Can Cryptocurrency Debit Cards Increase Day-to-Day Usage of Digital Coins?

With less than a quarter of Americans using cash in their day-to-day purchases, it’s more evidence that society is becoming an increasingly cashless environment.

On the other hand, cryptocurrencies are growing in popularity. However, most users only hold crypto to save and invest.

So with digital coins like Bitcoin, Ether and Litecoin becoming increasingly popular, why aren’t we seeing more widespread adoption?

Barriers
A majority of shoppers don’t see cryptocurrencies as a valid payment option, especially when it comes to physical purchases. To many, it’s too foreign a concept.

We grow up being taught the value of money and how to manage it. We are confident in its deemed value by being able to easily turn it into a tangible piece of paper or coin. When we want to exchange it for a product or service, there are no questions asked.

To take that mindset and change it, to trust and fully adopt a completely digital coin, can take some time.

Another big hurdle is getting merchants to accept digital currencies. It doesn’t help if people are willing to use cryptocurrencies in everyday payments but retailers won’t, or can’t, accept it.

The road to widespread adoption is a two-way street: payment and acceptance.

Big brands like Amazon, Microsoft and Apple are helping the cause by accepting and facilitating Bitcoin payments, but this is mostly for online transactions.

For physical in-store payments, merchants need the right infrastructure. This can be costly and time-consuming to implement. Not many businesses will risk this for a payment method that’s not seen mainstream adoption yet.

Debit cards encourage widespread adoption?
Cryptocurrency debit cards could bridge the gap between users feeling comfortable enough to use digital coins in their everyday lives, and merchants being able to accept them with existing infrastructure.

Most of us are happy to use a card to shop, this would not necessarily change if the card was connected to a Bitcoin account. It’s the payment method, not the underlying currency, which makes us feel at ease.

Both Visa and MasterCard have filed patents for transaction systems that use Blockchain technology, and have been experimenting with these types of payments for some time now.

The fact that established payment companies are getting on board means that existing infrastructure can be used without requiring additional work on the merchant’s end. The customer can therefore pay in a chosen cryptocurrency, while the merchant still receives payment in a fiat currency like Euro.

Opponents will often cite volatility as the number one reason for not seeing widespread adoption. It is true, cryptocurrencies can fluctuate wildly, but this is no different than what is happening to the price of fiat currencies.

Just look at what has happened to one of the world’s strongest currencies, the pound, in the last year as a result of changes in the political environment. Cryptocurrencies like Bitcoin and Ether are still young. It’s only a matter of time for them to settle into the market and for prices to stabilize.

Users are comfortable using their debit cards through current payment channels, and merchants have the right infrastructure to accept such payments. If existing payment gateways can continue to develop and facilitate crypto transactions, we will see a much wider adoption of cryptocurrencies in day-to-day life.

There are currently more than 30 crypto debit cards available from different providers.

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SEP 05, 2017
By Darryn Pollock
What is Bitcoin, “Bubble Territory” or “New Gold”?

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What is Bitcoin, “Bubble Territory” or “New Gold”? FOOD FOR THOUGHT
Jean Pierre Verster, who is well known for predicting the African Bank’s collapse, and is a portfolio manager at Fairtree Capital in South Africa, has come out in support of many who believe the latest rise in Bitcoin price is an indication of a bubble.

The portfolio manager has said that Bitcoin is in bubble territory and that he will not be investing in it.

The false truth
In differentiating the value of Bitcoin compared to its founding technology, Vester has said the digital currency is a ‘false truth while the Blockchain technology on which it is built is a ‘true truth.’

Verster is one in a long line of investors that have said they will not be investing in digital currencies, for a raft of different reasons. But it is clear that the portfolio manager still sees the value in Blockchain technology, but adds that Bitcoin is not a wise investment right now.

“The new gold”
Another portfolio manager, but this time at Ashburton Investments, Wayne McCurrie has said that he believes simply that Bitcoin is a digital version of gold.

It is a common sentiment about the two commodities that are seen as stores of wealth, but also as a functioning, tradable commodities.

Gold and Bitcoin are similar because they are independent currencies which no government can control, which you can carry around and get value for in any territory, he said.

McCurrie, however, adds that gold’s establishment as a valuable commodity has been recognized for over 5,000 years, whereas Bitcoin has only been in existence for a couple of years at best.

McCurrie’s prediction was that if Bitcoin was to make it big, and become a true success, it would have to become legislated.

“Governments will never tolerate a separate monetary system outside of the formal banking system, so it will almost become illegal if it truly becomes big,” he said.

ICO clampdown
Digital currencies, especially at the heights of Bitcoin, have lived fairly unhindered by government regulation. However, new ICO’s are suffering vicious attacks by governments, notably in China.
https://cointelegraph.com/news/can-cryptocurrency-debit-cards-increase-day-to-day-usage-of-digital-coins
The clampdown on ICOs is very different to the legislation that McCurrie is calling for, however, it may certainly also be aiding Bitcoin to gain legitimacy in a market that is being flooded by more and more digital currencies.