Crypto education can transform the fintech industry. Method is as follows.
Opinion holder entrepreneur You are the contributor.
FinTech is a collective term for all cutting-edge software technologies designed to improve access and use of financial services for businesses and individuals. The industry’s market valuation exceeds his $330 billion and is expected to grow by around 20% over the next six years. With its underlying technology and blockchain, cryptocurrencies are under the umbrella of fintech, creating and revolutionizing a whole new digital financial sector. For example, FTX and Circle are among the fastest growing fintech companies, with $1.8 billion in 2022 and he secured a $1.5 billion funding round.
Fintech companies are growing, as is the number of cryptocurrency users. About 300 million people will use cryptocurrencies by 2022, which is about 4% of the world’s population. The rise of DeFi has increased the popularity of cryptocurrencies, but its level of adoption indicates that most non-cryptocurrency users avoid participating due to a lack of knowledge about the technology. Blockchain is complicated at first glance, making it difficult for ordinary people to understand. Considering this, people are better off staying in fiat currency and never looking at digital assets again.
This is where crypto education provided by market players comes into play. The most important benefits of providing detailed, digestible, and high-quality cryptography education to the general public can be summarized as follows:
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Crypto Education Promotes a More Open and Inclusive Fintech Industry
By making cryptocurrency education accessible to non-cryptocurrency users, the general public will be more comfortable using cryptocurrencies in some way, whether it be trading, investing, or starting a cryptocurrency-related business or startup. Become. Education is essential in reducing volatility over time, as more people can help combat volatility and price fluctuations. Education also makes people better prepared when faced with a panic about cryptocurrency price volatility.
But it’s not just about money. Blockchain has many use cases beyond cryptocurrencies, such as implementing smart contracts and protecting personal access to identity information. By learning how blockchain works and getting good guidance from experts, the average person can apply this technology to their business, regardless of industry such as healthcare, travel, education, insurance, or education. can be integrated. The growth of the fintech industry is directly correlated to how well the general public understands the benefits and limitations of cryptocurrencies.
Crypto Education Raises Awareness of Crypto Scams
The current market in 2021 has also laid the ground for scammers looking to dupe innocent people eager to explore the cryptocurrency industry. Crypto fraud has stolen more than $1 billion from him, with about one in four reported lost, more than any other payment method.
The best way to combat scammers and detect red light projects is to understand how they work to protect yourself at a higher level. For example, newcomers should be taught how to identify a project using the Ponzinomics model (a multi-level marketing scheme), so that private keys and seed phrases are protected and not given to anyone. It is important to teach the public to avoid worthless tokens from projects that do not offer useful solutions or financial services and look like exaggerated marketing ploys.
Crypto Education Benefits Third World Countries
Not everyone can open a bank account. It’s even worse for low-income earners. This fact resonates even more in third world countries. But with an internet connection, unbanked people can create digital wallets on their phones or computers and start trading cryptocurrencies with individuals around the world.
Some people decide to trade crypto-to-fiat or fiat-to-crypto in peer-to-peer markets, where users exchange their local currency for crypto or US-pegged stablecoins. to protect themselves from currency devaluation.
In Latin America and other developing countries, many families rely on remittances from working families in developed countries. Traditional platforms like Western Union cost a lot to do this, but with cryptocurrencies and blockchains, transaction fees are cheaper and settlement times are faster. All you need to receive funds is your wallet address.
Likewise, advanced blockchains can serve as excellent facilitators of educational opportunities in developing countries thanks to the open source nature of the technology. It is equally important to look for investment opportunities and start mass blockchain adoption using the same tools for educational purposes.
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Why cryptocurrency institutions should care about educating people
Demand and institutional interest in cryptocurrencies exist, but many in the industry have invested in them while overlooking the importance of providing the average user with an easy way to understand the cryptocurrency ecosystem. Crypto education initiatives and mass adoption are directly dependent on crypto institutions and entrepreneurs. Developing projects and financial services is not enough. First and foremost, we have to teach people how to use it. Unfortunately, today only a small portion of the population has access to the possibilities of using digital tools and blockchain technology.
Providing new entrants with a better education path may make them more interested in the world of FinTech. So more people can join the industry by making connections, building businesses or investing.