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FinTech is an umbrella term for all advanced software technologies designed to improve access to and use of financial services by companies and individuals. The industry has a market value of more than $330 billion and is expected to grow by nearly 20% over the next six years. Cryptocurrency, with its backbone technology and the blockchain, falls under the FinTech umbrella, creating and revolutionizing an entirely new digital financial sector. For example, FTX and Circle are among the fastest growing FinTech companies that: secured $1.8 billion and $1.5 billion funding rounds in 2022.
FinTech companies are growing, and so is the number of crypto users. About 300 million people in 2022 will to use cryptocurrency — nearly 4% of the world’s population. While cryptocurrencies have become more popular with the rise of DeFi, its level of adoption indicates that most non-crypto users are avoiding participation due to a lack of knowledge about the technology. Crypto assets and blockchains seem complex at first glance and therefore difficult for the average person to understand. Taking this into consideration, people might as well stick with fiat and stop looking at digital assets.
This is where crypto education by market players comes into play. The main benefits of providing detailed, easy-to-digest, high-quality crypto education to the general population can be summarized as follows.
Related: Decentralized Education Will Reshape Learning and the Global Economy
Crypto Education Facilitates a More Open and Inclusive FinTech Industry
By making crypto education accessible to non-crypto users, the general public will feel more comfortable using cryptocurrencies in any way, be it transacting or investing in it or starting their crypto business. related companies and start-ups. Education is vital to reduce volatility over time as more people coming in can absorb the volatility and price swings. Also, education makes people better prepared to panic about crypto price movements.
However, it is not just about the financial aspects. Blockchain has countless usage scenarios outside of crypto, including implementing smart contracts and securing personal access to identifying information. By learning how the blockchain works and getting the proper guidance from an expert, the average person can integrate this technology into their business regardless of the industry – healthcare, travel, education, insurance, education and more. The growth of the FinTech industry is directly related to how advanced the general population is in understanding the benefits and limitations of crypto.
Crypto Education Raise Awareness Of Crypto Scams
The current market in 2021 also laid the groundwork for scammers trying to trick innocent people into exploring the crypto industry. There has been over $1 billion stolen in crypto scams – about one in four reported lost, more than any other payment method.
The best way to fight scammers and detect red flag 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 ponzinomic models – multi-level marketing programs – to protect their private keys and seed phrases to anyone and never hand them out. Teaching the general public to avoid crappy tokens from projects that don’t offer a useful solution or financial service and look more like a hyped marketing strategy is vital.
Crypto Education Benefits Third World Countries
Not everyone can open a bank account – and if you’re a low-income person, it’s even worse. This fact echoes further in third world countries. But with an internet connection, bankless people can create digital wallets on their phones or computers and start transacting cryptocurrencies with individuals all over the world.
Some people decide to trade crypto-to-fiat and fiat-to-crypto on peer-to-peer marketplaces, allowing users to exchange their local currencies for crypto or US-pegged stablecoins and protect themselves from currency devaluation.
In Latin America and other developing countries, many families depend on remittances from relatives who work in first world countries. It is quite expensive to do this with traditional platforms like Western Union, but here crypto and blockchain can offer cheaper transaction costs and faster settlement times. Only a wallet address is required to receive the money.
Advanced blockchain can also act as a great facilitator of educational opportunities in developing countries, thanks to the open-source nature of the technology. It is equally crucial for crypto whales and blockchain startups to seek out potential investment opportunities and initiate mass adoption of blockchain by using the same tools for educational purposes.
Related: How Electroneum Can Help the Unbanked and Those Living in Poverty in Developing Countries
Why crypto institutions should care about educating people
There is demand and institutional interest in cryptocurrencies, 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 crypto ecosystem. Crypto education initiatives and mass adoption depend directly on crypto institutions and entrepreneurs. It is not enough to develop a project or financial service – first and foremost people need to be taught how to use it. Unfortunately, digital tools and the ability to use blockchain technologies are now accessible to only a small percentage of the population.
Providing newcomers with a better educational path can help them become more interested in the world of FinTech. Therefore, more people can join the sector by building connections, companies or investments – whatever it is, and the idea is to make FinTech more accessible to the masses.
