Why aren't cryptocurrencies successful as a medium of payment - page 17.

gokusenpai0302

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Quote from: jatoman on June 13, 2018, 11:15:25 AM

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?

The reason behind it is simple, it is a new player in cryptocurrency world. New tokens or coins cannot cope up with bitcoin or other altcoins out there in terms of features, this will also depend on the development team on how they will handle the platform itself especially the implementation of its features. But for now, bitcoin is the widely used as medium of payment as well as other altcoin like Etherium or Litecoins.

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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.

jatoman

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Quote from: APICEMTECH on June 17, 2018, 03:02:39 PM

Because there are big powers who do not want you me and the people to take control in our hands and so they keep making some kind of fud all the time.

There is no doubt that cryptocurrency threatens huge organizations such as American Express, Visa International, and others in the global payment industry. I would expect such organizations to engage in a FUD (fear, uncertainty, and doubt) campaigns.

To counterbalance this, there needs to campaigns to alert consumers to cryptocurrency payments including their advantages. Crypto payments do have a huge advantage in messaging over traditional payments companies because of modern communications such as social media, blogs, and message boards such as bitcointalk.org allow messages to quickly and easily spread to consumers.

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Quote from: crazycatwoman03 on June 17, 2018, 05:28:14 PM

In addition, cryptos are not still as common as a fiat currency. People who doesn't give attention to modern technology haven't heard of and maybe those who have heard about it do not have any interest.

I agree.

Consumers (buyers) won't use it until they

are aware of it
understand how it works
trust it

To achieve this, there needs to be a lot invested in marketing crypto payments to consumers (and, retailers too!) as well as educational programs. I see a similar task as American Express and Bank of America, pioneers in card payments, did in the 1960s to get consumers and retailers aware of it.

gentsy brink

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I think cryptocurrency is not suitable as a medium of payment. because of the value of cryptocurrency that high causing crypto is misused by some people. besides, not everyone has known about the cryptocurrency world and of course, it will make cryptocurrency difficult to develop. it would be better if the cryptocurrency is used as an investment because I think it's more profitable.

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Quote from: goodluck0319 on June 23, 2018, 04:03:33 AM

the reason for this is simple - too high costs for the transfer and long confirmation of the transaction. alternatively, use third-party services as lightning network, but their implementation will take time

I do agree, last time I use crypto for buying all my needs it takes quite of time but about the fee I can say that around the same as what paypal required so it's quite fair but the time required for a confirmation just a pain in the ass.
Lightning network is an interesting option for this but as you said, it need complicated set up, also need to make merchant know what theyre doing so not really effective.

jatoman

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Quote from: auliahr on June 17, 2018, 10:51:37 AM

I believe crypto is a payment solution in the future, you try to imagine if we want to send money abroad in just a matter of seconds or minutes the money will quickly get to the recipient with a very low cost and without complicated requirements. Crypto is a technological breakthrough that is very suitable for use in people's lives or used en masse.

For certain, Instant Value Transfer is a primary benefit to consumers of cryptocurrency.

Also, its for everyone because it doesn't require either the buyer or seller to have a bank account.

Lastly, it's a breakthrough for private and public accounting because it provides evidence for a purchase.

So, cryptocurrency has a lot of benefits.

The question remains... with all these benefits why isn't is use more widespread?

jatoman

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Quote from: xaker74 on June 17, 2018, 10:26:16 AM

The reason is that they are not controlled by anyone, and as we know the government does not like it. From the government-controlled cryptocurrency makes no sense, and not controlled has cant received extensive distribution.

Some governments don't like the idea of cryptocurrency because they can't control the money supply, which is their "monetary policy". I suspect most governments don't care because they don't see cryptocurrency being a threat to their monetary policy because to date there has been very little use as a medium of payment.

On the other hand, if there was a cryptocurrency that was regulator friendly where it provides advantages to the government over their fiat currency, perhaps governments would allow, even encourage, the use of cryptocurrency.

Electric4

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It's the volatility.

Imagine if a country came out and said, "We're going to use this one crypto currency." The value of that crypto is going to go into the tens of billions of dollar marketcap. And the benefiters are going to be the holders. Then imagine if they sell out once the country starts using it. The dropped price will cripple them.

michael23

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The cryptocurrency market is a new phenomenon, and yet people do not know how to relate to cryptocurrencies. Many countries do not support cryptocurrencies.

b_oo

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It really all comes down to infrastructure. How can it become the norm is not many places accept it?

plontacia

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The main problem is the high volatility of the crypto currency, if this changes and the crypto currency becomes more stable then the situation will change

snaper14

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one of the major factors are the price of the coins, it is very volatile and people don`t have confidence to accept payments with them as today worth of a coin may be 1$ but tomorrow 80cents.

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I guess that's because transaction costs are still expensive, and prices are unpredictable, so people prefer to invest instead of using as a medium of payment

jdkly

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I think the biggest reason is that prices fluctuate a lot. Another reason is security, and a lot of technology needs to be developed

sircy

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Crypto is still a new field and certainly still arising out the pros and cons of the existing therein. so from that Crypto can not be used as a medium of payment. Although some countries have already implemented this in some places, overall there are still many who are still reviewing this crypto.

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Quote from: OuterTech on June 13, 2018, 06:53:13 PM

I think you are thinking pessimistic about the future of the cryptocurrency market. For the next 10 years, cryptos will become famous and become the global currency of the entire world. At that time, cryptocurrency will replace real money to become the most popular currency in the world.

Fame is not the problem of cryptocurrency any more. I believe it has gone viral to help acceptability but the use is still limited and people's confidence is declining. If bitcoin can't serve as payment why can't other. Crypto has some innovation in online shopping with payment medium but still struggle to thrive. I wish improvement comes in the nearest future

merle

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Yes right now, only small cryptocurrencies that can be used for the medium of payment in the real world. Not all parties or industries accept the many kinds of crypto and blockchain technology. But, crypto is always developing. It probably needs more time to introduce the benefits and simplicity of cryptocurrency to the world. It is good for some cryptos have been accepted. We hope that more cryptos are valuable for the medium of payment.

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Quote from: jatoman on June 13, 2018, 11:15:25 AM

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?

In my opinion, it would be very complicated a crypto would be a normal payment system in the future, at least of all crypto is available today.
But if all countries agree to use it, and crypto is created specifically for this purpose, it is another. But if indeed it will happen, it will likely take a long time.

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Quote from: enhu on June 15, 2018, 09:21:16 PM

It would take time for jnstitution to realize cryptocurrencies are better to use. The government are still opposing its use although there are countries already adopting it. The more countries that will be accepting bitcoin, the more will be opening themselves for it also. It will take time.

I agree that before cryptocurrencies will experience widespread use as a medium of payment that governments, and more specifically, their regulators allow, if not enthusiastically support, cryptocurrency as a medium of payment.

There needs to be innovation because I'm not aware of any blockchain and its associated cryptocurrency that is "regulator friendly".

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