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

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

I believe as of 2004-2007 there was nothing like cryptocurrency globally, only the conventional currency was used despite its drawback. However, down deep some great men have been thinking, researching and working on how to solve the flaws of conventional currency such as the elimination of third-party, security, privacy, etc.

The truth is that man is insatiable and as the world 🌏 evolves, man will keep on searching for the best, that will fit or match their current lifestyle. So, the creation of cryptocurrency was a result of the effect and the drawback of the conventional currency.

Cryptocurrency just as its name is a digital or virtual currency which doesn't exist physically (can't be seen with our eyes) but can be operated via computer. Since the origin of Bitcoin in 2009, the financial influence of crypto assets has been incredible. Now, in its 13th year of existence, the digital currency that takes the frame of tokens has solidified itself as an achievable currency and form of investment globally.

In the crypto sphere, the number of users keeps increasing day by day, we can observe that in the market volume of cryptocurrency e.g Bitcoin as well as the market capitalisation of the cryptocurrency. The number of transactions executed per day keeps increasing this shows that the financial impact of cryptocurrency is noticeable in several areas nationwide.

However, the innovation of crypto-assets and their related technologies in the financial domain will take over the entire financial market if adopted by the traditional market. We discovered that some nations like China 🇨🇳, Nigeria 🇳🇬 etc has banned cryptocurrency while some set regulation on it. Well, to understand this we have to know what's adoption of cryptocurrency is.

Adoption of cryptocurrency in the financial realm simply implies legalizing cryptocurrency as a standard means of payment in our day-to-day transactions just as a conventional currency. Or we can simply say the adoption of cryptocurrency means to accept and impose it into use in the financial market.

The world 🌏 keep advancing and we are now in the 22nd century where technology
keeps evolving and man has advanced as well by creating cryptocurrency which is a digital currency that is portable.

Nowadays, many business organisations are running digitally or virtually due to the century we are, which means for a business or a company to be more productive they need to adapt to the use of the trending currency ( cryptocurrency) in the financial system.

We have observed business organisations such as Microsoft, Burger King and Pizza Hut stores in Venezuela 🇻🇪 that accept cryptocurrency as a means of payment have proven to be more effective. Thus, for a business or company to grow and advance, they need to accept every form of payment.

For example, Microsoft one of the most exciting businesses in the world 🌏 has accepted the use of the crypto asset as a means of payment to extend the credit of their account. This entails that in Microsoft you can pay for applications, games, and other digital content with both conventional currency and cryptocurrency as a form of payment. Also, Companies like Kodak plan to initiate their cryptocurrency to ensure that photographers are paid suitably.

Well, the truth is that many businesses see cryptocurrency as evil 👺, and don't see it as an innovation that will unite the entire financial world. We can agree that in our various nations, we have our traditional currency which can only be used within the horizons of the nation and if by any means we travel out of our nation to another nation, the currency becomes invalid except we swap it to that nations' currency before it becomes valid.

You can imagine if I travelled out from 🇳🇬 to England 🏴󠁧󠁢󠁥󠁮󠁧󠁿, and I want to pay for something I bought and I give the person Nigeria 🇳🇬 currency like 100 Naira pls just guess what will happen? well, I will leave the answer to you.

Now, we have a currency called Cryptocurrency that has provided a perfect remedy to the missing ingredients in the financial world 🌏. Cryptocurrency should be legalised in the financial realm just like the case of the example I stated earlier, if it was cryptocurrency like BTC I presented to the man as a means of payment he will accept it and will reduce the stress of looking for where to exchange 🇳🇬 currency to the one of England 🏴󠁧󠁢󠁥󠁮󠁧󠁿 as well as the charges involved. As such, this should be the prominent reason cryptocurrency should be adopted because it is portable.

The unique technological advancements and financial economics have boosted the demand for crypto-assets and promoted trust-building among people all around the globe. So, let's check out how businesses can be boosted through cryptocurrency transactions.

How it will Boost business

The innovation of cryptocurrency and its related technologies strengthens and boosts the experience of smart contracts and may lead to a new financial and economic paradigm. Thus, cryptocurrencies could boost businesses due to several technological and financial advantages such as real-time and speedy transactions with the electronic record, security, cross-border usage (portablity), low transaction costs, privacy, anonymity, offer peer-to-peer (P2P) transactions.

Real-time And Speedy Transactions

We all know cryptocurrency is very easy and quick during transactions and this will definitely boost businesses carry out simple and quick transactions unlike we experience delay most times for confirmation of transactions when using conventional currency.

Low Transaction Costs

Here, there is no presence of a third-party or mediator, so the use of cryptocurrency is quite cheap and involves small charges during the initiation of transactions.

Privacy & Security

The privacy and security of cryptocurrency are very strong. Thus, the use of cryptocurrency is very secure and the level of privacy is high. This entails that the user can have any amount in their wallet without any regulations on whether a low or high amount is expected to run their business.

Cross-border Usage (Portablity)

This is one of the amazing parts I like most. Cryptocurrency is portable and can be used anywhere and anytime regardless of where you live. It will boost businesses because it will eliminate the stress of going to the bank or other firm to exchange the native currency. This means someone in Nigeria 🇳🇬 can purchase something and make a payment using BTC or any other Altcoin for the transaction to business in Germany 🇩🇪.

Control

Here, every asset of a business holder is in their custody. They control the affairs of the business since there is no government officials to infringe on their asset and can initiate transactions of any amount at any given time without the involvement of a third party or mediator.

Peer-to-peer (P2P) Transactions.

Cryptocurrency transactions are peer-to-peer, so two different firms can agree on a term and execute transactions without the need for the services of a regulated authority. As such, get rid of transaction time and fees usually encountered with the regulatory mediator.

Transparency

Cryptocurrency and its related technology transactions are not just automated but also digitized and can be tracked on a ledger known as blockchain that can never be manipulated or altered by people, businesses, or governments. So, not only does cryptocurrency bring power and freedom to business, but it also curtails the risk of corruption. We all know we can't exactly trick a network that cannot be changed or altered.

So, the utilitarian nomenclature of cryptocurrencies enables businesses to invest and transact with a world 🌎 economy, which can boost and increase their own business and value of life.

Lastly, cryptocurrency can unlock and open small businesses to broader audiences as it is a universal, global currency, it can be used by anyone, and as such will enable small businesses to serve global clients.

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

In my opinion, cryptocurrency being accepted globally is a favourable move in the financial world. Just as I started earlier that cryptocurrency can convene the entire globe 🌏 in affairs of transaction of goods and services since we all accept the same currency.

Every country has their traditional currency which can only be valid within the horizons of such a country. Thus, the conventional currency separates the world and two business firms can not speak the same language when it comes to transactions because of the currency barrier.

And If the deal is agreed upon between the two firms, one which is the initiator of the transaction has to exchange the currency to suit the other person's native currency. Believe me, it involved time, fee and stress.

Hence, the acceptance of cryptocurrency in our day-to-day transactions will assist to build corrective balance among the various currencies of the world. Also, firms, as well as people, will be optimistic and confident to exchange and execute transactions across their nation that any firm or person at any part of the globe will be able to execute transactions that are safe and secure. And it will eliminate, fees, stress and hardship when making transactions.

Nevertheless, the adoption will get rid of the mediator or third party, as such will make transactions to be fast, safe and secured as well as reduce chargers ( transaction fees).

So, transferring currency to your family or friend outside your domain will be very fast, safe and secure. And the concern to change the currency to suit their family or friends' country currency will be abolished totally when cryptocurrency is accepted.

For example, previously when I want to transfer money to my friends outside Nigeria 🇳🇬, I always go to the bank sometimes the queue is always long. Even when I succeed in entering the bank, I will fill out the form (paper) given to me by the bank which means there is much stress. But correctly, I only demand their wallet address then I will send money as cryptocurrency such as USDT, BTC and so on.

To be honest, the adoption of cryptocurrency globally for day-to-day transactions will solve some problems in the world.

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

Yes, it is a big concern to business owners. Although right from the on-set, cryptocurrency is volatile and has a small size when compared to traditional currency, Gold and Silver. It runs digitally or virtually and no tangible goods or commodities back it. So, the volatility is just part of the cryptocurrency because it relies on the following factors like the principle of demand and supply, as well as speculations either from the government policy or media.

Thus, many business owners are scared of the volatility of cryptocurrency and they are not ready to accept the risk because it might lead them to serious health problems such as heart attack, high blood pressure or death.

The point about the volatility of cryptocurrency is that it affects the technology of the blockchain, Liquidity, and market price and in a scenario where the supply is high that's selling pressure is high 🆙, it all depends on the number of buyers ready to push the market price up at a specific timeframe. And if buyers fail, the market will keep on moving downward, which can cause more panics and cryptocurrencies that don't have a good fundamental project will crush or the price will drop badly.

For example, in this current downtrend or dip, we observed some coins dropped massively including BTC while some were kicked out like the Luna. Last month, we know the volatility of the cryptocurrency affected the technology of their Terra ecosystem and the price of their native coins like Luna is unable to rise instead they rebranded to Terra Classic LunaC which the price is nowhere to be found in the market.

Well, not only the Luna including Internet Computer(ICP). As of January 2022, the ICP price was $37.69 and currently, it's $5.39. There are other coins too that have depreciated massively and believe me some holders of these coins especially those that bought them with huge money may have complications in their health.

Moreover, every business owners desire a better investment to increase their profit as well as to boost their business, cryptocurrency has the capacity but its volatile nature of it is a big concern to them. As we all know nobody can predict 100% of the price direction of cryptocurrency and it puts business owners in a confused state.

I think if there is no possible remedy to regulate this volatility, it will be hard for the globe to accept cryptocurrency as it will not favour business owners.

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

SCALABILITY

Scalability is one of the factors with cryptocurrency. We all know that cryptocurrency is very fast well that's only when the users of such cryptocurrency are few. There are several good cryptocurrencies which have enticed many investors and the number of users keeps increasing day by day. So, there will be a problem in the aspect of slow transactions because of the large number of users in the system. As such, the transaction speed will be slow as a result of complexity and complications in scaling.

✅ So, to solve the issue of scalability, a system that can fit a large number of users such as staking, lighting networks and sharding should be adopted to enhance the process of transactions.

MEDIA

Speculations from the media tend to be a factor affecting the adoption of cryptocurrency. What we hear plays a vital role in life be it positive or negative, and there are series of awful news from the media about cryptocurrency this news can put more fear in people as well business owners who have the ambition to fund the cryptocurrency.

Positive news from the media leads to an increase in crypto-assets and can make the market turn from bearish to bullish. On the other hand, negative news from the media leads to a decrease in crypto-assets and can make the market turn from bullish to bearish.

✅ So, to solve the issue of Media, there should be proper regulation on the media system that's negative or fake information to the public should be reduced to some extent. Instead, they should speak more of positive news to motivate people and tell them about the significance and benefit of the innovation. Well, I know is there work to broadcast 🔊 news both negative and positive but at least the negative aspect should be regulated properly.

REGULATORY CHANGES

Since the regulation of crypto assets has yet to be restricted, the value or adoption is strongly impacted by expectations of future regulation. In a severe case, for example, when the Nigeria and China governments respectively restrict citizens from holding cryptocurrency, we observed there was a depreciation of cryptocurrency values. The faith in cryptocurrency lies on the shoulder of the government and since they are not under any control, many people and business owners will be terrified to adopt and make use of the currency in their businesses.

✅ Well the role of the government is to protect their citizens. So, to solve the issue of Regulations, the central government should provide a special team that will educate and enlighten people or businesses about the potential benefits, flaws, costs, risks, system requirements, and more about cryptocurrency.

Also, the special team should design a perfect guide or roadmap( on how crypto should be operated) that will be accepted by everyone around the globe that will be the best fit for their business objectives. This will provide the right path for their business, as such, it may seem like a centralized system but it will entice more people to trust in the innovation.

LACK OF KNOWLEDGE ABOUT CRYPTOCURRENCY

This might not be a problem to some people but to me, it's a major problem. When you don't know something believe me you won't see its benefits instead you will only be seeing the bad part of it. Many people and businesses don't know about cryptocurrency and they're sufferers of fraud and scams.

And once they're been scammed, guess what they will announce it to everyone, spoiling the name of the cryptocurrency and its related blockchain. Many that accept such news are influenced by fear as such, the adoption will be affected.

✅ Well, to solve this, a proper understanding of cryptocurrency and its related blockchain technology such as the potential benefits, flaws, costs, risks, system requirements, and more about cryptocurrency is needed for any user before investing.

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

Advantages

✅ one of the advantages of cryptocurrency is the unlimited or infinite possibilities for a transaction. Basically, each of the wallet holders irrespective of the wallet can send tokens to anyone, anywhere on the globe. The amazing part is that the transaction cannot be monitored or prevented, so the wallet holder can transfer coins anywhere in the globe 🌍 wherever a user is placed with a wallet. It only requires smartphones or connected internet 📶 devices.

✅ Peer-to-peer Purchasing; One of the biggest merits of cryptocurrencies is that they do not involve financial institution mediators. This means two people or businesses can exchange assets without the involvement of a third party.

✅ Low Transaction fee; Here, the transaction fees are very low due to the elimination of third-party or intermediary

✅ Decentralization; in the cryptocurrency system, there is no central controlling authority or government policy. The system is attributed to all partakers, so each crypto wallet holder is a member of this system. This implies that the central authority or government has no power to command cryptocurrency owners. They do their things their way without any involvement from the central government.

✅ Transaction speed—the transaction speed of cryptocurrency is amazing. With cryptocurrency, the capacity to make transfers anywhere to anyone is very fast and it can happen within minutes after the system of the cryptocurrency process the payment.

Disadvantages

✅ One of the cons of cryptocurrency is Strong instability. The ups and downs of the value of some cryptocurrency as a result of volatility creates a problem for traders as well as business.

✅ Difficult to understand- Believe me not everybody understands how cryptocurrency works because they're difficult. You can imagine nobody can predict the direction of the market price of cryptocurrency 100% including the so-called experts. Well, maybe it's because they're relatively new and come with a learning curve. A lot of people end up investing in cryptocurrency without adequate knowledge, and as such are losing their funds and this is a problem in general.

✅ Irreversible Transactions - This is one of the biggest cons of cryptocurrency. Mistakes are inevitable, so they must occur. In cryptocurrency, once a user initiates the transaction and made a mistake on the recipient address, there is no way to cancel the payment and you can't get a refund of the amount paid from the exchange.

The only option left is for you to ask the person to return the funds that are only when you noticed the person and if your plea is denied, then just forget the money and replace it only if you have enough.

✅ Anonymity- the anonymous nature of cryptocurrency is now the best way used for laundering or financing illegal activities. This means it is a haven for criminals and money launderers. Illicit activities with cryptocurrencies are a reality, especially with bitcoin used for money laundering, fraud, contraband transactions as well as tax evasion.

✅ Also, since it's digitalized transaction, there is a tendency for hackers to access your details. It can come through the fake link and once it's clicked the hackers get access to your account and they might transfer all the funds to their wallets.

CONCLUSION

Cryptocurrency and its related technologies will dramatically modify or change the entire globe 🌏, especially how we do transactions, just as the Internet revolutionized communications. However, the first commercial transaction with Bitcoin, the first cryptocurrency starts the revolution of this innovation.

Perhaps business and financial worlds have sought to accommodate and merge the new financial technology into their day-to-day activities, though is been restricted by some factors such as regulations from the government. The truth is that cryptocurrency presents many opportunities, but also many crises. The problems they offer have power as a clarifying variable for cryptocurrency adoption.

However, volatility is a big factor affecting the adoption of cryptocurrency. So, the willingness to regulate and operate crypto asset risk could be a precondition for acceptance, as such, the performance expectancy for a specific crypto asset was a greatly important factor for its success.

Lastly, before investing do proper research about the cryptocurrency and its related blockchain.

THANKS FOR READING THROUGH