Thread by @TheDesertLynx

Meaningful adoption of #Crypto as money still hasn't kicked in yet, despite 14 years since its inception and demand across the globe.

Why? 🤔

Because we keep getting stuck at certain levels of the adoption cycle. Thread:👇

1/12

Before going further I should acknowledge that #Bitcoin's block size limit did slow down adoption.

The blocks filled up and adoption halted until the #LightningNetwork became viable just a couple of years ago.

Happened regardless of if you think it was necessary or not🤷‍♂️

2/12

Okay so there are 4 big steps here:

1: People want crypto
2: People buy crypto
3: People want to be paid in crypto
4: People want to spend crypto

Each step represents consumer demand driving adoption, and each step needs its own tools to make this easy.

3/12

For Step 1 people need a reason to want crypto:

-More private?
-Cheaper to send?
-Better store-of-value?
-Better yield?
-No censorship?
-Do cool automated stuff?

Whatever the reason, this is the core protocol's job to deliver the basic "why" behind it all for the end user

4/12

For Step 2, people need an easy way to buy crypto.

Thankfully, in most places in the world, it's pretty easy to sign up for an exchange, go to an ATM, etc., and just buy a wide variety of cryptos.

Buying privately is another story, but still, you can get crypto.

5/12

For step 3, people need a way to get paid in crypto. Today this is either by working for a crypto company or using a service like @Bitwage or @coinbase's direct deposit service (or working for @rarepassenger)

Few services still but the demand is finally heating up on this.

6/12

And finally, after people have a reason for wanting crypto, after they are able to buy it, after they start getting paid in it, we have Step 3: people want to spend it. We're barely getting here now!

There's services like @IoniaPlatform that are coming up to make this easy

7/12

Note that this cycle repeats at different levels: some people want crypto and buy it, then are paid in it and spend it, and this increases the core value proposition, and a new pocket of society hits Step 1.

But we need to try to focus on the order of the steps!

8/12

The #BitcoinCash community largely jumped the gun and skipped to the last step. As a result, thousands of merchants have been onboarded, but almost no customers!

https://twitter.com/TheDesertLynx/status/1616494438796374017

Would be better to onboard a few, focus on customers, onboard a few more, etc.

9/12

Bitcoin maximalists for years largely stopped at #2 and mocked people who wanted to get paid in it or spend it.

They're coming around now, but adoption halted because too few were working on #3 and #4. Now everyone's playing catch-up!

10/12

Finally, far too few projects focus on the first step: core value proposition.

Most people can already use fiat, they need a reason to get crypto.

I think staking is a great easy solution to #1. @THORChain/@Maya_Protocol Savers lets almost any coin do this!

11/12

Thanks for reading! Please share this 🙏

I'm going to put out a new How to Live on Crypto series on @DigitalCashNet very soon, so watch for that!

And of course follow me for more threads like this.

12/12

@DigitalCashNet @threadreaderapp unroll please