On 2 April 2019, Brian Armstrong, CEO of Coinbase, used ‘live’ as his platform in order to reach to people who sent queries to him regarding cryptocurrencies and the industry itself.
One of the questions he answered was from a Twitter follower. The said follower asked Armstrong what are the factors needed to be addressed or actions needed to implement for massive crypto adoption to take place.
Armstrong’s response was simple, he said that for crypto massive adoption to happen, there are three things that must be done.
The three things are improved scalability, improved usability, and reduced volatility.
As explained by Armstrong, the problem he sees with scalability is the amount of transaction it could process at present. He further explained that crypto transactions are still really far if it will be compared to the services offered by other companies like Visa and Paypal.
‘Visa can process 500 to 5,000 transactions per second, whereas, transactions in crypto can only accommodate five to ten transactions per second,’ Armstrong said.
On the other hand, Armstrong also mentioned that there are already five to ten well-funded companies who are focusing and experts in creating and providing solutions for the scalability problem of cryptocurrencies. One of the companies he mentioned was Lightning Network.
In terms of usability, Armstrong admitted that there are still a lot of adjustments that need to be worked on in cryptocurrencies. One of his ideas/bits of advice is to make transacting using cryptocurrencies simpler compared to others. This is for people to be more attracted in using cryptocurrencies rather than the other ones.
Lastly, Armstrong discussed that one of the hindrances why people are not indulging completely into cryptocurrencies is because of its volatility. People are having a hard time to use cryptocurrencies as a medium of exchange because of its volatile characteristic in the market.
If cryptocurrencies are really the next currency, then volatility must be eliminated. If not, be reduced.