Why Aren’t We Seeing Greater Adoption of Cryptocurrency?

Why aren’t we seeing greater adoption of cryptocurrency technology? People bandy about different reasons why. You hear everything from image problems like Mt. Gox and associations with Silk Road, to simple ignorance, as in, if people just understood how wonderful this technology is surely they would use it. But none of these reasons are likely to be the true culprit. There are actually two reasons why we’re not seeing widespread use of cryptocurrencies. The first is all crypto currencies face the chicken and egg problem. Merchants don’t want to accept a form of payment that very few customers use and customers don’t want to use a payment system that hardly anybody takes. On the surface this seems like a really hard problem to solve and it is, but it has been solved before, and it’s been solved in the financial services industry many times. So what are the adoption factors in the financial services industry? And how do we stack up against them? The proven solution to the chicken and egg problem is the following: you need payments that are faster, easier, and more secure than the alternatives, and you need to provide switching incentives — usually doing so within a confined ecosystem. Look at some examples of this, starting with credit cards. Credit cards were faster, easier, and more secure than paying with a check or dealing with cash handling costs. Credit cards incentivized switching by providing customers with grace periods and those addicting miles that we all have and use. PayPal solved the chicken and egg problem online by providing a faster, easier and more secure way to pay within the defined ecosystem of e-pay. It was better than sending checks through the mail, and at the time, typing in your credit card information online was scary. PayPal also provided switching incentives — twenty dollars just to sign-up — along with free person-to-person transfers. They delivered real value to the customer. So, how does cryptocurrency stack up against these adoption factors? Well Bitcoin and virtually every other cryptocurrency uses long cryptographic addresses and takes 10 minutes to confirm. There’s no recourse if you make a purchase and the merchant doesn’t deliver. And it’s one of the only payment systems in the world where the consumer — who hates paying fees to spend their money — is the one responsible for the fees. On all three dimensions we’re falling short. So it’s no wonder that consumers have not adopted cryptocurrency. These are the rules and we’re breaking them. The second issue is usability. If you look at the early internet this is the first browser. It’s dominated by text and hyperlinks, maybe a couple of pictures. Compare that with the internet of today — rich, interactive, customized for you. We would never go back to that picture on the left after experiencing this. Almost every cryptocurrency wallet looks something like this. It’s not a rich experience, it doesn’t deliver information relevant to the customer, you have to wait for the blockchain to sync before you can use it, and unless you want to use a centralized service and hand your Bitcoins off to somebody else, this is your experience and it’s a pretty bad one. We’re eight years in, so the question is, “What will this look like in the future?” teehan+lax s is a design firms. Back in 2006, they recognize that the internet was starting to change. See between 2002 and 2006 functional design began to enter into the marketplace. teehan+lax had a hypothesis that if they invested in companies that focused on the user experience, those companies would outperform the rest. So they picked 10 companies that they thought delivered great user experiences, and not all of them were even online companies. There was an apparel company, an airline, an insurance company, and a brick and mortar retailer. This doesn’t sound like a great investment thesis on the surface knowing what happened since, but here’s what did happen — oh and by the way, this was a time when there were no iPhones, there are no Google Maps, no Google Docs, and the number one social networking site was mySpace. There was no way teehan+lax could have known what was going to happen. And here’s what did: over the next ten years their chosen companies saw a five hundred percent return. Five times what the market delivered. User experience matters. And cryptocurrency is not delivering it as an industry. So what is Dash doing differently? How are we addressing this problem? We’re creating a cryptocurrency that has instant transactions — that will send your shipping information through the network at the press of your thumbprint , on your phones thumbprint-reader authorizing payment in a fast and easy manner. We’re adding security by introducing vault accounts. We already have balance and transaction privacy, and we’re introducing purchase protection. These address the need to be faster easier and more secure. And we have not forgotten about switching incentives. We’re developing loyalty programs, interest-bearing accounts, and free payments person-to-person. And we’re doing it all in a way that will deliver a design and experience that is consistent with other services. PayPal does a wonderful job of this and their subsidiary Venmo — if you’re a millennial chances are you have it in your pocket — these are the types of experiences that we want to create. In order to do this, cryptocurrency requires a rearchitecture, and a massive one at that, so we’ve been working on it for a couple of years already. In our first phase we delivered high-value features. That is, instant transactions and privacy features. In order to do this we developed a new layer to our network called masternodes that deliver these services to our users. We then introduced governance and a funding model that allows us to be sustainable. We’re non-ICO so our funding is continuous. Paid for directly by transaction fees and our block reward. In the second stage we’re introducing a number of firsts. On February fifth specifically. These are the technical foundational elements required to deliver the type of user experience that we’ve defined. We’re introducing DashDrive — the first decentralized object-oriented relational database. This will allow our network to serve up content very, very quickly. We’re introducing WatchDog — the first proof-of-service implementation. And we’re introducing Sentinel, which is a programmable, object-oriented governance system that will allow us to scale, creating new ways of resolving questions on the network with continued self-funding. And now we’re about to enter phase three, which we’ve been working on for quite some time. What you see here are all end-user features. You’ll be able to login with a username and password. You’ll have full remote access from any device, leaving behind the static wallet on a single device problem. Instead, you’ll have an account that can be accessed from your tablet phone or desktop. We’re introducing a merchant marketplace to help bring consumers and merchants together. When they can easily find each other they can easily engage in commerce. We’re introducing the first decentralized API, meaning merchants will be able to integrate with our network by simply copying and pasting a snippet of code into their checkout screen. And we’re working to offer security enhancements, ways to protect the consumer from both theft and unfulfilled purchases. Dash Evolution will look familiar to you. You’re going to be able to create contact list of your friends, favorite the stories you’ve interacted with, and sign-up for subscription type payments that automatically debit your account. Your information will be viewable in a clean format. This user experience will of course be consistent for desktop. It’s all the information you want and none that you don’t. How is Dash doing this? As mentioned before, we have the first decentralized government system. We spent a lot of time creating it because we recognize that in virtually all other cryptocurrencies a hundred percent of the block reward goes toward miners. Why is that when mining is only one need of a network? Don’t we need developers? Don’t we need marketing? Don’t we need support? What about a call center where customers can call in and get some help? So we allocate only forty-five percent of our block reward to miners. We allocate another 45% toward infrastructure, that is, the nodes that provide full copies of the blockchain, which gives us a high-speed and robust network. And the final ten percent is set aside for what we call our treasury. The treasury funds anything else the network needs, including the slides used in this video. At this time our annual treasury funds total over 1.2 million dollars. To put that in perspective, that’s about three times what the Bitcoin foundation pulls in. This means we develop code faster, and as the value of a Dash grows we can then afford to make more investments to , you guessed it, make a Dash even more valuable. If we were to ever reach Bitcoins market cap our annual funding would be a $170 million per year. That’s money that could be put toward a Super Bowl ad. We’re allocating treasury funds through a decentralized governance model anyone who starts a masternode — the only prerequisite being putting up a thousand Dash — can vote on these allocations. Masternodes are people who are stake in the outcome of our network so they’re the ones who decide how funds get spent. This makes us the first decentralized autonomous organization or DAO. You probably didn’t know that because we don’t have problems that make the news. The Dash DAO has been functioning since 2015 and the growth has been astounding. These are the integrations and partnerships that we signed up in 2016 alone. It’s worth mentioning that Purse.io says we’re the number one altcoin used to buy things on Amazon. That speaks to the usefulness of what we’re creating. in terms of our market cap, Dash has grown at a phenomenal pace. We’ve outgrown Bitcoin by at least double its growth rate, as well as the entire altcoin space every year we’ve existed. And we’re on pace to do it again this year. Our key performance indicators are off the chart. Our daily trading volume is up 1700% year-on-year in the last quarter. And this quarter it’s up another four times from the previous quarter. We’re beginning to receive a lot of attention. In fact, if you look back over the past 24 months there are only four coins that have consistently remained in the top 10. There have been a lot of hypes — a lot of coins that show up and then go away — the ones that haven’t left however, are, Bitcoin, Ripple, Litecoin and Dash. That’s it. You see a lot of other coins come and go but we’re consistently delivering innovation and are consistently being rewarded for it. A common question we get is, “Well, Dash sounds great, but aren’t the network effects of market leaders insurmountable?” Our response is, “Absolutely not.” Even if you at markets where network effects are extremely strong, history would suggest otherwise. For example, look at Betamax vs VHS. Betamax was first-to-market by two years. They had better picture quality, better sound, and better image stability. But VHS came along with the one feature that people actually cared about –they delivered a 2-4 hour recording time. Now you could actually record the baseball game or not have to switch the cassette out while watching a long movie. In the financial services space Diners Club was first-to-market by eight years over Visa. Bank of America launched the Bank of America card, which was the precursor to Visa in Fresno, California — a concentrated market — and they focused on a general-purpose card, whereas Diners Club had been focusing on exclusive diners in major US cities. So Visa executed in a different way saying, people don’t like carrying around all of these different store cards, we’re going to create a general-purpose card and find a way to reach penetration. So history suggests that there are ways to overcome network effects. The cryptocurrency market i’s likely to end up being more like Visa, MasterCard, and American Express. We’re going to see multiple blockchains come to dominate the space with different use cases and different priorities in terms of what their optimizing for their customers. Even so, what are “network effects” anyway? Network effects are nothing more than positive feedback loops. The more merchants you get, the more customers you get. And vice versa. We’ve designed our entire system to have a lot of network effects. Take special note of our budget system — that is, our treasury. The treasury’s network effect manifests itself in the investments we make. The investments build our ecosystem out. And as the ecosystem gets built out, Dash becomes more useful to our users. We then attract more capital and as we attract more capital you guessed it, our treasury gets bigger. This effect bleeds out into our performance and delivery, as well as our focus on the customer. Our treasury funds and the ability to allocate them via decentralized governance is one of the most powerful things Dash has going for it. So what’s next? We’re moving into the Arizona State University SkySong Innovation Center on February 1st, and are very excited about it. On February 5th we’re rolling out Sentinel, which has the foundational elements mentioned earlier that are needed to execute our long-term vision. We’re integrating with Wall of Coins which will allow users to purchase Dash with cash at 120,000 locations in the US as well as an 11 other countries. We’re hosting our fourth quarter and end-of-year conference call on February 16th. We’re the only cryptocurrency to hold a quarterly conference call for our investors. We’re very transparent about our funds, how they’re being used, what our plans are, and you’re invited to listen in on the call to learn more. And finally Dash Evolution. We’ll have an alpha release out in the middle of this year and we’re aiming to complete it for public release by the end of the year. Learn more about us at Dash.org and thanks for watching. [Music]

57 thoughts on “Why Aren’t We Seeing Greater Adoption of Cryptocurrency?”

  1. 10:05: "This makes us the first DAO. You probably didn't know that because we don't have problems that make the news" BURN

  2. i'll be glad to give you my two cents worth on why we haven't seen mass adoption as of yet. first reason is that it's hard to understand. most people in cryptic currencies today are very smart people. you take it for granted because you know your way around a computer that everyone does. it will have to be easy to use and understand. the second reason is probably the most important and that's because cryptic currencies are not regulated. yeah i know that word makes you people cringe but if we are going to see mass adoption regulation will have to be a necessity. People who have money their number one concern is not to lose what they have and their fear of not losing overrides their love to make money. just like how i got fucked on that fake dash website where i lost about 100 dash. i'm just fucked. out about 1000 dollars. i'd like to own some dash but after that loss i won't trust any wallet. i only use coinbase.com if coinbase started offering dash i'd buy some dash. that's becuase coinbase is regulated and insured. i know most of you guys are free will anti government libertarians but no cryptic currency is going to get mass adoption without being regulated. that's the fact jack

  3. I've been trying to buy Dash for weeks and can't seem to figure it out. Yes, I'm tech impaired but as I tried to buy Dash I did buy some Bitcoin. I still want some Dash! It's too difficult for this 60 year old to simply buy Dash!

  4. Outstanding. It's such a simple thing, yet no one else seems to have thought how to take the amazing technology that is cryptocurrency and actually mold it to serve real human beings. So far I'm not seeing any tech other than Dash that's trying to achieve basic usability for the average person.

  5. Hey Amanda, is it possible for one person to own many masternodes? If so is it possible for 1 or a few rich people to own enough nodes to gain a significant power in the treasury vote and take advantage of treasury funds for personal interests outside of growing the Dash network?

  6. I been a subscriber for a couple of months now and I never owned dash until now. You have convinced me, I give up. I'm going to sell a couple of my bitcoins.

  7. Thanks, for the clear presentation. The presentation made in Miami had a bad audio and I lost some important information.

  8. As a former Bitcoin holder and advocate, I moved my BTC to Dash. Every time I tried to convince myself by singing from the hymn sheet of the gospel of Satoshi I faced internal and external questions of the impracticality of commerce and its ease of use. It's been quite a journey for me and as a tech enthusiast I have been following Bitcoin closely since early 2013.

    If you've ever been in a trendy coffee shop or bar that accepts Bitcoin or used a Bticoin ATM you soon realize it is not fit for purpose with up to 10 minute confirmation times however noble it's original intentions were. I will always be grateful to Bitcoin for paving the way forward. DASH has evolved from Bitcoin solving the problems and headaches of making it a viable mainstream solution and true alternative currency. Simply put DASH is Digital Cash.

    The governance model, development and innovation of DASH makes every week feel like Xmas. I love the DASH communities open and completely transparent nature. I know who is doing what with DASH and there is no mystery man behind the curtain.

    DASH was already a superior alternative to Bitcoin in terms of technical specifications. DASH Evolution though is a game changer! I tried to get friends and family in Bitcoin countless times but consistently failed as the learning curve was always too much of an issue. It's simply not fit for purpose for mainstream adoption. However with DASH things are different if your grandparents can use online banking and PayPal they will be able to use DASH Evolution with ease.

    DASH allows people to take back control and become their own bank free of counter party risk. It has been widely reported that half of the world's adults don't have a bank account. However the other half rely upon privately owned banks to not only hold their money but charge them fees for spending it. DASH is the new disruptive technology that has evolved from Bitcoin.

    I simply can't replace my bank account with Bitcoin. I can't make a joint account with Bitcoin. I also can't pay my direct debit or mortgage payments with Bitcoin. It's just not practical to have multiple separate Bitcoin wallets with different balances for each device I own. But with DASH Evolution the ease of use and practicality solves all these problems. This is a great thing for consumers and merchants. It means much lower fees and I can send money anywhere instantly in the world without the hindrance of delays, transfer fees, withdrawal fees or crazy currency exchange fees.

    I strongly believe DASH will make the banking system as we know today obsolete. It's like comparing the fax machine to email. We now have a solution that is fit for purpose and is true to the values of freedom, liberty and independence.

    Here is a simple infographic on how DASH differs to Bitcoin for those that are interested: http://i.imgur.com/4Ytb3P4.jpg

    If you have any questions or want to simply know more about DASH I really recommend paying a visit to https://www.reddit.com/r/dashpay/ where you'll find a friendly welcoming community of people. Also make sure you subscribe to this YouTube channel as Amanda gives updates every Wednesday!

  9. so when I ask on poloniex why don't people love DASH? they reply with "Google DASH instmine" so there are ostacles beyond all your good information! I want to see Dash succeed!

  10. Vhs won because of the porn industry chose that format, you have to look for the unexpected useful platform, sometimes logic doesn't make a winner. I appreciate a the info though, will look into it

  11. About the Call Center, which is a wonderful idea IMO, is a proposal has been made yet to the monthly voting system?

  12. This all sounds like a wonderful dream and I'd like to get Dash right away. But my one concern is the susceptibility of the website to the government. Take Coinbase for example. They allowed government regulations before they even "broke laws". Now Coinbase requires your social security number, legal name and address. It's no different than regular currency. I'd want to know why Dash is so independent, are the company owners/workers just more willing to be independent from the state? Or is the model successfully making it impossible for the government to track/hurt anyone?

  13. I'm a fan of Dash, although I am diversified – cryptocoinwise speaking. One thing that I cannot seem to get my head around is: to what extent can the governance model become a liability, meaning it could be taken over, subversed, bribed, threatened. While I have no doubt the guys running the show are wonderful, history is full of these examples. In the end, those with money and influence meet, eat and make a deal. Mostly for their own good of course. Is there not a risk of the masternodes becoming the new Davos elites?

    Don't become too good. Competition must remain. 😉

  14. Joining an incubator at this point of the project is beyond exciting. the environment is highly conducive to rapid advances for a nascent project like Dash.problems will have potential solutions much quicker now.
    My hat is off to Evan and the entire DASH team for forging ahead and getting to this point. my expectations for this project are riding a new high. 🙂
    It's ever more realistic on a consistent basis. The day is close that will see people getting out their phone and opening their wallet's ap containing the same amount of DASH that they use to typically carry in cash on a daily basis for buying a cup of coffee or 10 bucks of gas.
    but rather than a separate cash wallet they tote around in a pocket or purse their NFC equipped phone will pay for their transactions with a quick "beep or chirp". no change to carry around for the remainder of the day, just a fast precise interaction…..while at the same time the guy who paid with a Bitcoin wallet is still standing around twiddling his thumbs for 10 more minutes before he's back in action. DASH is getting there boys and girls.

  15. Amanda you guys have done the great job out there, already posted it onpolish bitcoin group at FB 😉
    Dash is the future of crypto payments!

  16. PayPal is garbage.Crypto currencies won't happen until the real people in power want it changed.Just like everyone who tries to make a gold backed currency they end up dead.

  17. One thing that Paypal did well that cryptocurrencies can emulate is to focus on users that desperately need it. Paypal's biggest users in the beginning were semi-shady eBay powersellers who could not get anyone else to process payments for them.
    DASH seems to be targeting a more general userbase. The everyman. This is probably not the way to go. In the abstract, you have to find the market segment that is desperately searching for an answer. Simply reaching one group of users that desperately needs DASH would put DASH in the top 3.

  18. She forgot to say about attacks from governments, bankers and others who are afraid about these technologies.

  19. Question: If the objective of Dash is to become "digital cash" why is the growth rate of Dash's (market cap) touted as something great rather than Dash's average daily transaction rate? I get that market cap CAN be important to the objective of being used as money since it increases potential spending power. But it also increases speculative hoarding, which is a similar issue as with Bitcoin, as it is contrary to the objective of becoming a commonly used currency.

  20. That's a outright lie the first auto-governance blockchain was Bitshares, the masternode stuff came because the x11 algo isn't really anon (just 2 tx per block) they try to implement ring signatures resulting in blockchain bloat so they came with their masternodes, masternodes equals more points of failure, in that regard Monero is far superior because it don't relay in masternodes to anonimity, the merit that Dash has is the developer team plus the great comunity but some facts are very twisted in this infomercial, we all recognize the achivements of Dash but Dash seems unwilling to do so when it comes to other projects disguising the truth.

  21. I do not like the sound of that 10% going to treasury, this to me sounds like, when and if Dash grows a lot, there will be shit load of money to be taken by someone (most likely few individuals that crated Dash) as who needs hundreds of millions of programmers etc to code this, I would presume by the time Dash is so big in the market, it would have accomplished most of what its means to deliver already, which means more developments would decrease, not increase… yet the treasury would keep growing. Smells fishy to me. I would prefer cryptocurrency that would not make people take advantage of others. It's fine for miners and node supporters to benefit from keeping the network working and supporting it, but surely the people that created Dash could make plenty of money already simply by owning many Dash currencies when they created them in very early stages… same like some people had thousands of Bitcoins when they were worth next to nothing… and now they are rich… and the Bitcoin hasn't even started being mass adopted yet.

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  23. I love the idea of making it more user friendly so that the average ppl will use it and get mass adoption. Only bad thing I see about Dash is that is not really descentralized. What will happen when the gov comes and regulate it, over tax you guys for the profit you're making with 50% income tax etc. Users will have to pay with fees & it will be just like another paypal. In the case of bitcoin the gov has nowhere to go, no poket to put their hands in, no one they can go to and extort… And I think that's the main reason for cryptos to exist.

  24. I started off very skeptical about Alt-coins but quickly fell in love with Dash and Ethereum. The problem is that buying them with Fiat is often a long or expensive process, especially in the UK. We have sites that take card payments but they charge 40% on top for the priv. I'm having to trade with people who insist I send 3 forms of ID to them every transfer. It's slow and annoying. Plus no-where accepts them. If Dash can get around these things, it will be worth Trillions

  25. … Annualy over 1.2 million dollars … and when I type "dash wallet" in AppStore only shitty games show up. I really like Dash but I've been waiting for iOS wallet for so long now. :/

  26. Another Slam Dunk simply brilliant. http://letthemconfectsweeterlies.blogspot.se/2016/05/extraordinary-claims-require.html Amanda is Satoshi!
    http://theconquestofdough.weebly.com/blog-progress-on-the-book-and-selected-blogs-of-yore/satoshi-wtf-proofofwork-or-proof-of-stake-web-freedom-under-seige #AmandaisSatoshi

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