Charlie Lee, the founder of Bitcoin fork Litecoin, has recently opined that cryptocurrency adoption is refusing to grow because of two main reasons: poor user experience and high volatility. The latter is a commonly cited issue with cryptocurrencies in general, as their prices can vary greatly with the slightest of market changes.
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The well-known crypto influencer made these remarks during a conversation he had with a crypto media outlet at the premier Asian crypto event Token2049. Over the course of the discussion, he expressed his opinion about what he felt was deterring a higher level of crypto adoption.
Charlie Lee was asked about the current situation of crypto adoption and he enumerated two points and even went on to explain his point further. He said that volatility was a major factor because it makes it hard for people to use crypto because of it. Since prices constantly keep moving, it becomes hard for users to make buy and sell decisions easily. He said:
‘One thing is volatility. Because crypto prices are so volatile, it’s hard for people to actually use it, meaning adoption is hampered. Volatility is kind of a chicken and the egg type scenario. Once there is adoption, volatility will decrease, meaning more adoption. So it’s a slow process for that to work for us to overcome that.’
The second issue he talked about was the lack of experience among users of storing their own digital money. Since this is a key factor in crypto adoption: storage, people find it difficult to take care of it effectively.
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‘The second thing that’s kind of preventing us from getting a lot of adoption is user experience of storing your own money.’
Lee explained that there would always be a delicate balance to strike between security and ease of storage. He said:
“People are using exchanges to store their coins because they can’t do it themselves. It’s easy, but then you hear all the stories about exchanges getting hacked. And that really hurts adoption.”
He said new and better solutions were necessary but agreed that the problem was “hard to solve”.
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