I’ve always found Vitalik (the co-founder of Ethereum) fascinating. For one, he is definitely brilliant but recently I’ve noticed he seems to be going back to roots. He is trying to put across a very important message in front of us, which I think says, “stop putting too much of focus on ETFs but rather, work on making cryptocurrency mass adopted.”
Vitalik Buterin, in his recent tweet, said we are focussing too much on ETFs rather than making cryptocurrency easier to use as a method of payment for everyday purchases via payment cards. tweet. An ETF will benefit cryptocurrency prices, he believes, but making it easier for people to use it will do more for mass adoption.
I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.
— Vitalik Non-giver of Ether (@VitalikButerin) July 29, 2018
Predictably, the comment drew a lot of response on Twitter.
One tweeter noted that creating the ability to earn cryptocurrency will do more to encourage adoption since when a person earns cryptocurrency, there is no need to convert it to fiat, which presents an inconvenience.
Another tweeter noted that attempts were made in the past to make cryptocurrency usable for retail transactions, but regulatory concerns stopped businesses from issuing cards. The tweeter noted that such an effort might prove more successful at the present time.
The existing regulatory bodies such as SEC is also not making it easy for exchanges trying to enlist crptocurrency ETFs. Recently, the SEC shot down the Winklevoss brothers Bitcoin ETF proposal, for the second time.
Others claimed there is no advantage to using crypto for retail transactions.
Can’t An ETF Help In Mass Adoption?
While Buterin views ease of use for everyday transactions as key to mass adoption, the availability of cryptocurrency ETFs could also play a role in bringing that to pass.
When the U.S. Securities and Exchange Commission (SEC) recently clarified that bitcoin and ethereum are not securities, many crypto advocates welcomed the news since it bodes well for cryptocurrency ETFs. However, the decision also bodes well for the industry in ways that can impact mass adoption.
Some viewed the SEC clarification as validating Coinbase‘s recent move to support the ERC-20 token standard.
Dan Romero, Coinbase general manager and vice president, said last month that at the current phase of cryptocurrency regulation, it is important for the company to integrate digital assets that cannot be categorized as securities.
Coinbase’s May acquisition of Paradex, a decentralized cryptocurrency exchange, and Toshi, Coinbase’s native Ethereum app, and integrating more tokens will encourage mainstream adoption of tokens, many believe.
Circle co-founder and CEO Jeremy Allaire recently said one of the things that catalyzed the crypto market last year was that developers by the hundreds of thousands began building dApps to expand blockchain adoption.
I think there has to be a balance but to a great extent, I seem to agree with Vitalik, there has to be a more predominant push towards making cryptocurrency widely acceptable and used. Without it being used, there ain’t going to be acceptance from the general public. ETFs if it gets listed, which I think it will soon, will help in pushing this effort, but time-being, more effort should be placed in making cryptocurrency widely accepted. And there are many ways to achieve this, apart from just using bank issued cards.
Amarjit S is the founder of Crypto Knights, a leading crypto community spread all over Asia. They have a large pool of members comprising of expert crypto traders, miners, blockchain startups, lawyers and a sizeable pool of private investors. They specialize in organizing crypto events, private investor gatherings, ICO launch parties, trainings & ICO advisory. Learn more about them.