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FinTech is an umbrella term for all advanced software technologies designed to improve the access and use of financial services by businesses and individuals. Industry she has The market is valued at over $330 billion and is expected to grow by approximately 20% in the next six years. Cryptocurrency, with its underlying technology and blockchain, falls under the FinTech umbrella, creating and revolutionizing an entire new digital finance sector. For example, FTX and Circle are among the fastest growing fintech companies Believer $1.8 billion and $1.5 billion funding rounds in 2022.
Fintech companies are growing, and so is the number of cryptocurrency users. About 300 million people in 2022 will use Cryptocurrency – almost 4% of the world’s population. While cryptocurrencies are becoming more and more popular due to the rise of DeFi, their level of adoption indicates that most non-crypto users are avoiding participation due to a lack of knowledge regarding the technology. Crypto and blockchain assets seem complex at first glance, and therefore difficult to grasp for the average person. Given that, people might just stay with it and never look at digital assets again.
This is where the coding education provided by the players in the market comes into play. The most important advantages of providing the general public with detailed, easy-to-understand and high-quality coding education can be summarized as follows.
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Crypto education facilitates a more open and inclusive FinTech industry
By making crypto education available to non-crypto users, the general public will feel more comfortable using cryptocurrencies in one way or another, whether it is dealing with it, investing in it, or starting crypto-related businesses and startups. Education is vital in reducing volatility over time because more people coming in can face the volatility and price fluctuations. Education also makes people more prepared to panic over cryptocurrency price movements.
However, it is not only about the financial aspects. Blockchain Many use cases External encryption, including implementing smart contracts and securing personal access to identifying information. By learning how blockchain works and receiving proper guidance from an expert, the average person can incorporate 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 the progress of the general public in understanding the advantages and limitations of cryptocurrencies.
Crypto education increases awareness of cryptocurrency scams
The current market in 2021 also prepared the ground for scammers trying to deceive innocent people who are eager to explore the cryptocurrency industry. Done more than 1 billion dollars stolen In crypto scams – one in four lost money, more than any other payment method has been reported.
The best way to combat scammers and spot red-flagged projects is to understand how they work to protect yourself at a higher level. For example, newcomers should be taught how to define a project with ponzinomic models – Multi-level marketing schemes To protect and not hand over their private keys and initial phrases to anyone. It is necessary to teach the general public to avoid worthless tokens from projects that do not provide a useful solution or financial service and look like an inflated marketing strategy.
Crypto education benefits third world countries
Not everyone can open a bank account – and if you’re someone from a low-income background, it’s even worse. This fact has a greater resonance in third world countries. But by being online, non-banking 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 cryptocurrency and fiat to crypto on the peer-to-peer market, allowing users to exchange their local currency for cryptocurrency or US-pegged stablecoins and protect themselves from currency devaluation.
In Latin America and other developing countries, many families rely on remittances sent by family members working in first world countries. Doing so with traditional platforms like Western Union is quite expensive, but here’s where cryptography and blockchain can provide cheaper transaction fees and faster settlement times. Only the wallet address is required to receive funds.
The 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 important for crypto whales and blockchain startups to research potential investment opportunities and initiate mass adoption of the blockchain using the same tools for educational purposes.
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Why crypto organizations should care about educating people
There is institutional demand and interest in cryptocurrencies – but many in the industry have invested in them while ignoring the importance of giving the average user an easy way to understand the crypto ecosystem. Cryptographic education and mass accreditation initiatives are directly dependent on crypto organizations and entrepreneurs. It is not enough to develop a financial project or service – first of all, people need to be taught how to use it. Unfortunately, digital tools and the usability of blockchain technologies are now only accessible to a small percentage of the population.
By providing a better educational path for newcomers, they may become more interested in the world of FinTech. Therefore, more people can join the industry by building contacts, business or investing – whatever it is, the idea is to make FinTech more accessible to the masses.