Building a new business in any industry comes with its own set of challenges. Blockchain and cryptocurrency market are no exception.
Barriers and challenges in the cryptocurrency market
In recent months, newspapers large and small have mentioned the blockchain industry. However, the majority of those articles are aimed at people who have invested in cryptocurrencies and industry insiders.
It is noteworthy that personnel with expertise in the blockchain industry are scarce. Therefore, startups have encountered an inadequacy problem that is the high level of competition for human resources in the industry. And jumping into the blockchain space can seem quite difficult for someone with enthusiasm, but lack of technology expertise.
On the other hand, industry insiders also have difficulty identifying the factors that attract new investors to enter the field.
Within the framework of this article, the CryptoWallCity team will introduce barriers and challenges in the blockchain industry at the moment.
The information in the market is not quality
Although, the cryptocurrency market is still relatively new, it is giving many people access to the exciting things that are happening in this potential field.
The official approach can be difficult, because a lot of information about blockchain, the cryptocurrency market is available on the Internet, but not all is correct.
Every industry has its own expertise, blockchain and the cryptocurrency market are no exception. In fact, many investors will find it difficult to make money in this market because they are not equipped with enough knowledge.
Accumulating the necessary knowledge to participate in this market is really not too difficult. This is a level playing field and it is not too difficult to find resources related to the blockchain industry. However, because the nature of this market is associated with advanced technologies, its growth rate is very fast. Therefore, the key to success in this market is to stay informed by following activities on Twitter, LinkedIn and many other news sites, such as cryptowallcity.com. It also raises questions about the accuracy of that information.
Lack of educational resources
Raising awareness about the cryptocurrency market is one of the main barriers for people. One of the ways to accelerate the process of taking the market further into the future is to create and distribute content in different formats, such as books, blog posts, articles, podcasts, conferences. Web discussions, videos, newsletters…
Access to new capital is one of the challenges for businesses in any field. In the traditional economy, businesses will access capital through banks, foreign partners, or will raise capital by issuing stocks and bonds.
These are the most common ways of raising capital in centralized markets. However, these methods of raising capital still have many limitations, such as quite cumbersome processes and procedures, especially having to go through an intermediary unit.
We can solve this problem by creating systems based on principles of fair sharing. This system will operate according to the principles of decentralization, transparency and not controlled by intermediary organizations. And the fundraising process of blockchain projects is a prime example of this system.
However, because the blockchain industry is still relatively new, as well as full of risks, access to new sources of capital on a broader scale is still limited.
The need for communities to connect and develop is quite high
Community is one of the indispensable components for any blockchain project or company. This is where groups of developers and investors come together to achieve a common goal. In particular, the community is a place for developers to absorb investors’ opinions in order to improve products to meet users’ needs. For users, the community is a place for them to connect and share the knowledge and experience they have accumulated in the market. As such, the key to a more popular Crypto market is to create communities where people can connect and grow together.
Difficulty in choosing a protocol
According to CoinMarketCap, the Crypto market at the moment has more than 18,886 crypto assets and every day many new protocols are born. However, not every blockchain project has the same potential.
Most of the new entrants to the market are overwhelmed with the variety of blockchain projects. In it, investors will not know which project to choose, or which protocol to invest in. And programmers will not know which blockchain infrastructure to choose to develop their projects.
To find a potential blockchain project, it requires investors to do thorough research and have their own evaluation criteria. Especially, investors must carefully study Tokenomics, technology, applicability, and development team of that project.
For programmers, they can choose open source Web 3.0 technologies, blockchain infrastructures that meet all 3 criterias: Scalable, secure and decentralized, in order to bring provide the best possible user experience.
Scarcity of qualified developers
As mentioned at the beginning of the post, people with expertise in the blockchain industry are scarce. And most businesses need programmers with good expertise to develop blockchain products.
Finding blockchain developers who understand the vision of the business and are ready to work immediately is a big challenge for most of the new entrants in this market.
However, in the cryptocurrency market there are communities dedicated to blockchain developers. Businesses can leverage these communities to find the right talent for their growth needs.
Lack of regulatory guidance
In the United States, the lack of detailed guidance on regulations is the number one barrier that causes many businesses to “turn away” from the Crypto market in this country. If the authorities can shed more light on regulations and provide more specific guidance, the cryptocurrency market will grow even more.
Not understanding the utility of blockchain
Many people only know blockchain is used in transferring assets, but do not know that it has many other benefits. Besides, they also do not know clearly which areas are suitable to apply blockchain technology.
In addition, developers are not knowledgeable about the needs of users, so the community is one of the indispensable components of a blockchain project. If they only take advantage of their available technologies and expertise, they may create products that do not meet the needs of users.
Above is information about the barriers and challenges that exist in the Crypto market. In general, the cryptocurrency market currently has three common barriers to entry. The first is unclear regulations from authorities in many countries. Secondly, investors are not equipped with the necessary knowledge before investing in this market. Finally, there is a potential risk in the diversity of blockchain projects.