Cryptocurrency Payments in Traditional Retail System
One of the debates that anti-crypto community has is how cryptocurrency can be used as a day to day transaction currency like USD or EUR? That's a fair argument on their side, because if there is no use case than the only purpose it serves is store of value such as; gold and silver. Economists argue that cryptocurrencies can not handle with millions of transaction per second and some of them have higher transaction cost than Visa or Mastercard. That is true for the most part however, block chain technology is such a new technology that it would be unfair to judge it this quick. Mastercard or Visa did not launch with the ability of processing millions of transactions. Technology advances with time and block chain is just quite new to judge at the moment. Despite the critics, cryptocurrency transactions have been steadily growing up!
Some large companies accepting digital currency payments. If it wasn't profitable or far from reality to become a day to day currency, these big companies would not be accepting cryptocurrency.
Current Issues
There are 3 main arguments that holds cryptocurrency back.
1- Volatile Price: In order to become a day to day global currency, the price has to be stable. If a merchant sells 100$ worth of item and gets let's say 0.01 BTC for that. He expects when he goes and spends that BTC it would have 100$ worth of purchasing power. However, due to being in such an early stage, cryptocurrencies are extremely volatile. I personally believe that just like any other market crypto market will mature enough to have a stable price.
2- Slow Transaction time: This argument is mainly against bitcoin. There are some currencies out there that has instant transaction ability at no cost such as Nano. With the implementation of SegWit and possible 3rd layer solutions will be able to solve that problem.
3- High Transaction Fees: Transaction fees was never a problem in crypto world up until 2017. Bitcoin has experienced an unprecedented levels of transaction. Therefore, the cost of transacting BTC has spiked up. However, when moving a large amount of money, Bitcoin still has lower fees than banks. Banks take a % cut from your transactions while Bitcoin charges the same Satoshi decimal across the MEM pool.
How to fix the issues and what the future might look like in terms of crypto adoption in retail market
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Nice article full of useful informations and reasonable points.
I hope the current problems will get solved soon and we can pay with any crypto everywhere..
But until then we would get an official tax on cryptos and their changes..
We will see. Cryptos are super young and will change the world definitely. Even if it changes some niches and branches of economy.
Yes crypto is just so new. It is going to definitely disrupt the economy and traditional banking system. More regulations is better for mass adoption. So, I would be happy to pay tax on it :)
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That's a wise attitude :) I think you have changed my mind a bit with this ^^
Peace
Hey I am glad if I could! I have been a believer since 2011. Its just amazing to watch it come along :) Have a great one mate!
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I believe that eventually these problems will be solved. We have already seen some potential solutions in the form of lightning network and solutions proposed by Vitalik. Hopefully we see these ideas come to fruition.
We are just at the beginning. Tech will grow and the problems will be solved.
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@cryptoemir
A very informative and great blog. but sir some people question that bitcoin does not exist in physical shape. kindly how can I deal that person who question me???
Bitcoin does not exist in physical shape it will never be. Bitcoin exists of bunch of codes. You transact that code and that provides you a value. Just tell them that’s why you can send and receive crypto from anyone from anywhere in the world.
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I think we should not to worry about cryptocurrency . It just takes patience.
Crypto and blockchain is here to stay. Whether someone like it or not. The best choice is to join as soon as possible.
Yes absolutely, cryptocurrency is here to stay. It is going to get more and more adoption and governments will start accepting and ultimately start using it
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