The paradox of Bitcoin adoption - page 3.

Fortify

legendary

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Quote from: hatshepsut93 on November 27, 2021, 11:04:10 AM

Merchants don't adopt Bitcoin because their clients don't use it. Clients don't adopt it because merchants don't support it, and people want to have a payment method that can be used anywhere they go. How can this vicious circle be broken? Who will make the first move?

And by adopt I mean adopt for payments, not hodl it as an investment.

That's not really the paradox behind Bitcoin and doesn't get to the root cause of the problem. The real paradox is - as Bitcoin is adopted by more people, the transaction fees goes up and the network takes longer to process the increased levels of transactions while also burning a lot more electricity than comparative payment networks. If Bitcoin was much cheaper and as instantaneous as existing card networks, this wouldn't even be a discussion - people would have naturally moved over and Merchant adoption would be much more widespread, however the claimed benefits are simply not there. I find that Bitcoin is very good for one thing - moving reasonably large amounts across borders, it simply is not fit in the current form to handle the degree of small scale transactions that take place each day.

BlackHatCoiner

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Farewell, Leo

The answer to this paradox lies on this sentence:

Quote from: hatshepsut93 on November 27, 2021, 11:04:10 AM

And by adopt I mean adopt for payments, not hodl it as an investment.

The reason this paradox exists is because bitcoin is seen more as a long-term investment rather than a currency. It favors you to keep it instead of spending it and that's true as for speculators as for its deflationary nature.

Only if you put the advantages of it above this fact, you'll use it as a currency. So, in order to break this paradox, the people have to respect privacy, sovereignty and censorship resistance more than their capital appreciation. Tough thing to do.

DaveF

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Crypto Swap Exchange

I posted something about this a while ago. It's getting better, and with places like bitrefill other gift card providers & all the exchanges offering credit cards it will get better still. Just slowly.
Big merchants can get reports about where their gift cards are purchased. So as they see more and more coming from places like bitrefill they might take a look and go hmmmm this could work. With PayPal now slowly letting merchants accept BTC / crypto how long till some do it on their own.

Credit cards are a bit different, the merchants might not know but the credit card processors know who controls the cards. How long till they go out and see that the BitPay / Coinbase / etc cards are being used more and decide to process crypto on their own offering it to more merchnats.

It's just inertia. It takes time to get it moving.

-Dave

Ararbermas

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Quote from: hatshepsut93 on November 27, 2021, 11:04:10 AM

Merchants don't adopt Bitcoin because their clients don't use it. Clients don't adopt it because merchants don't support it, and people want to have a payment method that can be used anywhere they go. How can this vicious circle be broken? Who will make the first move?

And by adopt I mean adopt for payments, not hodl it as an investment.

i think it depends on how they will introduce their new payment method wherien in order to convince clients or whatever it's to use the same or let say to adopt what's the most useful and easiest ways when it comes paying bills and etc . Because if you don't know how to advertise it of course no one will gonna believe it or use it.. Infact the advantage of crypto is one of the key why the adoption is increasing.. So it's up you how to prove it.

maju69

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This is only an alternative to financial screening and to make dollar farms grow, the real adoption of money is not expected to be like this. It's like what's happening now is just doing a lot of rounds from Dollar to Bitcoin then back to Dollar. Makes it seem as if the adoption is done but in fact it is not. The value-keeping system was taken for granted and turned back into splattered banknotes that added to the insane inflation value. Where is Bitcoin adoption really going?

titular

sr. member

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"Stop using proprietary software."

I think you could posit that the circle is already being broken. Merchants all over are slowly starting to accept bitcoin payments. Just like consumers around the world are slowly starting to hold bitcoin. I think that it is just a matter of time (maybe a long time) until we see it being used for everyday purchases en masse.

I think the bigger concern is how regulatory bodies will enforce using their CBDC rather than allowing the public to choose what currency they purchase goods/services with.

hatshepsut93

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Merchants don't adopt Bitcoin because their clients don't use it. Clients don't adopt it because merchants don't support it, and people want to have a payment method that can be used anywhere they go. How can this vicious circle be broken? Who will make the first move?

And by adopt I mean adopt for payments, not hodl it as an investment.

Topic: The paradox of Bitcoin adoption - page 3. (Read 435 times)