Steemit Crypto Academy Contest / S2W2 – Cryptocurrency Adoption by @anyiglobal

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Good day everyone! Welcome to the steemit engagement challenge season 2 week 2. I believe the previous season ended successfully, and so will this season end successfully too. I'm glad to participate again in this special contest organized by the SCA community. This contest will also give every participants the opportunity to express their view on the future of Cryptocurrency.

I'm here to drop my own entry to the contest. However, before I proceed, I will like to list the topic we're to write on in this contest below:

• Discuss the adoption of cryptocurrency in the financial market and how businesses can be boosted through cryptocurrency transactions.

• What is your opinion on cryptocurrency being accepted globally for our day-to-day transactions.

• Do you think the high volatile nature of the crypto market is a concern to business owners? Discuss.

• What other factors are currently limiting the adoption of cryptocurrency and how can this be solved?

• Discuss the Pros and Cons of cryptocurrency adoption by business owners.

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1. Discuss the adoption of cryptocurrency in the financial market and how businesses can be boosted through cryptocurrency transactions.

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The first cryptocurrency (Bitcoin) whitepaper that describes how bitcoin was designed and implemented was published in October 31, 2008 by a pseudonymous person or group of persons called "Satoshi Nakamoto" following a financial recession. And since then, cryptocurrency has been paving it's way towards a legalized form of exchange in the financial market and other projects has been emerging under the foundational basis of Bitcoin blockchain design. The first cryptocurrency transaction occurred in January 3rd, 2009 when a man called Laszlo Hanyecz purchased two pizza's for 10,000 Bitcoins. And it was this event that led to the memorable pizza day.

In the financial market of recently, cryptocurrency market has not been regarded as a part of financial market due to some sentiments and pitfalls which are caused by the governmental regulations and poor adoption by business owners. Though some business owners but not all have regarded this financial asset and adopted it in their day-to-day transactions due to it's transparency, permission-less, decentralized, and some imperative features that powered the high-performance quality of the system.

Adoption in it's simpler sense means to take or make use of something voluntarily. Now cryptocurrency adoption simply means to legally make use of cryptocurrency as a financial asset for carrying out day-to-day transactions. It is good to adopt this cryptocurrency in the financial market because of it's ideal features that made it more reliable asset to trade on.

Some business owners like Paypal, Microsoft, Twitch, Starbucks, Etsy, AT&T, e.t.c. that has adopted this cryptocurrency sees a prospect in the viable project before adopting it in their day-to-day transactions. The use of cryptocurrency aid a fast and secure transaction. But before it can be fully adopted as a means of payment by all the business owners, governments has to play important roles out of their jurisdiction to make sure that the adoption follows a legal process, and now the governments, individuals can now put some of their net worth in cryptocurrency. And to me this adoption will help reduce the sharp decline in the price actions of cryptocurrencies if government and business should fully adopt it.

HOW BUSINESSES CAN BE BOOSTED THROUGH CRYPTOCURRENCY TRANSACTIONS
It's not lie that cryptocurrency transactions can boost businesses. The adoption can enhance the business activities and at the same time maximize profit for the business. Businesses can be boosted in the following ways if they adopt cryptocurrency transactions:

• Because cryptocurrencies facilitates borderless transactions, it allows businesses to easily transact with far distant customers who is not in the same country with them without going through any financial institution like bank which might have involved many processes to send and receive money from the two countries through the bank.

• Cryptocurrency being used by wider scope of people all over the world, can help businesses to maximize profit very fast if they accept cryptocurrency transactions because the use of crypto transactions will attract many cryptocurrency users to patronize their business and transact with them.

• Every cryptocurrency user has authority over their coins and will be more comfortable when using it to transact with business owners as they want because there's no intervention of any financial institution.

• Since cryptocurrency usage drives privacy, it's adoption in business will keep the personal details of the sender and the receiver private because they don't have to entrust their personal details to any third party. This will also increase and secure the reputation of the business.

• Since cryptocurrency enables a fast transaction due to it's blockchain concept, business transactions can be very fast in transmission thereby enhancing the reliability of the business owners and increasing the trust between the customer and the business owners. However, it will also enable the business owners to carryout more transactions in limited amount of time.

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2. What is your opinion on cryptocurrency being accepted globally for our day-to-day transactions.

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To me, if cryptocurrency can be accepted globally for our day-to-day transactions, users, now have to by-pass the need to send or receiver money through any financial institutions. Every transactions will now be carried-out digitally without any third party intervention especially banks. It will eliminate the financial boundaries of cross border payments. transactions across borders will be seamless and more efficient if day-to-day transactions of cryptocurrency is accepted globally.

The acceptance of the digital asset globally will reduce high inflation in the country because cryptocurrencies has limited supply and it is not regulated by any government. Countries with poor fiat currencies doesn't have to worry about inflation as the adoption of the cryptocurrency will evade any form of inflation in the country. It will also be used to jump over high taxes and capital control in the countries with such high tax charges.

If the digital currency is accepted as a means of transaction globally, people don't need to worry again about the issue of being hacked or scammed off their funds because the system is strongly secured by cryptographic security method. It will also shorten the need go to banks to perform some transactions that requires withdrawal of fund. The fear of entrusting your personal details to the banks will reduce if the cryptocurrency transactions is accepted globally.

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3. Do you think the high volatile nature of the crypto market is a concern to business owners? Discuss.

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As we all know that volatility means that there is a great uncertainty about the future price of an asset. Since cryptocurrency is volatile and we're uncertain about the future of the asset, it proves a great concern to the business owners. Following the previous charts of cryptocurrencies, we will see how volatile their prices are, i.e. they rise and fall within minutes leaving their traders and investors in great uncertainty about it's future price.

Currently, the cryptocurrency market as a whole is experiencing a great decline in their prices. And this is as a result of demand and supply, the makers and the market takers which creates instability on the price of a given asset. When the demand is high and the supply is low, the price increases, but when the supply is higher than the demand, the price decreases. These decline as well affects the business owners in one way or the other. Cryptocurrency serves as a store of value, and when it's value depreciates it faces crisis. The current downtrend of bitcoin in the cryptocurrency market is a great concern to business owners business lead other coins.

However, stable digital currencies like USDT, USDD, USDC, BUSD, e.t.c. can be used to avoid this volatile nature cryptocurrencies. Stable currencies hardly fluctuate because they are pegged to a domestic currency USD.

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4. What other factors are currently limiting the adoption of cryptocurrency and how can this be solved?

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i. Government Policy: Government of some countries like China have imposed some laws about the use of cryptocurrency especially the mining of bitcoin in their country. China is the second highest miner of bitcoins globally after U.S. The Chinese government prohibited financial institutions from any engagement in cryptocurrency transaction before they finally ban on September, 2021... their reason was that people use the digital currencies for fraud and money laundering in the country. Same policies was imposed on Nigerian banks to desist from any form of crypto-related transactions. Government policies are a great limiting factors in the cryptocurrency adoption globally.

The solution to this factor still lies in the hands of the said government. This is because the laws and regulations are enforced and implemented by them out of their jurisdiction. So before solving this factor, the government has to decide within themselves the acceptance of cryptocurrency in their own country.

ii. Environmental Issues: The Chinese as acclaimed before the banning of bitcoin mining in their country claimed that bitcoin mining has an adverse effect on the environment. This is because bitcoin mining requires a lot of computing power and at the same time consumes a lot of energy which increases the energy cost. This factor still delays the adoption of cryptocurrency globally.

An alternative to mining should also be found by the crypto inventors. The alternative should bring out a way of mining using software that consumes less energy, thereby reducing the cost of energy in a specific country.

iii. Security Concerns: Some time ago, back in the years in 2014, MT Gox was attacked and hacked, and about 850,000 Bitcoin of people's funds was stolen and this brought about a crash in the crypto market. Cryptocurrency exchanges has become a target of cyber attacks and hacks especially centralized exchanges. This is why it is advisable for people to start storing their funds in decentralized exchanges that is difficult of attacks and hacks. This considerable factor still hampers the adoption of cryptocurrency globally.

The solution to this is to save our cryptocurrencies in decentralized exchanges to enjoy maximum control of our funds and reduce the risk of losses.

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5. Discuss the Pros and Cons of cryptocurrency adoption by business owners.

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The adoption of cryptocurrency by business owners has some advantages and disadvantages.

Pros

• Low cost of transaction: The charge incurred in sending cryptocurrency from one person to another is low compared to banks transfers. This helps the business owners to curtail expenses and help them to have more cashback on every transactions.

• Fast transactions: Transactions are faster using cryptocurrency because the funds does not have to pass through any central authority or banks, it is sent directly between the individuals. There's no transaction limit using cryptocurrency. This enables the business owners to transact very fast with their customers and maximize their profit.

• Bypass tax charges: Transacting with cryptocurrency helps businesses to bypass tax charges. This brings more cash at hand to the business owners. This is because, as cryptocurrency is free from government policies and regulations, it reduces the tax paid by these business owners.

• Borderless Transactions: Business owners can transact with customers in any part of the world seamlessly. This makes business owners to reach large number of people without depending on banks to process transactions.

Cons

• High volatility nature of Cryptocurrency: If business owners does not take precautions when storing their funds in cryptocurrency, they may suffer huge losses because the crypto market is highly volatile.

• Crypto transactions are irreversible: Cryptocurrency transactions are irreversible, meaning that once a transaction is carried out it cannot be reversed or cancelled even if there's a mistake in the transaction, maybe the amount transferred exceeds the due amount to be transferred or maybe the sender transferred to the wrong address. This results to a big loss to business owners.

• Privacy of users: The privacy of cryptocurrency users is protected. This makes it very hard for business owners to recover funds when mistakes is being made. When funds transmitted does not reach it's desired destination, it will be difficult to trace the identity of the sender or the receiver.

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Conclusion

Adopting cryptocurrency in today's financial market has some pros and cons as discussed in the article. But the pros surpassed the cons. Cryptocurrency as being a digital currency is very secured by a strong cryptographic algorithm which makes it very hard for hackers to penetrate the network. The setbacks in cryptocurrency adoption globally has seen a great influence by the government regulations.

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Thanks for engaging in this post! Am glad having you as friend on this great platform. Remain blessed and Stay Safe anywhere you are!

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I am @anyiglobal, a Computer Scientist, Software Engineer and a Blogger!

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Cc:
@crypto-academy
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@pelon53
@nane15
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