adoption?

TECHCRUNCH Neil Haran Contributor Neil Haran is an angel investor and cryptocurrency advocate. Speculators flocked to Bitcoin and many of the alt-coins in hopes of getting in early and making a big exit, but everyday users haven’t warmed to cryptocurrencies. There are many reasons why, but one of the largest barriers to mainstream adoption is the price volatility of cryptocurrencies. So the question is, why do the prices change so much in the first place? It comes down to supply and demand: Most cryptocurrencies have only a fixed total supply, and yet demand for the coins is uncertain and constantly fluctuating thanks to speculation. Of course, it’s easy enough to talk about the problem — coming up with a solution is quite another matter. Why is Stability So Important? The need for stability is not unique to cryptocurrency. Any currency needs to be stable in order to be used as a trusted medium of exchange. The more that prices rise and fall, the more ordinary people will shy away from using the coins for everyday transactions. Whether they hoard the coins in the hope that prices will rise sharply soon, or they avoid using them altogether for fear that they will lose all of their value, people are not yet accustomed to seeing cryptocurrency as real money. Worse, the unpredictability of prices wreaks havoc on regular money services, like...

Read More