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ManBearPig

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    ManBearPig reacted to Worldcryptoboss in Barrier of Entry (and what it means for current investors)   
    Agreed. I highly doubt the majority of American (and worldwide) population will ever buy into crypto. 
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    ManBearPig got a reaction from Worldcryptoboss in Barrier of Entry (and what it means for current investors)   
    50% of Americans don't have anything saved for retirement and would struggle to come up with money for a 1,000 dollar unexpected expense let alone have money to invest/trade into anything else.  If someone works for an employer that is lucky enough to furnish 401K plan, not everyone elects to opt into that benefit. It's certainly less likely they would set up an IRA on their own accord.  You are absolutely right in the respect that only a small minority will actually open a brokerage account to invest in individual company stocks, bonds, commodities, etc.  Most would buy into mutual funds through their 401K/IRA/brokerage accounts. Anyone who gets into investing into cryptocurrencies for the first time is going to be skeptical and a lot of the barriers to getting started that the original poster did a good job of clearly identifying is going to hold many back.  That is what I have learned with talking with some of my peers that are on the fringe of investing.  A lot of improvements have been made and will continue to improve.  My crystal ball tells me even if you could capture more of a slice of active traditional investors with even a fraction of their portfolio being allocated into digital assets would bring in a new wave of people.
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    ManBearPig reacted to Plato in Barrier of Entry (and what it means for current investors)   
    I recently read a post regarding the sale of cryptocurrency on marketplaces such as eBay. Specifically, the poster linked to a post: $25 for 25 XRP (roughly). 
    This has been happening for quite some time. But what does this mean?
    This, I believe, proves a very important point: Crypto is especially hard to secure for the common person. Thus, a person is willing to pay a 3X markup to purchase the currency in such a simplified manner, so as to evade the painstaking purchasing process. 
    While this point has been raised previously, I believe it is an often overlooked topic in regards to current price. The importance of barrier of entry--and obstacles in securing crypto--are vastly understated, in my opinion, when discussing price and valuation. 
    Perhaps you, like me, have forgotten about our first foray into purchasing crypto. But, as I reflect on my experience, I remember these things:
    1. Relentlessly Googling "Ripple", "Cryptocurrency", "Exchange", "Bitstamp", "Binance", "Crypto taxes", "What's a cold wallet?", etc. 
    2. Attempting to get verified. 2 weeks for Binance; 7 months for Bitstamp (although these time frames have decreased, I believe).
    3. Sending pictures of my license and other very sensitive personal information to a German-based cryptocurrency exchange. 
    4. Grasping the concept of fund transference between an exchange and a "wallet". 
    5. Waiting and waiting and waiting for money to clear in Coinbase. 
    6. Understanding how to buy ETH/BTC/LTC, transfer to exchange, purchase XRP, then transfer to wallet. 
     
    My point is this: It's extremely overwhelming and intimidating. Just the process itself. Now, try to complete a process while surrendering personal information... and your precious fiat.
    Barrier of entry, lack of perceived security, etc. These are the primary reasons for a minimal number of entrants and potential investors. Which is reason for less liquidity. 
    There are very, very few people truly invested in XRP (or most any other crypto, for that matter). Mostly because the process is painstaking. If the process was simpler, and was perceived as being safer, the total market cap for crypto would be very, very high (I believe).
    The counterpoint is: XRP's liquidity should mostly be rooted in banks/financial institutions. Sure, this is true. However, immense liquidity would require consumer investment. Consumer buy-in. Right now, the majority of people don't understand cryptocurrency, and they have no idea what XRP is about. Those who are aware of the crypto space and do understand what Ripple is about... Well, most of them haven't fully invested, or they haven't invested at all. Why? Barrier of entry. 
    These are early, early days. We are just at the beginning. Nowhere near mainstream. Last winter's ride to $3+ was a small "ripple" in the cryptosphere. Such a rise will become a pinprick on our timeline in 5-10 years. 
    Interest is high. Demand is, already, moderate. Supply is there, but very, very hard to access. 
     
    Just my two zerps. 
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