Steemit Crypto Academy Contest|| Season2 Week2 ~ Cryptocurrency Adoption by @merci26
Hello friends,
This is the second week of the steemit engagement challenge. Here in cryptoacademy, we are expected to discuss about adoption of cryptocurrency in the financial market as well as its benefits. Read along with me as I try to express my thoughts in this post.
Discuss the adoption of cryptocurrency in the financial market and how businesses can be boosted through cryptocurrency transactions.
In earlier times, users of conventional currency, wanted a unique currency which was free from middlemen as well as secure, and was far better than the regular conventional currency that was used as at that time. This urge for a unique currency made some individuals to explore, and it Lead to the creation of Bitcoin in the year 2009. Since Bitcoin came into existence, other coins have also emerged as we are in the 22nd century where technology keeps evolving and man who is insatiable keeps looking for the best, that will suit their life style and match the evolving world.
Today, we find out that in some of the countries found in the world, the use of cryptocurrency is under ban, while some have placed strict rules on the use of cryptocurrency. Adoption simply means legalizing cryptocurrency as a means of payment, just the way the use of a country’s conventional currency is legal.
Cryptocurrency has wonderful features that makes them fit to be adopted into the financial market. It is digital, which means one do not need to look for local banks or travel far distances before using cryptocurrency, as we can have it on our mobile devices by having a crypto wallet. It has helped to eliminate third party as two individuals can actually trade cryptocurrency by using the P2P system without even knowing who they are transacting with. Cryptocurrency are created through the use of algorithm encryption and this makes it very secure and difficult for a counterfeit to exist. It has made transactions swift as well as very easy among users.
The adoption of cryptocurrency is a gradual process, as there is not really a competition at the moment between the use of conventional currency and cryptocurrency. Once the major world countries adopt the use of cryptocurrency, all other countries will follow suit. Some individuals, as well as organizations has already started adopting cryptocurrency as a means of payment, Microsoft has adopted the use of crypto as a means of payment to top up Microsoft account as well as pay for games, applications and other digital contents. Also Burger King and Pizza Hut stores in Venezuela has adopted the use of cryptocurrency as means of payment., they are not alone in this as KFC located in Canada has also followed suit.
Cryptocurrency has come to stay, and gradually it will invade all sectors of the financial market, and displace the use of conventional currency.
• The use of cryptocurrency is very easy and fast, this will help businesses carry out easy and fast transactions unlike conventional currency where most times confirmation of transactions takes forever to appear.
• The assets of a business owner is in their control, as they do not need government officials or middlemen to perform transactions.
• The use of cryptocurrency is quite cheap, as there is very little charges that are needed for transactions to be carried out.
• The use of cryptocurrency is very secure and readily available for everyone. There is no restrictions as to a minimum or maximum amount an individual is expected to have in their wallet or use for transactions.
What is your opinion on cryptocurrency being accepted globally for our day-to-day transactions.
This will be a good move. This will definitely help to create balance among the various currencies of the world. Today, you will agree with me that the value of a currency varies among countries, and this has really caused stress and hardship when making transactions.
The adoption of cryptocurrency globally, will also create unity among individuals as anyone at any part of the world will be able to carry out transactions that are safe and secure.
The worry of trying to change or acquire the currency of a particular country will be eliminated totally as I will be able to use either Bitcoin, or Ethereum in any country I travel to, knowing fully well that it will be accepted. If the adoption of cryptocurrency globally for day to day transactions is made possible, then half of the worlds problem is already on the way to be solved.
Do you think the high volatile nature of the crypto market is a concern to business owners? Discuss.
Cryptocurrency is highly Volatile, and as such it is not for people who have faint heart. Currently the market is in blood pool, as there is currently a serious downtrend in the market. Cryptocurrency is one that everyone, not just traders and investors are scared of, as this moment you can be happy and full of joy as a result of high profit one has accumulated, and the next moment you are already crying as you are in total loss of funds. If there is no possible ways to regulate the volatility of cryptocurrency then I think it will be very difficult for the world to adopt it, as it will not help boost business. Cryptocurrency is one that no one can give a 100% prediction as to how the market will turn out, no matter the number of indicator that is used by an individual, as such everyone is left with the worry about its volatility. Business owners, look out for how to boost their business so as to maximize profit, which the use of cryptocurrency can help achieve, but are they really prepared for the volatility nature of cryptocurrency? The answer is No, and this is mainly one of the reasons why some are still in doubt, and yet to adopt it into their businesses.
What other factors are currently limiting the adoption of cryptocurrency and how can this be solved?
some other factors that are hindering its adoption includes;
• One of the major problem is Ignorance by some individuals and organizations. Some individuals who you tell about blockchain technology do not know anything about it, as well as its benefits. Some Individuals are victims of fraud as well as scam in the past, and this has made them see Every other thing including the blockchain technology as a scam. The solution to this issue is the creation of more awareness among individuals. There should be a thorough explanation as to how blockchain technology works, as well as its benefits.
• Cryptocurrency is decentralized, and makes it very difficult for true identities of individuals to be known during transactions and as such some individuals have used it for criminal activities especially in acquiring dangerous ammunition as well as weapons. Some kidnappers have also sent their wallet address to relations of their victims as a means for ransom. The solution to this problem, is implementing strict measures to totally eliminate the criminal connections associated with cryptocurrency.
• Most blockchain networks makes use of the proof of work system, and this makes it really slow, and requires high energy consumption for transactions to be validated. To solve this problem, other consensus methods to require very little amount of energy to validate transactions needs to be adopted.
• It is true that transactions using cryptocurrency are said to be fast, but that is when there are few users. The issue of low scalability is one that has affected transactions with large number of users. The only solution is adopting a system that can accommodate large number of users and also process transactions swiftly.
• Cryptocurrency is one that is very volatile as there can be a boom in profit within a short period, and the next moment, there will be great loss. The solution is assigning a body with the responsibility of regulating the volatility of cryptocurrency.
Discuss the Pros and Cons of cryptocurrency adoption by business owners.
• Cryptocurrency is decentralized and as such middlemen are totally eliminated during transactions.
• The charges associated with cryptocurrency are very little.
• There is no restriction as to the number of transactions that can be carried out.
• It is very easy, fast and convenient to use.
• Transactions sent to a wrong address cannot be retrieved.
• Once keys to the wallet is misplaced, funds are totally lost.
• Unavailability of Electronic devices, will make it totally impossible to use cryptocurrency.
• It is very volatile and can result to huge loss of funds.
Conclusion
Adoption of cryptocurrency is one that everyone needs to look out for, since the world is evolving as well as technology too. If the issues are associated with cryptocurrency is totally eliminated, then the world will have every reason to use cryptocurrency as a replacement to conventional currency.
You are right and I agree with you that cryptocurrency is very easy to use and very fast to transact. So if this cryptocurrency is used for any business purpose, then that business will benefit a lot more. Because the transaction fee for transacting here is very low and can be done very quickly
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Visiting your post, I saw a lot and I liked it very much. Best of luck to you.
Truly cryptocurrency transaction is fast, it can be sent to any part of the world and this make it good for a business.
However, cryptocurrency volatility makes it risky for a business. Thank you for sharing.
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Comments/Recommendation
You have made your explanations clear. But i think you could have explored more to provide in-depth information. Thank you for participating in this contest.
Total|7.5/10
Your post is very nice and full of facts but let me add this:
Two of the major factors limiting the global and mass adoption of cryptocurrency are volatility and the fear of losing one's capital. Until the inventors tackle these problems, way not see the adoption we wait to see.
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You are welcome.