In a recent interview with Talia Kaplan, a reporter for CNBC’s “Crypto World,” David Moore, the Chief Product Officer at blockchain protection firm CoinCover, discussed the findings of their report titled “Securing the Future of Cryptocurrencies,” which was released on September 6, 2023. The report aims to identify the challenges hindering mass adoption of cryptocurrencies and offers insights into the future of the industry.
The report, which surveyed individuals from nine countries, including the U.S., Canada, Singapore, Australia, and Japan, found that ownership of digital assets is increasing. About 17% of respondents currently own cryptocurrencies, and 30% indicated they are likely to invest in the next year.
Moore emphasized that despite the volatile history of cryptocurrencies, the industry has shown remarkable resilience. He noted that more than 30% of non-crypto users are considering investing in cryptocurrencies in the next 12 months. However, he also pointed out that there are “hygiene factors” the industry needs to address, such as concerns around theft and security, which were cited as significant issues by both crypto and non-crypto users.
An interesting divergence was observed between crypto and non-crypto users. While crypto users were primarily concerned about losing access to their assets stored on the blockchain, non-crypto users were more worried about the complexity of crypto products and services.
The report found that Bitcoin remains the most popular cryptocurrency, with 46% of respondents favoring it. This was followed by NFTs at 18% and Ethereum at 17%.
Moore noted that 50% of respondents were positive about their financial returns from crypto investments, compared to only 20% who were dissatisfied. He interpreted this as an indication of market maturity, suggesting that investors are beginning to see more stable returns. This point underscores the evolving maturity of the crypto market, as only a small percentage of respondents were dissatisfied with their returns.
Moore also highlighted that traditional finance organizations are increasingly investing in technology to offer crypto versions of traditional financial products. This trend is expected to contribute to the mainstream adoption of cryptocurrencies over the next 12 to 24 months.
The report highlighted that crypto exchanges are the least trusted financial services providers among non-crypto users, with 30% saying they do not trust them at all. Moore argued that the entire crypto industry needs to enhance its security measures to gain public trust.
Moore concluded that the industry needs to cater to a broad range of risk appetites to achieve the growth expected in the next 12 to 24 months. He emphasized that layers of security, similar to those in traditional finance, are essential for satisfying this diverse user base.
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