The Biggest Hurdle for Altcoins is About to Change
The biggest hurdle for Altcoins is that you can’t easily purchase them. That’s about to change.
Before we get to why that’s going to change let’s break down why Altcoins have struggled to attract widespread investment.
The first reason is that there is a certain level of technical knowledge that is required to purchase Altcoins. This is because Altcoins aren’t listed on easy to use exchanges. To purchase an Altcoin you have to first purchase Bitcoin and move it to another exchange that offers the Altcoin you’re interested in. For most people, the amount of time and effort involved makes them disinterested.
The second reason more people don’t invest in Altcoins is that the whole process is a bit terrifying. To invest in Altcoins you have to not only deal with exchanges that aren’t easy to use, but more importantly these exchanges don’t necessarily look legitimate. This is a huge turn off because without a certain level of trust, few people will invest large sums of money, let alone any at all.
So this brings up the important question: How will this problem be solved?
The answer is simple. Exchanges have to be more trustworthy and make it easier for people to purchase Altcoins.
To expand upon this, let’s look at Coinbase. The reason Coinbase gained such massive popularity is because they make the process of purchasing Bitcoin, Ethereum, Litecoin, and Bitcoin Cash fairly easy and seemingly trustworthy. All a person looking to invest has to do is pull out a credit card or debit card and select the amount of money they want to invest. Done. The money is held on Coinbase in the cryptocurrency they purchased until they decide to sell. There is no transferring of Bitcoin or sketchy looking exchanges involved.
This is where we fast forward. One of the largest exchanges in the world, Bittrex, may be solving this problem. Regulation of the US Dollar buying Altcoins is what has prevented Coinbase from offering Altcoins, but Bittrex is solving the regulator issues. Bittrex will soon be adding a way to directly use credit cards and debit cards to directly purchase Altcoins. As soon as this is possible, one of the biggest hurdles hold back potential Altcoin investors will be removed.
The main questions left now are: When will Bittrex add US dollar pairing with Altcoins and to what extent will this start moving the market.