Topic: Which element of cryptocurrency do you think is tough to understand? (Read 177 times)

a. they dont know where to spend it.. thus think its not a currency because they seen no real world usage of it

b. they are informed of bitcoin(by idiots) as a 'get rich quick' scheme. thus they dont see it as a viable currency because they are only informed about getting rich.. so think its a scam

c. they are not informed about what differences different coins offer and why bitcoins value underlying the market is higher then others. so they think bitcoin is just speculatively pumped by 25000x above a coin offered for $1.. so they dont trust bitcoin and think it can crash to $1

..

so, the solution
dont explain bitcoin like a greedy wallstreet salesmen talking about it like a get rich scheme
instead show local retailers nearby that accept it/prove its usefulness

explain how some altcoins only cost <$35 of electric combined to get a newly generated coin. and bitcoin cost $15k+ a coin. and so the markets speculate from that point and above

some speculate by 1x-6x above value cost. some speculate by 45x
more speculations means less value is protected. thus stay away from those extreme high speculations

explain how some coins have deflationary supply and some dont. and how that alters the value/cost fundamentals too

If you are a non-techy person or don't have any idea how code works from Bitcoin or how Bitcoin was created with a bunch of programming language codes, that's tough to understand. For me, that's the common thing that makes other people find Bitcoin difficult to understand because they don't really know how Bitcoin was created from the scratch, like these technologies or terms that were used.

The concept of bitcoin/crypto being decentralized and non-custodial. When I try to explain this, they're always like "what if the Bitcoin founder hacks your wallet" or "what if the government shuts down Bitcoin". People in general have been very used to centralized platforms that they almost always need someone to trust and help them when problems arise.

I think the main thing when it comes to lack of bitcoin knowledge or understanding is the same thing as all investments, or financial tools..lack of putting forth effort to learn.  People struggle to understand bitcoin in large part because they simply don't try and teach themselves!!  As a financial advisor I can say this with 100% certainty because it's the sad truth.  I talk to client about bitcoin all the time and they don't understand it because they haven't put forth almost any effort to learn how it works.  It's sad really.

Whenever we decide something relative to cryptocurrency we should not suggest on choosing cryptocurrencies. The best choice is to brief them about the different cryptocurrencies available. We should not enter in anyone's investment, they should be let to invest without any intervention.

I had an experience with a friend. He requested suggestion and I gave him good learning about cryptocurrencies and asked him to choose the coin of his own. He choose one cryptocurrency randomly, and booked good profit. This was completely out of luck. If I've given suggestion, it might've ended in loss.

volatility is hard to understand as there are so many factors involve when it comes to the up and down movement in the market. it is also hard to explain as you don't know exactly what contributing factors are in play. so we are just left with speculation. though there are some major news that have impact. but the daily movement, is the combination of various factors.
this is why some people won't understand what's happening because it seems we are blind with the situation. we will only know the price level once it finished.

Volatility I guess. When I tried to open the idea of cryptocurrencies to some of my colleagues, they were throwing questions at me such as "why would it be a good investment if its market price changes a lot?". I think what really confuses them is to how risks would be managed and how profit potential would be controlled. Even on my end, aside from the idea that the market price is determined by demand, I cannot escalate other means or reasons to explain how volatility works. This would be for sure the dilemma of other non-investors because the first thing they would be concerned of, is the security of their funds from tendencies of loss.

Most times they have to understand what is all about before venturing into it, i.e, they aren't conversant with it maybe they needs more knowledge to understand the full configuration on how those networks operates. There are lot of people out there who doesn't want to go into bitcoin or cryptocurrency gateway and they have much confidence over fiat than using cryptocurrency. During my early stage I was finding it difficult to understand bitcoin network because I was too familiar with Ethereum chain, so I guess this could also restricts others as well.

People don't understand blockchain. They don't understand how and why transactions are formed into blocks. They don't understand how cryptocurrency is decentralized and how it makes it different from fiat currency. People don't understand the crypto market, they often take a maximalist stance - either as a baseless belief that the market will go up, or that it will all imminently crash. They don't know about the halvening cycles and bullish/bearish periods that are tied to them.

Most people are afraid of joining cryptocurrency because of price fluctuations and the inability to predict the exact market value of a coin at any given time. This uncertainty is a significant barrier to many people investing in cryptocurrency.

Those who were able to overcome that fear still find it difficult to cope with market trends and, as a result, must adapt to it with a changed mindset in order to simply believe and accept the outcome of their investment without feeling guilty about it. Others may not see this as a barrier because they understand market trends and believe in speculations about them which works for them.

For me the toughest thing to understand is the best time to sell, how can you be sure that the time is when you can get the best profit for that period in time.

There are some parts of cryptocurrencies where it's a bit difficult for common people to understand, like what is gwei, how to use metamask, what is bitcoin protocol, ethereum matic, etc, where to trade crypto, the relation between blockchain and cryptocurrency, the difference between crypto with digital money, what is price volatility and speculation. Things like this, in my opinion, are difficult for ordinary people to understand cryptocurrencies and how to use it in their transaction.

Even veterans in the market still fall for this. Though it’s easy to say and tell yourself that this is just a part of crypto’s high volatility, but when you’re in the real situation and you spend your hard earned money to purchase bitcoin, then it’s price suddenly crash, you will really see yourself panicking thinking if the price can still recover or it will drop consistently. Good thing if you are not bothered and still continue to invest for long term, but for most of us particularly those newbies in the market, we will be thinking of cutting our losses and just sell the coins at a lower price, which I think will put us losing in the end.

A few things.


What's it good for.
Since Bitcoin is still very early in its adoption the fact that you can't really use it to buy anything (except in a few small pockets around the world) means people generally think its not useful. And they don't yet understand the value of hard money compared to weak money like national currencies.

Not understanding the value of hard money.
This makes people always think "oh maybe Bitcoin won't go up again" so they think it is very risky and always at risk of going to zero. Even my mom is always worried about my money because all my money is in Bitcoin and everytime she asks I have to explain to her that Bitcoin will always keep going much higher in the future so its fine this is just a normal once in four years bear market. She's always asking me "how is bitcoin doing" so she's very concerned with short term price movements of my money, which brings me to the next thing.

People don't understand the difference between long term risk and short term volatility.
Because Bitcoin is volatile they think it is extremely risky. They view risk from the point of view of "will it ever go down a lot for any amount of time?" It seems REALLY hard for people to look at long term price charts and see the growth and instead they just focus on only the times Bitcoin has crashed and so they think it is very risky and very easy to lose money.

The difference between Bitcoin and Crypto.
People tend to think all cryptocurrencies are the same and they don't understand why Bitcoin is unique. So some people even think Bitcoin is not scarce because they actually think all cryptocurrencies are the same so they think if anyone can just make another cryptocurrency that means Bitcoin isn't scarce. Some of these people are trolls but some just really don't understand the differences and they think there is no difference between cryptocurrencies so they don't understand why Bitcoin has value when new cryptos are made all the time.

They don't understand what it means to be decentralized.
So people think Bitcoin can just be gotten rid of by the govt and then it'll be gone. They also don't realize how big Bitcoin is so outside of totalitarian regimes no govt is just gonna ban Bitcoin. They basically don't understand the reason Bitcoin was created and they think the govt can just decide to end it.

They don't understand the difference between negative things happening in the crypto industry vs Bitcoin.
If cryptocurrency from a website gets hacked they think Bitcoin got hacked. If there is a crypto scam they think Bitcoin is a scam. If some altcoin collapses they think Bitcoin failed. If a crypto exchange goes under they think Bitcoin failed. Another mom story, in December my mom was very worried about my Bitcoin because she heard about FTX and I told her its fine its just a normal bear market and a big exchange went bust its just a temporary thing and she was like "no I read it is different this time because of FTX" and I had to try to convince her one exchange going down does nothing to stop Bitcoin.

Hope this question is being answered correctly but I think the toughest thing to understand about crypto is the technical side of it which many don't even dare to dive into...

I also believe that the fiat system of it being centralised has made it difficult for people to really venture into crypto because they don't see a familiar setup of Bitcoin being centralised and the prefer to watch from the side lines....not knowing BTC means financial freedom for them.

I think price fluctuations and volatility boarder around crypto being decentralized and the whales free to manipulate price in a way they do control price.

The most difficult thing to understand in cryptocurrency is volatility or price fluctuation.
I mean if everyone understands where the price will reach before it will drop. There'll be no need for panic. Maybe we buy low when it goes to that price of the highest target, we'll all sell.
And again, we'll wait till it goes to the lowest, we buy again and repeat the process.

That there are different ways to use them, some don't even require interacting with them (which is the majority of how people "use" them).

And that very little of that utility value is reflected in price.


That's actually one of the easiest. There are a handful of white papers worth checking out (well, I like to think only one or two other than Bitcoin's but I haven't read them all). You'd be surprised to realise most new projects don't even bother coming out with one because they know they got nothing new to bring to the table.

The toughest element to understand in cryptocurrency is how to verify if anything written in the whitepaper is true, like Bitcoin. Most of people just rely with any words written on the whitepaper without verifying anything since there's no way to verify it. I think if there's a thing can't be verified on the project, it's better to avoid it. But do you think do you will have a lot time to check every project's whitepaper? there's around 20,000 cryptos.

Most of the people are aware of cryptocurrency. They know every thing about it like how to select best coin, how to use it and how to done payments using cryptocurrency payment getaways but there are a lot of people, for whom crypto is not believable. They know nothing about it or may be have little knowledge about it. So for them what is the most difficult part to understand or why they are not getting into it ?