Why aren't cryptocurrencies successful as a medium of payment - page 16.

jatoman

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Quote from: Gaggy185 on June 28, 2018, 07:09:59 PM

At first you should know that cryptocurrency is not legalized in any country yet so it's the main reason why cryptocurrency can't be used as a payment method. If there is any company/shop/store/restaurant accept cryptocurrency for payment so it'll be kind of tax evade. Beside cryptocurrency has banned in some countries so cryptocurrency can't be a global payment method at the moment Grin

It's legal in the United States of America to name just one country.

Very few countries have banned all cryptocurrencies for payment.

I believe so few countries have banned crypto payments mostly because it's not used widely (thus my creating this thread!). It's not enough of a threat to worry about.

Now, I agree with you that, when crypto payments experience greater adoption, governments may ban certain cryptocurrencies for the reason you highlight... tax evasion. This is one of a series of regulations governments are concerned crypt payments evade.

That is why I think before a cryptocurrency will see widespread use is it needs to be "regulator friendly". I'm not aware any cryptocurrency that is "regulator friendly" because all cryptocurrencies hide the identity of the buyer & seller along with detail about what was purchased, where it was purchased, what, if any, taxes were paid, and so forth.

goldcoinminer

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Quote from: eliek18 on June 28, 2018, 07:17:22 PM

the first thing that becomes a problem is the public understanding of crypto is very little and there are still many misunderstandings about crypto. the government is also not fully supportive and the banking or other financial companies are also very opposed to crypto and they think that crypto could harm and take over their business.

Yes.I believe why cryptocurrencies are not yet successfull as a medium of payments its because people lack the proper education and awareness of crypto potentials and benefits.And the fact that a lot of negative news are against cryptos,it will add more confusion and even fear to the people if they use it.Lastly,cryptos are not yet supported by the government just like in my own country.

eliek18

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the first thing that becomes a problem is the public understanding of crypto is very little and there are still many misunderstandings about crypto. the government is also not fully supportive and the banking or other financial companies are also very opposed to crypto and they think that crypto could harm and take over their business.

marks1976

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Quote from: optimusprimalh on June 28, 2018, 02:58:54 PM

I think it's only the matter of time. Ordinary shops don't have the equipment and often they even still don't care, because it'll be expensive to do so and not so many people would want to pay with cryptocurrency.

Actually accepting cryptocurrency by using payment gateway specialised for this barely take any amount from your wallet, instead, you will have a wider users coverage for free.
But what makes people not accepting bitcoin yet is that they are afraid of it mainly because they are uneducated about cryptocurrency and people don't know how to implement it to their business.

Gaggy185

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Adoption Blockchain e-Commerce to World

At first you should know that cryptocurrency is not legalized in any country yet so it's the main reason why cryptocurrency can't be used as a payment method. If there is any company/shop/store/restaurant accept cryptocurrency for payment so it'll be kind of tax evade. Beside cryptocurrency has banned in some countries so cryptocurrency can't be a global payment method at the moment Grin

jatoman

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Quote from: Ceyebrity on June 28, 2018, 04:30:09 PM

Cryptocurrency is volatile. The price is not stable yet..imagine someone buys a good worth $1000 from your site and you wake up to discover it has dropped to $900

No doubt that price volatility is an obstacle.

Cryptocurrency exchange rates presently are driven primarily by speculation. The result is the sometime large change in price that we often call "high volatility".

Currency exchange rates are volatile. Cryptocurrency is no exception.

As speculation is driven out of the cryptocurrency market, cryptocurrency exchange rates will mimic fiat currency exchange rates.

Ceyebrity

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Cryptocurrency is volatile. The price is not stable yet..imagine someone buys a good worth $1000 from your site and you wake up to discover it has dropped to $900

txfidk

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the most important reason is the large fluctuations in the price in a short time

jatoman

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Quote from: lorylore on June 18, 2018, 10:55:26 PM

As of right now, cryptocurrencies are still new to a lot of people, even a lot of people in my country also have trouble going cashless payment, so it gonna take quite a while for people to get used to fully digital/cashless.

For certain there is a lot of work necessary to inform people about cryptocurrency as a medium of payment. While virtually everyone I ask, "have you heard of bitcoin?" answers yes, virtually none of these people when I ask my follow up question, "Do you know what cryptocurrency is?" answer yes (so far, only 1 person knows and he is a computer scientist!).

I believe it will take a campaign similar in scope as what American Express and Bank of America did in the 1960s to educate the public about credit card payments. This took over a decade before the public used cards for a significant percentage of their payments. In fact, not until the invention of the debit card did cards surpass cheques (checks) as a medium of payment.

jak3

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I don't know about the current market as I think Crypto Currency is the perfect tool for any business out there, It provides all the protection and security everyone requires without losing a lot of money on charges/taxes and slow transactions. Crypto Currencies are now quite young and they will take over everything in some years until then take as much as advantage you can.

optimusprimalh

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The Intelligent Retail Currency

I think it's only the matter of time. Ordinary shops don't have the equipment and often they even still don't care, because it'll be expensive to do so and not so many people would want to pay with cryptocurrency.

Aleksandr_ov

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the market is young and after 10 years you will not know the current system will all be in drohumu

hoanggiangg000

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Cryptocurrency has been very successful in it use as a method of payment. Waves, monero and few major alternative currency and bitcoins are all being used on daily basis for transferring money across the globe.

jatoman

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Quote from: qwertyup23 on June 27, 2018, 07:45:10 PM

There are various reasons on why cryptocurrencies are not circulating in the market as the main medium of exchange, such as: first, it has a highly-volatile price that can serve as a double-edged sword in both the consumer and the producer, its limited supply in the market can go inflationary on the year 2140 (since that year will be the projected year that all bitcoins will be mined out), other countries cannot adapt a technology that would support electronic payment as they are still underdeveloped and developing, and the government views bitcoin as a foreign entity that is a threat to the society.

No question that price volatility creates problems for sellers (retailers, merchants, and suppliers) because it takes several days to convert cryptocurrencies into fiat and during that time the value of their payment might go down significantly. Similar problem for buyers (consumers) because it takes several days to convert fiat currency into cryptocurrency. Once again, during that time the value of their cryptocurrency might go down significantly. Of course, both buyers and sellers benefit it value of the cryptocurrency going up.

A tactic that would address this, and is part of what will make the user experience a welcome one for buyers and sellers, is nearly instant conversion to and from fiat currency. If moments before I go to the store I can purchase cryptocurrency with fiat currency by pushing a button on my iPhone app, then shop and make purchases in cryptocurrency using my iPhone app and its QR code, and then the retailer converts the cryptocurrency into fiat currency moments after the purchase, the duration is short enough that price volatility will have virtually no impact on either the buyer or seller.

Teebass001

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It's not going to happen any time soon. Crypto is still in it infancy. A lot of obstacles has to be overcome before will can have a widespread adoption of crypto. These includes but not limited to: transaction time, cost, security and a host of other factors. I still believe in cryptocurrencies as the future of payment. But it's not gonna happen in the nearest future. Fiat still holds sway. In the meantime enjoy the speculative power of crypto. Cheers

BlackWidow

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Because here are big powers which don't want you, me and all people to take control in our hands and so they keep making some king of FUD all the time

qwertyup23

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Quote from: jatoman on June 13, 2018, 12:15:25 PM

The global economy is nearly 80 trillion USD per year. Payments using any type of cryptocurrency as a medium of payment is a tiny fraction of this total.

What are some of the reasons preventing cryptocurrency from being more successful as a medium of payment?

There are various reasons on why cryptocurrencies are not circulating in the market as the main medium of exchange, such as: first, it has a highly-volatile price that can serve as a double-edged sword in both the consumer and the producer, its limited supply in the market can go inflationary on the year 2140 (since that year will be the projected year that all bitcoins will be mined out), other countries cannot adapt a technology that would support electronic payment as they are still underdeveloped and developing, and the government views bitcoin as a foreign entity that is a threat to the society.

jatoman

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Quote from: omfg.xekcep on June 27, 2018, 12:50:28 PM

There is SWIFT for this purposes and while nobody is going to change anything in this field because it is tested and secured. I think that crypto technologies are too crude to be the core system of interbank payments. Just recollect how often we heard about hackings and vulneriabilities in crypto technologies.

Yes, I'm quite familiar with SWIFT.

It's slow, complicated, and expensive.

For cross-border payments, SWIFT (Society for Worldwide Interbank Financial Telecommunications) often takes days to settle, requires coordination between up to four banks (Payer's Bank, Payer's Bank's Correspondent Bank, Payee's Bank's Correspondent Bank, and Payee's Bank), and has fees in the tens of USD per payment.

In contrast, crypto payments can move any value of money from anywhere to anywhere in moments for essentially no cost. Further, anyone can use crypto payments because it doesn't require a bank account.

While SWIFT is trying to address its shortcomings, it's a 50 year-old architecture that is ill-suited to compete with crypto payments.

Here is a short read about comparing ripple with recent improvements from SWIFT: https://www.gtreview.com/news/fintech/ripple-dismisses-marginal-improvement-of-swift-gpi/

There is plenty of opportunity for innovation with crypto payments. Not so much for SWIFT.

Nice FUD posting though. Hat's off to you!

Semen89

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This market is successful in order to earn money, but as a form of payment, they do not yet develop as quickly as we would like to wait and see.

max6575

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Vave.com

with customs of decentralized as the transparency with use of returns as transmission within network of blockchain server, the token to deliver as exchanging substitution on use with trade on merchantile between partisan of business with crypto currency.

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