Encryption has failed and needs to change

In December 2024, the price of Bitcoin (Bitcoin) surpassed $100,000 for the first time. This boom, driven by optimism about A The US administration is pro-encryptionIt was a historic moment. However, despite the excitement, it also highlighted an ongoing problem, which is that cryptocurrencies are still not ready for everyday use.

Bitcoin and other cryptocurrencies have become popular as investments, similar to stocks or as some experts call it – Bitcoin is “digital gold”. But when it comes to using it as real money, it fails. High fees, slow transactions, and often complex systems prevent cryptocurrencies from being practical for most people. If the industry wants to see widespread adoption, it needs to fix these issues and focus on making cryptocurrencies easy to use and accessible to everyone.

Legacy blockchain systems hinder cryptography

When Bitcoin was launched, its decentralized design was groundbreaking. It showed the world a new way to secure and transfer money without relying on banks that are vulnerable to external factors such as inflation and geopolitical constraints. However, more than a decade later, its original system is struggling to keep up.

Bitcoin’s block creation process, which occurs every 10 minutes, limits the number of transactions it can handle. During peak times, fees are higher, and transaction confirmations take longer. This makes using Bitcoin for small, everyday payments inconvenient and expensive.

L2 solutions like the Lightning Network try to make Bitcoin faster and cheaper, but such solutions still rely on the same slow underlying layer. This means that the basic problem remains unresolved. As a result, Bitcoin is mostly used as a store of value or investment rather than as a means of paying for everyday goods. For cryptocurrencies to become widely adopted, this fundamental limitation must be overcome.

Cryptocurrency needs to be scaled up for everyday use

If cryptocurrencies are to serve as money for everyone, they need to scale significantly. Today’s leading companies such as Bitcoin and Ethereum (Ethereum) cannot handle the volume of transactions required by the global payment system. Congestion and high fees make it impractical for daily use.

On the other hand, traditional payment systems like Visa and Mastercard easily process millions of transactions daily. In order for cryptocurrencies to compete, they must match or exceed this level of performance. Small improvements are not enough. The industry needs bold new designs for blockchain systems that can handle huge transaction volumes without breaking a sweat.

Without this kind of scalability, cryptocurrencies will remain stuck as a niche tool – good for speculation but not for replacing traditional financial systems.

The case of hybrid models and stablecoins

One way forward could be through hybrid systems that combine the strengths of cryptocurrencies with the stability of fiat currencies. Stablecoins, pegged to fiat currencies like the US dollar, are already looking promising. They offer the speed and privacy of cryptocurrencies while avoiding price fluctuations of currencies like Bitcoin.

Stablecoins are gaining traction in countries where local currencies are unstable, providing people with a safe and practical way to store and transfer value. However, they are only part of the solution. The industry needs a seamless system that integrates stablecoins, traditional cryptocurrencies, and even digital fiat currencies.

This system would give users the flexibility to choose what suits them while maintaining the key benefits of decentralization, speed and security.

Changing how people view cryptocurrencies

Another big obstacle to the adoption of cryptocurrencies is the way people view them. Bitcoin is often called “digital gold,” which makes people think of it as an investment that should be held rather than spent. While this idea has helped Bitcoin grow in value, it has also hurt its ability to be fully integrated into everyday transactions of lower commodities.

For cryptocurrencies to succeed as money, this perception must change. People should look at it as a tool for everyday transactions, whether they are buying coffee or sending money abroad. This requires not only better technology, but also better communication and transparency on the part of the industry. The message should be clear — cryptocurrencies are simple, reliable, and ready for real-world use.

The way forward

We must of course take into account that the industry continues to focus on speculation and treat cryptocurrencies as a stock market while manipulating price gains, in which case the industry and cryptocurrencies will fail to reach their full potential and will remain as a niche tool. But if priorities shift to practical solutions, cryptocurrencies could truly become the money of the future.

The road ahead is not easy, but the goal is worth it. Coding doesn’t just need new technology, it needs a new mindset. The question is not whether cryptocurrencies can change the world. The question is whether we are ready to make it happen.