Barrier to Entry

Definition ∞ A barrier to entry is any obstacle or cost that prevents or makes it difficult for new participants to join a market or system. These impediments can include high capital requirements, complex technical knowledge, or regulatory hurdles. Such obstacles limit competition and can concentrate power among existing entities. Reducing these barriers often promotes broader adoption and innovation.
Context ∞ Crypto news frequently discusses barriers to entry for both individual users and institutional investors in the digital asset space. High transaction fees, complex user interfaces, and unclear regulatory frameworks are common topics. Efforts to simplify access and improve user experience are key areas of development aimed at expanding market participation.