Topic: Why aren't cryptocurrencies successful as a medium of payment - page 5. (Read 1909 times)
The first thing that became a problem was that there was very little public understanding about crypto and there were still many misconceptions about crypto. At first you must know that cryptocurrency is not legalized in any country, so the main reason why cryptocurrency cannot be used as a payment method. also the price of cryptocurrency is not stable.
The government.
I wouldn't blame the government for this. Businesses are perfectly capable of accepting crypto if they so desired and payment processors like bitpay do exist. What I would argue is that merchants are just not interested in doing it, or at least not most of them.There have been some governments who have banned crypto if i'm not mistaken, but it currently is not a systemic problem. In the US, there is a local restaurant that I know of that accepts bitcoin and the government has no problem with this. The truth is that its a pain in the ass for the business. They're used to cash and credit cards and those methods are fast and easy.
Also if bitcoin hasn't gained a foothold, do you really think altcoins are going to? I would argue that a good percentage of the world population doesn't even know ETH exists and they certainly don't know that coins like WAVES or LTC exist. Though I don't want it to be this way, the fact is that people are comfortable with banks and cash and plastic money. Those things are ubiquitous and crypto is not.
Now, gaining governments enthusiastic support because there is a cryptocurrency designed to make applying their regulations easier and more efficient would be quite helpful. I see this being the opportunity.
People don't care about what cryptocurrency is behind a crypto payment. What they care is that there is some advantage to them for using crypto payments, that it is easy to use, and that enough consumers and merchants use and accept it.
That means there must be innovation on the mobile payment applications and POS systems to make these things happen.
Hey jatoman,
I think the largest reason crypto is not yet successful as a medium of payment is because it is a complicated technology and it is marketed like one. Furthermore, buying cryptocurrency and using it is much more difficult than fiat currencies. As crypto gets more exposure and better understanding, its use will increase.
Best,
CafeCoin
https://cafe-coin.com/
Yes, I agree there needs to be innovation to make it easier for consumers and merchants to use and accept crypto payments. It needs to as simple as paying with a credit/debit card.I think the largest reason crypto is not yet successful as a medium of payment is because it is a complicated technology and it is marketed like one. Furthermore, buying cryptocurrency and using it is much more difficult than fiat currencies. As crypto gets more exposure and better understanding, its use will increase.
Best,
CafeCoin
https://cafe-coin.com/
And, your point about exposure is right on. There needs to be promotion of how crypto payments work, why people should trust these, and most importantly, what about crypto payments is better than traditional payments such as cash or card.
The government.
I wouldn't blame the government for this. Businesses are perfectly capable of accepting crypto if they so desired and payment processors like bitpay do exist. What I would argue is that merchants are just not interested in doing it, or at least not most of them.There have been some governments who have banned crypto if i'm not mistaken, but it currently is not a systemic problem. In the US, there is a local restaurant that I know of that accepts bitcoin and the government has no problem with this. The truth is that its a pain in the ass for the business. They're used to cash and credit cards and those methods are fast and easy.
Also if bitcoin hasn't gained a foothold, do you really think altcoins are going to? I would argue that a good percentage of the world population doesn't even know ETH exists and they certainly don't know that coins like WAVES or LTC exist. Though I don't want it to be this way, the fact is that people are comfortable with banks and cash and plastic money. Those things are ubiquitous and crypto is not.
I believe crypto will overcome the current problems and become more user friendly in the future.
This will certainly take a while, but the importance of crypto as a means of payment will certainly increase.
This will certainly take a while, but the importance of crypto as a means of payment will certainly increase.
Hey jatoman,
I think the largest reason crypto is not yet successful as a medium of payment is because it is a complicated technology and it is marketed like one. Furthermore, buying cryptocurrency and using it is much more difficult than fiat currencies. As crypto gets more exposure and better understanding, its use will increase.
Best,
CafeCoin
https://cafe-coin.com/
I think the largest reason crypto is not yet successful as a medium of payment is because it is a complicated technology and it is marketed like one. Furthermore, buying cryptocurrency and using it is much more difficult than fiat currencies. As crypto gets more exposure and better understanding, its use will increase.
Best,
CafeCoin
https://cafe-coin.com/
be sent to the seller's account in form of USD not cryptocurrency anymore, guess that solve the problem.
Yes, ideas like this help address the price volatility problem.
Fixed payments will indeed overcome the problem of volatility but people need certain regulations, crypto does not have that.Yes, ideas like this help address the price volatility problem.
The two main reasons are the unregulated status of cryptocurrency at the state level or at least one large state. For example, PayPal may not be recognized in any country, but its recognition in the United States allows sellers to accept payments to PayPal.
In the second reason of course this is a small prevalence and as a consequence of this high volatility relative to the US dollar.
In the second reason of course this is a small prevalence and as a consequence of this high volatility relative to the US dollar.
This could be as a result of the vulnerability in cryptocurrency which I don't see as an excuse. The vulnerability is due to the lack of policies put in place to check and balance the system.
I think there are many factors, and the most important thing is that the volatility of the cryptocurrency price is unstable and the legal currency is relatively stable. The government's support and promotion is also one of the most important factors.
be sent to the seller's account in form of USD not cryptocurrency anymore, guess that solve the problem.
Yes, ideas like this help address the price volatility problem.
Fixed payments will indeed overcome the problem of volatility but people need certain regulations, crypto does not have that. Yes, ideas like this help address the price volatility problem.
I don't think it has worked, it doesn't mean it doesn't work. we know that market movements are very fast affecting the value of the crypto aser. I think this makes crypto unable to be used as a payment instrument. but there are some that have implemented it, maybe new bitcoin and ethereum are accepted.
There's some payment gateway out there that gives the fixed rate when the client is about to purchase with bitcoin therefore preventing fluctuation that could happen when the transaction was made.the money then will be sent to the seller's account in form of USD not cryptocurrency anymore, guess that solve the problem.
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?
What are some of the reasons preventing cryptocurrency from being more successful as a medium of payment?
Ruby Exchange is planning to develop an advanced mobile trading platform and launch its Mastercard/NFC service.
Hopefully, in few years, you can use RBY tokens just like cash!
I don't think it has worked, it doesn't mean it doesn't work. we know that market movements are very fast affecting the value of the crypto aser. I think this makes crypto unable to be used as a payment instrument. but there are some that have implemented it, maybe new bitcoin and ethereum are accepted.
There's some payment gateway out there that gives the fixed rate when the client is about to purchase with bitcoin therefore preventing fluctuation that could happen when the transaction was made.the money then will be sent to the seller's account in form of USD not cryptocurrency anymore, guess that solve the problem.
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?
Probably, the problem is the market volatility of cryptocurrencies. Fiat as a medium is having a stable market value which us an important aspect in order to promote equality. So since the market value of most cryptos are lacking stability, making it a medium of payment won't be as effective as the functionality of usd and other regular currencies.What are some of the reasons preventing cryptocurrency from being more successful as a medium of payment?
All fiat currencies are volatile in that their values change constantly. Very few fiat currencies experience extreme price volatility.
So, for a cryptocurrency to be widely used it must avoid having extreme price volatility.
Consider an application that works like this.
1. There is a smartphone application that is a closed-loop payment system.
2. Like all closed-loop payment systems, consumers upload fiat currency from their bank accounts or credit cards to this smartphone application.
3. The smartphone application holds this fiat currency until consumers are ready to buy something from a merchant that accepts a specified cryptocurrency.
4. When it is time to make a purchase the smartphone application converts the fiat currency into the cryptocurrency.
5. At the point of sale (POS), consumers use the smartphone application to display QR Code (or, barcode) that the merchants' POS systems can read.
6. The POS system registers the sale and accepts a crypto payment from the consumers.
7. Merchants now have cryptocurrency they can spend.
8. Or, merchants can convert this cryptocurrency into fiat currency
The amount of time between #4 and #8 can be a few seconds. The result is neither consumers nor merchants are exposed to price volatility.
I don't think it has worked, it doesn't mean it doesn't work. we know that market movements are very fast affecting the value of the crypto aser. I think this makes crypto unable to be used as a payment instrument. but there are some that have implemented it, maybe new bitcoin and ethereum are accepted.
They are fluctuational by nature and I think that makes business kind of nervous, and with a reason, they may sell a product and by the next day the payment could be worth nothing; I think in the future cryptocurrencies will definitely play a big role in mainstream payments, once it get stabilized.
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?
Probably, the problem is the market volatility of cryptocurrencies. Fiat as a medium is having a stable market value which us an important aspect in order to promote equality. So since the market value of most cryptos are lacking stability, making it a medium of payment won't be as effective as the functionality of usd and other regular currencies.What are some of the reasons preventing cryptocurrency from being more successful as a medium of payment?
All fiat currencies are volatile in that their values change constantly. Very few fiat currencies experience extreme price volatility.
So, for a cryptocurrency to be widely used it must avoid having extreme price volatility.
I strongly believe cryptocurrency will reach that land mark. We shouldn't forget that these technology's is in its infant stage. Cryptocurrency is coming out strong. Crypto is going mainstream
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?
Probably, the problem is the market volatility of cryptocurrencies. Fiat as a medium is having a stable market value which us an important aspect in order to promote equality. So since the market value of most cryptos are lacking stability, making it a medium of payment won't be as effective as the functionality of usd and other regular currencies.What are some of the reasons preventing cryptocurrency from being more successful as a medium of payment?
All fiat currencies are volatile in that their values change constantly. Very few fiat currencies experience extreme price volatility.
So, for a cryptocurrency to be widely used it must avoid having extreme price volatility.
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