Opinion Articles Present Diverse Views, Not Representative of “WEB3+”
The Evolutionary Path of Digital Currency Rohit Wad, Chief Technology Officer at Binance, stated that achieving mass adoption in the crypto industry requires more than just ETFs.
Recently, the approval of a Bitcoin spot ETF in the United States marks a significant milestone for the development of Bitcoin and cryptocurrencies, especially in terms of regulation and institutional acceptance. However, from a technological standpoint, the enthusiastic adoption of ETFs also serves as a reminder that to achieve mass adoption, the crypto industry must continue to reduce friction in user experience.
While the market appears to be riding the ETF wave into a bullish cycle, native cryptocurrencies and Web3 enterprises must not remain stagnant. Many institutional and retail investors are turning to ETFs due to the friction in user experience. Users often have to go through numerous steps to use wallets or exchanges, spend significant time learning best practices, and safeguard against scams and hacks—all of which can be addressed through product design.
We can compare Bitcoin to gold to understand why both commodities are suitable for the ETF market. Ordinary investors do not want to physically hold gold bars due to concerns about safe and convenient storage, hence the creation of gold ETFs. Similarly, Bitcoin has long been dubbed “digital gold” for its scarcity, without the traditional costs of transportation and storage. However, cryptocurrencies are still in their early stages of development, and products like wallets and exchanges remain too complex for the majority of people.
Bitcoin ETFs help investors mitigate entry barriers by managing complex issues such as securing mnemonic phrases. In return, investors are willing to bear ETF fees and entrust ETFs to custody their assets.
If we can eliminate friction in user interaction with cryptocurrencies, we can certainly increase adoption and enable more people to participate. Our long-term goal should be to empower users with knowledge and tools to directly engage with and manage their cryptocurrencies, making cryptocurrencies more accessible to everyone. We must build products that are user-friendly, secure, and intuitive to make cryptocurrencies more easily usable by all.