Steemit Crypto Academy Contest / S2W2 – Cryptocurrency Adoption by @camzy
Greeting amazing steemians. We thank the Almighty for life. I welcome you all to week 2 of the contest and this week we will be discussing the adoption of cryptocurrency. I consider this an interesting topic, especially in the seasons we are in now. below is my entry.
The increase of cryptocurrencies in the financial market can be seen through a number of transactions and increasing numbers, like how you see increased cryptocurrency users. The use of cryptocurrency is changing from something only little-known into something very valuable.
It is taking over the financial market gradually, especially among the younger generation and we can see adoption gradually creeping into the financial market due to this effect. Adoption occurs when a person or organization accepts the use of something, like cryptocurrency or digital payments. I highly recommend that businesses accept other forms of payment, such as cryptocurrency.
Cryptocurrency has been around for a couple of years now, and it is one of the fastest-growing innovations in recent years. starting from Bitcoin to Ethereum down to diverse altcoins in their different categories. Businesses that want to grow fast should adopt every payment method, including cryptocurrency. Currently, the shops in my area that accept crypto are doing better than those that don't. Tesla is just one example of a big company accepting cryptocurrency as payment. even minor businesses online accept cryptocurrencies like Usdt, Btc, Eth, and so on.
Cryptocurrencies are a new form of currency that is already changing the way we do business. It is gradually replacing our native currencies, which only have value in small geographic areas. The acceptance of cryptocurrencies ushers in a globally accepted form of currency.
With the adoption of cryptocurrencies, they can take advantage and increase their business in the following ways;
One of the problems of native currencies is the ability to interact and send money abroad to other countries. If you have tried it before, you would notice that the stress is way beyond imagination. but with the adoption of cryptocurrency, businesses can be done with ease abroad by buying and selling with cryptocurrencies and with lesser transaction fees.
With cryptocurrencies like Bitcoin, businesses can avoid taxes. This means they can spend more money to reinvest in their business. Transactions are fast and inexpensive, which allows businesses to carry out many transactions without any restrictions.
It will be easier to transact business with someone across the globe if you both use cryptocurrency. For example, a person from one country can transfer to another without stress, cryptocurrency can bridge the gap between their locations by making transactions easier.
Businessmen and women will attest to the high charges they are faced with when using the traditional system, which leads to painful debits in their bank accounts with no end in sight. Bitcoin has created a cryptocurrency that allows them to conduct business with lower costs and less risk attached.
With cryptocurrency, you can transact without the use of a bank or any other middleman. The bank would charge high fees in these cases, but with cryptocurrency, you only need the receiver's wallet address to send the funds across.
The bone of contention as regards my opinion is that I think the cryptocurrency would be a great substitute for native currency in doing business globally.
There is concern around the volatility of the crypto market in contrast to other assets and this has discouraged many business owners from integrating cryptocurrencies as a means of payment with their customers. Cryptocurrency is very volatile, which poses the risk of increases blood pressure for business owners who opt for this as an alternative mode of payment.
There are a lot of factors outside of our control that can affect the crypto market, ranging from changes in demand and supply to governmental policies. Media coverage has had a big effect on market fluctuations, but nobody knows how the market will do in the future because there's not enough research into the matter yet.
So definitely I will say YES the volatile nature of cryptocurrency is really a concern to business owners in the world.
There are many reasons why the adoption of cryptocurrency may be a bit difficult and may be limited. i will make mention a few.
1. PAST HISTORY
Potential investors have shown hesitation about cryptocurrencies as a result of the fear of uncertainty. Following what happened to Luna and UST, people fear that cryptocurrencies are not safe as they portray themselves. This will lead people to stay away from the cryptocurrency market even more. This history is enough to limit the adoption of cryptocurrency in today's business.
Cryptocurrency is mainly associated with high volatility because it can experience sharp increases and decreases in the price of the asset. This can make you instantly rich at the same time as it can also make you instantly poor. The current BTC drop is a great example of this, where we saw a less than desirable drop in its asset value since the year 2020. This is another limiting factor for the adoption of cryptocurrency in business today.
3. GOVERNMENT POLICIES
Government policies are part of the major limiting factors affecting the adoption of cryptocurrency. for example; The Chinese government has made a law that prohibits the use of cryptocurrency because they fear it will cause people to neglect payment of their allocated tasks since transactions cannot be traced. The Nigerian Government has also passed legislation preventing banks from performing any crypto-related transactions which has limited a lot of crypto traders in my country as we tend to do it behind closed doors.
1. SOLUTION ON PAST HISTORY
We can't erase history and we can't act as though it never happened. But if the coins could be transparent with the problems they face rather than take the crowd unawares, it could help investors make the right decisions to either withdraw their funds or aid the company fix up issues with the project.
2. SOLUTION ON VOLATILTY
I strongly recommend that it coin should be placed on a margin based on the shares being held by investors and should be maintained within that range. This could help businessmen and investors determine their estimated highest loss and estimated the highest gain
3. SOLUTION ON GOVERNMENT POLICIES
We really cannot change the decisions of the government but with great sensitization on the advantages of cryptocurrencies and the creation of a system for cryptocurrency traders and investors to be involved in task paying to help build the country.
Transactions have little or no charge depending on the coin or security being traded with
Crypto assets are constantly trading and the liquidity is always there.
your crypto assets are sent and received within a short moment.
Blockchain is a network of servers that operate without time-outs. compared to banks that go for timeouts
It is difficult to reverse a transaction in cryptocurrency. So it is important to be careful when sending money because you can't reverse the payment.
Poor market volatility can have a significant impact on businesses built with virtual currency.
There is always a possibility that hackers can gain access to your account by providing you with false links.
Cryptocurrency is a trend that will be adopted by the world, sooner or later. With Blockchain technology proving to be more reliable, cryptocurrency will soon have many uses; with the financial realm not left out. I predict that very soon cryptocurrency will be globally accepted as a medium of exchange but a lot needs to be handled and resolved to entice more businessmen into the system.