By Obi Nwosu, CEO and Co-Founder, Coinfloor
Bullshit baffles brains. And the cryptocurrency industry is chock-full of BS – so much so that it seems almost designed to put people off.
This Coin BS is a major reason why Bitcoin has so far failed to change the world like its advocates have foretold.
Because Bitcoin is brilliant. It enables users to bypass banks’ fees and commissions, increases consumer security, supports a range of new financial services based on the blockchain – and provides an answer to money’s oldest problem: inflation.
Yet the process of buying cryptocoins is incredibly hard work for normal people. Meanwhile, anyone seeking to make their first steps in the market has to decipher the complex language and (often distinctly dodgy) advice.
So if you’ve been tempted to dip your toe in the crypto waters, only to be defeated by all the impenetrable language and contradictory advice – don’t worry. You’re not alone. All the Coin BS has dissuaded even the brightest and best from seizing the Bitcoin opportunity.
To kickstart the long-awaited crypto revolution, we need to banish the BS, untangle the mystery, and add a decent dose of straight-talking common sense.
First, we need to be honest about the hundreds of cryptocurrencies out there: most of which haven’t a hope in hell of becoming mainstream money. Customers need a crypto with technical maturity, resilience and stability; widespread adoption; a community of technical, financial and legal experts; and a network of properly-regulated exchanges.
There is only one crypto that ticks all the boxes: Bitcoin stands alone.
Having picked a winner, we then need to make Bitcoin as simple as any other electronic transaction. If customers can’t sign up and learn everything you need to start buying and trading within minutes, it should be no surprise if people give up the ghost at the first opportunity.
The next challenge is to resolve crypto’s dirty secret: proof of custody. Sadly, it’s common for cryptocurrency exchanges to misuse your funds by trading on other exchanges or lose funds by being hacked. If this happens, customers can lose everything. Exchanges must be able to prove that they are solvent and have 100% custody using the power of the Bitcoin blockchain by publishing regular, independent proof of custody and solvency reports. (Coinfloor is the world’s only exchange to do this from the beginning.)
But all this will be for nothing if our industry can’t help new customers navigate the choppy crypto waters. Today there is a lack of independent, unbiased advice, with many exchanges seemingly happier to shill for substandard cryptocurrencies than they are to educate their customers on the real risks and rewards of crypto.
People are crying out for impartial advice on how to start investing and trading in Bitcoin, and what to look for in a trustworthy exchange platform. If we can provide impartial, straight-talking advice, we’ll go a long way to consigning the mystery to history, banishing the bullshit and belatedly delivering money’s long-awaited revolution: Bitcoin for all.