Trust and believe are major factors which made human legitimate to adopt any thing and it base on the experiences of earlies. Unfortunately crypto lacking in this regard due to bad experiences of the people. Whenever I talked to people around me about crypto adoption and its attachments , most of listeners denied to accept or to do a experiment.
When we analysed that why people has mistrust in Crypto, The main setbacks becoming the reason of it. There have been several setbacks in recent months. One of the biggest is the fall of the Terra stablecoin in May 2022, which led to the collapse of several major crypto projects and caused a significant loss of investor confidence.
Another setback has been the ongoing crypto winter, which has seen a sharp decline in the value of most assets. This has been driven by a combination of factors, including rising interest rates, regulatory scrutiny, and a general economic downturn with high inflation and financial crises.
Secondly the collapse of FTX, a major cryptocurrency exchange, in November 2022 has caused further damage to the industry's reputation and raised concerns about the safety of user funds.
These setbacks have contributed to a challenging environment for the crypto market, with many investors becoming more cautious and some predicting a prolonged period of uncertainty. However, it's worth noting that the cryptocurrency market is known for its volatility and past setbacks have been overcome before.
So it is hard to motivate a person for move towards crypto. Then lot of other factors also involve which making difficult for common people to trust in Crypto.
Lack of understanding.
Many people are not familiar with how cryptocurrencies work and may not fully understand the potential risks and benefits. This lack of understanding can lead to fear and mistrust.
Price volatility.
Cryptocurrencies are known for their extreme price volatility, with some currencies experiencing sudden and significant drops in value. This can be unsettling for investors, and can contribute to a lack of trust in the market.
Security concerns.
Cryptocurrencies are stored and transferred using cryptography, which can make them more secure than traditional forms of payment. However, security breaches have occurred in the past, and this can also contribute to a lack of trust.
Regulatory uncertainty.
Cryptocurrencies are not yet widely regulated, which can make them seem risky for some investors. There is also a lack of clear guidelines for how they should be treated by regulators, which can create additional uncertainty.
So these factors leading common man to have mistrust in Crypto and it will continue untill stability of digital currency with frequent use case.
Amjadwaince.
