A report published by ZeroHash on Tuesday highlights the new wave of crypto adoption is being inspired by a perception of renewed trust in the sector.
Crypto went through a very challenging time in 2022 as the bull market was followed by the bear, and several leading lights in the industry were found to be wanting, as fraudulent bad actors came to the fore, leading to an all time low in trust and confidence in exchanges and other players in the crypto sector. Ryan Grace, Head of Digital Assets, tastytrade said:
“Trust is so important in crypto given the uncertainty of the nascent industry, the evolving regulatory landscape, and the perception that crypto is the ‘Wild West,’ given some industry participant’s recent failures to put customer interests ahead of their own.”
However, as 2023 has progressed the crypto industry has started to see a renewed growth in trust and optimism, with more consumers now wanting to include crypto in their portfolios.
According to the ZeroHash report, consumers are reengaging with crypto because they believe that it is here to stay, and so now, on average, three out of every four consumers kept their interest in crypto or have increased their engagement since 2022.
Source: ZeroHash Trust Report
An interesting development is that consumers put more of an emphasis on regulatory standards and safety before investing in a crypto project, with reputation one of the other foremost deciding factors.
Source: ZeroHash Trust Report
In fact, reputation was the key consideration for consumers in the US, UK, Australia, and Brazil when choosing a company to use to buy and sell crypto. Fees charged are a lesser consideration compared with reputation and regulation.
The report goes on to state that “education, reputation, and utility will drive further adoption”. It posits that “consumers simply want a solution that’s better than what they have access to today”, and crypto and blockchain appear to fit that bill.
“The best way to engender trust with consumers is to create products that work seamlessly and consistently. There is no replacement for quality service.”
Pietro Moran, Director of Crypto, Shift4.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
