Steemit Crypto Academy Contest / S2W2 – Cryptocurrency Adoption by @bolaji001

Good day everyone. I trust we are all doing well, it might have been a stressful week so far, but the weekend is here let's all have a good rest and recover well, our body needs it.

Anyway, I am @bolaji001 and I am really excited to be participating in another edition of the Steemit Engagement challenge by the Steemit @crypto-academy. Today, I will be writing on the Adoption of Cryptocurrency. I personally do believe it is an outstanding contest idea by the team as it encourages us all to share our view on whether or not cryptocurrencies should be adopted globally in the financial market.

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What is Cryptocurrency?

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You probably have heard of crypto, and it's most popular currencies like Bitcoin, Ethereum, USDT etc. But what really is crypto currency? Well in its most basic form, Cryptocurrency are digital or virtual currencies built on a blockchain used for the exchange of value over the internet.

Source

Cryptocurrencies are digital currencies, which serves as an alternative form of payment to the regular physical currencies like Dollar, Pound, Euro, Naira etc. Cryptocurrencies are created using encryption algorithms and are built on a blockchain which is the major reason why it is so secure, transactions are really fast and it is decentralized in nature. In order to use cryptocurrencies, one needs a cryptocurrency wallet. A cryptocurrency wallet can be a software that uses cloud-based storage service or is stored on your computer or any digital device really. These wallets are like tools/apps where your unique encryption keys are stored and links you to your cryptocurrencies.

Some examples of cryptocurrencies are:

1. Bitcoin.
2. XRP.
3. Cardano.
4. Ethereum.
5. Tether.
6. Polkadot.
7. USD Coin.
8. Stellar.

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

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First, I will like to explain what is meant by Cryptocurrency Adoption, before going into how it can affect the financial market and businesses globally.

Cryptocurrency adoption is a way of making digital currency known all over the world and introducing it into our daily transactions as individuals or as cooperate bodies. Cryptocurrency adoption is just like bring a new technology to the world currency system, though it has not been embraced by some countries in the world but with time it will grow and be generally accepted worldwide.

The adoption of cryptocurrency as the world digital currency has been a blast since Bitcoin which is the mother of all cryptocurrencies. It has gained a lot of popularity which made so many developers to come together to start building blockchains and building blocks in which all other cryptocurrencies can be built.

Since the creation of Bitcoin in 2009, the economic impact of cryptocurrency has been so high and impactful. Cryptocurrency has been in existence for more than twelve (12) years now and it has made a lot of impact in people's personal life, private sectors, cooperate bodies etc. The so-called virtual currency is a viable form of investment that has boosted the economy of many nations because their private sectors, as well as their public sectors are doing well. Consequently, the nation's economy will surely boost.

The main purpose of cryptocurrency is to make the primitive commercial banks have less power and have led to about 1.7 billion people withdrawing their funds from banks and investing in cryptocurrency because banks tend to exploit their customers by deducting unnecessary or uncalled for charges the worst part about banks is the ridiculous interest rate they charge when lending money to their customers. But since the inception of cryptocurrency, people who have adopted and started using it now have complete control of their assets, no unnecessary charges and transactions can be made without the need of any middle man.

One good thing about cryptocurrency is that it is completely decentralized, and gives the user complete control over their account without any external monitoring. All these characteristics of cryptocurrency has made the economy and the financial market flow well and we all know that the more volume of transactions, the more boost in the financial sector.

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How businesses can be boosted through cryptocurrency transactions.

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The decentralized format of cryptocurrency has boosted so many businesses around the world. For example, if a particular business accepts cryptocurrencies as a means of payment, and customers starts paying in cryptocurrencies. This is a huge advantage over businesses that don't, because as we all know cryptocurrencies rise and fall but at the high time of a particular cryptocurrency, the business owner can then use it to buy a more stable coin like BTC or USDT which I think in the end there will be a more net profit compared to if the business owner were to be only accepting local physical currencies.

Another really good example is the world's richest man, Elon Musk. I personally don't know who Elon Musk is but when he started investing in cryptocurrency, he got even more famous and his companies even flourished the more. This was when he moved up to the top of the Forbes list as the richest man in the world. There are so many businesses that were at the brink of complete collapse but have been resurrected by the adoption of crypto into the business.

Cryptocurrency made transactions so easy that one can do a billion-dollar transaction on your mobile device without nobody knowing about the transaction you made but in the case of the banks they give limit to the transaction you can do on your mobile device, if you are doing a very large amount of transaction, they expect you to come physically to the bank and this can bring about external people trailing you all around because of that transaction.

Crypto and cryptocurrencies are growing so fast so it would only be wise for business owners of this great era to adopt cryptocurrencies as a means of payment and also take time to learn about crypto or hire a crypto expert to help with their crypto related transactions, like accepting payment, buying of reliable coins, analyzing and predicting the possible growth of coins and investing in them etc. Checking all these boxes, the business would receive massive incomes.

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

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Cryptocurrency being accepted globally would be a big game changer in the world's financial system/market. Banks, for a very long time now has been so powerful and they control everything about finances in the world and this is one of the main reasons why Satoshi Nakamoto built the first cryptocurrency in 2008 when there was a global economy dropdown and the purpose of its creation is to compete with the banks so that the world will not solely depend on the bank for financial support which has put so many in to great debt till now.

Cryptocurrency has improved the economy of so many nations and has given a lot of people job opportunities and made them independent. Accepting cryptocurrency for our day-to-day transactions would ensure insane business transaction flow like never before, because asset owners would have full control of their assets and can be transferred anywhere, anytime without any hinderance or limits and most importantly with out any third party between the sender and the receiver.

Cryptocurrency has made so many businesses grow well due to fast transactions, it doesn't delay at all in fact, multi-billion dollar transactions can be done using crypto and everything will go smoothly unlike going to the bank to queue before transactions can be made and has crypto gets popular day by day the value get increased but for normal currencies, the value gets in increased very slowly.

The best way to invest in any financial market is to invest in cryptocurrency because it's the order of the day in this era, if you want to invest in stable coins as your money will be safe forever it's available and if you want to invest in buying coins in which your capital invested increases as the coins does, it's also available in various exchanges, the flexibility with cryptocurrency is just so perfect for us and it is best we adopt it for out day-to-day transactions.

From sports point of view, so many football clubs are been sponsored by cryptocurrency companies and of course has brought more awareness about the crypto world to people. One of the next FIFA world cup sponsors is Algorand, a crypto company and YES cryptocurrencies would be among the payment options to purchase a ticket, in case you are curious.

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

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Well, my answer would be YES right away.

The volatility nature of cryptocurrency is a concern to everyone making use of cryptocurrency for transactions, so far it is a digital currency, everyone in the cryptocurrency ecosystem is concerned if it rises or depreciates so business owners have to be very sensitive on how to manage their crypto portfolio.

As businesses adopt cryptocurrencies as a method of payment, business owners should learn at least basic knowledge of crypto, cryptocurrencies, crypto transactions etc. and the tools or software to carry out all these or just hire a crypto expert to handle everything crypto related about the business and simultaneously learn a thing or two about crypto.

This must be said about small businesses, business owners just starting out must be careful because the volatility in the cryptocurrency ecosystem is be too risky for them in terms of accepting cryptocurrency as means of payment. Let me give a scenario, assuming there's a company that sells cars and accept Bitcoin as means of payment the value currently is $20k and after the transaction depreciates to like $18k they are already in loss, so they have to wait for Bitcoin to come back to $20k for them to have maximum gain to be able to my more cars for the next sales, this waiting period might take a long and this can slow down the improvement of the business.

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

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In this section, I will be discussing the factors that is limiting cryptocurrency as a whole which of course would consequently limit its adoption.

Government policy

Government policy is actually shrinking the growth of cryptocurrency in some nations of the world because they've decided to give banks more power over crypto whereby this is not encouraging the activity of crypto in Nigeria. Some countries like Sweden, Russia, Germany and Ukraine etc. are so much in support of cryptocurrency, they encourage the activities of crypto in their country and it's really help them. Let's take Ukraine for example bank activities has been on hold for more than three months in Ukraine and they've been receiving donations through cryptocurrency.

Preferred remedy

The only thing the world needs now is to go fully digital in everything and government should support crypto in all governmental firm and enhanced decentralized process during elections and head count and if possible, the government should build a virtual crypto bank.

Security

Security has been a major issue in the cryptocurrency space and this has been pushing people back from investing on cryptocurrency, so many news of hacking has been flying around and this is making investors more scared of investing on cryptocurrency, that why it's is advisable that all major exchanges become more decentralized and enhance their security so that intruders will not have their way into their ecosystem.

Preferred remedy

There should be a board set up by the world crypto ecosystem that will do a security check on exchanges and wallets so that investors fund will be safe and people will be able to invest more on cryptocurrency.

Awareness and Media

The news has done more havoc to the crypto space because a lot of people follow news a lot and it's easy for some whales to manipulate crypto direction through news, a year ago when China released news on regulations on cryptocurrency which made crypto fall so drastically to $29k dollars. News causes a lot of panic for people and this has led to the crash of some coin like the recent Luna crash.

Preferred remedy

Social media can't be stopped but can be regulated, Owers of popularity social media should verify every news be it's been published to the world and they should regulate news that can cause panic to people holding crypto.

Volatility factor

Volatility factor has been a major setback for the Crypto market because if care is not taking all money invested can be lost within a short period of time
And at the same time also a lot of profit can be made because the volume of the crypto market is about 1.5 trillion dollars and is just to volatility. This volatility made people draw back a bit because they don't want to lose their money.

Preferred remedy

My little advice to all holders and traders of that there's a need to know a little technical analysis even if it is how to know the market structure and how to read candlestick patterns so as to Know when the market is favorable to by.

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

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Pros of cryptocurrency adoption by business owners

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1. It opens international business opportunities to business owners.

2. It promotes small business to a large-scale business

3. Low transaction fee increases sales.

4. It gives business owners maximum profit if well and expertly managed well.

5. Transactions made are very fast such that large transactions can be completed within seconds.

6. The business account cannot be hacked by malicious users on the internet.

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Cons of cryptocurrency adoption by business owners

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1. Since cryptocurrency is not officially regulated by any government body, the business is not really protected.

2. It is highly risky especially for small business owners because cryptocurrencies are so volatile, and their value can be so unpredictable.

3. If wallet or private keys gets into the wrong hands it could be the end of the business.

4. Recovery of wallet or private keys can be extremely difficult and might halt the progress of the business between the time of misplacement and recovery.