How we can play our role in getting crypto to grow even faster.
We’ve witnessed an amazing turnaround since the market-wide crash in 2022, which followed a string of project collapses, notably Terra-LUNA in May and FTX’s bankruptcy in November.
The combined Bitcoin and altcoin market cap fell to $800 billion, and we’ve more than quadrupled that in just over two years.
Despite now being valued at a whopping $3.83 trillion, this asset class is just getting started.
Let’s look at four ways you can help speed up this ascent, which we hope will bring it to $5.5 trillion at this cycle’s peak, possibly sometime in mid-2025.
Before continuing, as I’m neither a financial advisor nor a US, EU, UK or Irish resident, I have no first-hand experience with the processes involved or which option is best for your local choices. I am merely suggesting ways to boost crypto adoption worldwide, particularly across European and North American markets, where I imagine most of you are based.
In no particular order, let’s begin.
1) Sharing well-researched, helpful and impartial crypto education
There is a lot of misinformation in this space, let alone in general, so it’s wise to check the data — particularly major claims — before believing it and disseminating it.
If we’re serious about educating more people about Bitcoin and crypto, we need to share the information that’s adding the most value to everyone, from novice BTC/crypto investors and traders to the experts and veterans of this space.
I wrote this article about this topic last year. Almost everyone featured in it is still some of my favourite picks, but I’ll update this list in a few months.
Also, most major crypto exchanges and hardware wallets (e.g., Trezor’s Learn page and Ledger Academy) offer free educational content via their platforms. Sometimes, you can earn small amounts of BTC or altcoins by reading information, watching brief videos, and answering straightforward quizzes.
The key to educating people is to provide them with sound and rational information and help them quell any concerns instead of convincing them that Bitcoin/crypto is best for them by shoving ideas down their throats.
Ideally, you want to tailor any advice to something that resonates with someone’s values and beliefs. For example, the importance of Bitcoin in combating government sanctions, the use of Bitcoin as an alternate (and more portable) store of value than gold, real estate and other assets, a payment system that avoids intermediaries, etc.
Bitcoin/Crypto is not for everyone. People have the right to spend, save, and invest their money as they please, so don’t forget this.
There’s another issue I’ve observed with some high-profile financial personalities commenting on this asset class.
Commentators and investors, notably Dave Ramsey, Warren Buffett and the late Charlie Munger, have done exceptionally well in their fields of financial expertise.
Yet, their advice about Bitcoin/cryptocurrencies has been atrocious.
I give credit where it’s due and criticise where it’s needed.
I think of Ramsey in particular. He advises getting out of debt, staying out of it, spending sensibly and building a decent emergency fund, much of which I agree with.
Mind you, some would find the idea of 3–6 months of savings to be excessive.
He also provides reasonable advice on stocks and retirement funds, but his multiple videos on Bitcoin/crypto profoundly irritate me.
I’ll never forget this memorable video from December 2020, in which he strongly encouraged a young caller to sell around $120,000 of BTC when it was around $20K per coin.
It’s one thing to advise someone to take some profit, but it’s another when you implore them to cash it all out “by nightfall”.
As he’s a renowned financial personality, many of his followers would be inclined to believe him. If he’s built a net worth estimated to be around $200 million, he must also know something about Bitcoin, right?
I strongly beg to differ.
For example, until a few years ago, Buffett maintained a lukewarm attitude towards tech stocks.
The bloke’s 94, so I’ll cut him some slack.
If you don’t understand a particular asset class, it’s best not to give advice about it and focus on what you know.
In the meantime, you could learn about it from well-researched, impartial sources.
A quick note about impartiality: there will always be elements of bias at play, especially when a content creator has a vested interest in Bitcoin, an altcoin or any related stocks.
Still, from a reputation perspective, writers and commentators should acknowledge both sides in sufficient detail.
Sometimes, I get it wrong, but I acknowledge the counterarguments as much as possible, responding to the glowing praise many projects receive.
2) Contact your retirement fund about Bitcoin/crypto
Even if your 401(k) or Roth IRA doesn’t offer exposure to the asset through a spot Bitcoin ETF provider, ask them about it.
They’re managing your retirement money, so you have the right to know how much they’re allocating to what investments. While you’re at it, keep an eye on annual fees and other costs, as they will add up in the long run.
Alternatively, consider a self-managed retirement account, where you can have full autonomy (but also full responsibility) of your fund.
I came across this page from BitIRA about ways to purchase Bitcoin with a 401(k).
I wrote an article delving deeper into this topic last year, which is available below. It covers options for residents across the Anglosphere — mostly Canada, the UK, Ireland, and Australia (apologies to NZ and South Africa) — and Europe.
3) Having rational conversations with people about Bitcoin and (some) altcoins
I’m talking about focusing on the blue-chip crypto assets that will stand the test of time and bring out meaningful improvements in our lives instead of the umpteenth meme coin to do the rounds on crypto Twitter.
I say “rational” because there’s no point in arguing with people vehemently opposed to anything relating to Bitcoin, crypto or blockchain.
“Blockchain is good, Bitcoin is bad.” Capeesh?
If I could give you a satoshi every time I hear that phrase…I’d probably go broke with all the Bitcoin transaction fees I’d have to pay every time per micro-transaction. One day, we’ll have ultra-cheap fees, but I digress.
Remember, some people have zero interest in this industry and asset class, and that’s fine…it just means relatively lower prices for us for longer.
4) Ask your bank about Bitcoin and altcoins
This suggestion is a tad peculiar, but hear me out.
Those who don’t feel comfortable safeguarding their private keys or don’t trust centralised exchanges should ask their banks if they offer crypto services.
Mind you, I’d be more inclined to trust Coinbase or Kraken than a bank that, ironically, would most likely use one of these (probably the former) to ultimately custody their clients’ crypto assets.
So, where do you come into this? Even if you have zero interest in using their services to manage your crypto, asking them about it means you’re helping speed up their process of offering crypto custody services by creating that demand.
In turn, you’re increasing the likelihood that the relevant department will agree to provide crypto services for its clients.
It will be a matter of when, not if, for most financial institutions. If there’s money to be made and Bitcoin, Ethereum, and other blue chips continue to establish themselves as solid investments, banks will get on board.
One thing holding financial institutions and clients back from embracing digital assets is the lack of insurance options, unlike fiat.
Remember that, as of December 2024, only a handful of trustworthy choices have an insurance program for one’s crypto holdings. An exception to this might be a stablecoin, but even then, that’s still slim pickings, and conditions apply.
This is because, unlike fiat currencies in major jurisdictions, e.g., Federal Deposit Insurance Corporation (FDIC) for greenbacks in the USA, governments won’t insure clients for BTC or altcoins in case of bank collapses or other mishaps.
Mind you, I wouldn’t be surprised if a Republican government trials this idea, but perhaps not during Trump’s upcoming term. Watch this space.
I have previously mentioned that exchanges will most likely adopt a two-tier insurance model whereby:
— a modest amount of crypto (i.e., equivalent in USD or one’s local fiat) would have complimentary coverage, e.g., Binance’s Secure Asset Fund for Users (SAFU).
— a higher tier, whereby clients pay a monthly or annual subscription to ensure additional protection. This would most likely be more (ultra) high-net-worth investors, trusts and family offices, whereby a similar setup is already offered to this cashed-up clientele (e.g., Coinbase’s Private Client division).
In the meantime, your best bet is to look into reliable crypto-friendly banks that function as conventional digital banks and crypto exchanges.
Uphold is an example of a crypto custodial provider that also accommodates the trading of precious metals and other conventional assets and can serve as a digital bank. It has an FDIC-insured (USD Interest) account, allowing users to earn much higher interest rates than traditional financial institutions for retail investors.
N.B. This is neither paid advertising nor is there an affiliate link included.
As Bitcoin and crypto become increasingly intertwined into conventional fintech systems, most major exchanges will hold a type of banking licence. For example, Kraken’s Financial division holds a Special Purpose Depository Institution (SPDI) banking license, administered and managed by the Wyoming Division of Banking.
Within 12 years, most countries with regulated banks will function as crypto custodians or vice versa.
Additional thoughts
For several years, many of us in this space have been waiting for the day crypto is regularly used by over a billion people worldwide.
According to a joint report by Boston Consulting Group (BCG), Bitget, and Foresight Ventures, we’re on track to achieve this target by 2030.
Even though we’ve been heading in the right direction, the tech’s progress has been slower than expected, and the user experience is still lacking; account and chain abstraction, better scalability, and interoperability will significantly help.
In its defence, early iterations of mobile (cell) phones, the Internet, appliances, and video games were atrocious compared to their modern-day equivalents.
Crypto is no different.
This also reflects how early we are. In due course, many won’t have to think about the underlying concepts and technology behind distributed ledger technology, notably blockchain. Using Bitcoin, altcoins, and their underlying tech will become as common as using a smartphone or laptop.
What are some other ways we can boost crypto adoption, not just in developed countries but across the developing world? Leave your thoughts below.
P.S. Alluding to geography again, it would be helpful if Medium provided geolocation stats for those who read our articles. That way, I could tailor the content to make it more relevant to you.
Disclaimers
• N.B. None of this is financial advice; I am not a financial advisor. You are ultimately responsible for crypto investments, let alone in any asset class.
• The opinions expressed within this piece are my own and might not reflect those behind any news outlet, person, organisation, or otherwise listed here.
• Please do your research before investing in any crypto assets, staking, NFTs or other products affiliated with this space.
• Ethereum (ETH), Bitcoin (BTC) and Cardano (ADA) collectively account for about 65% of my crypto portfolio in order of holdings.
• For transparency, I hold a small amount of Coinbase stock (in the single digits). I hope you bought it shortly after I published this article in January 2023 during the depths of the bear market.