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

Assalamoalaikum

I hope all of you will be fine and enjoying good health. As you people know that my papers are near so i don't find time to participate in the Steemit engagement program season 2 week 2 but due to my craze and love to share my knowledge about Cryptocurrency make me to post my article. So today this post is actually my participation in steemit crypto academy contest.

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I have few suggestions for the Improvement of Steemit engagement program. Please tell me where can i share those suggestions and how can i convey my message to the organizers of Steemit engagement program.

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So, without wasting anymore time let's begin towards our discussion.

Adoption of Cryptocurrency in financial market

Actually financial market means the marketplace where buyers and sellers can sell thier digital assets. The digital assets may be in form of digital currency, services shares of market and goods. Here buyers and sellers do thug of war and thier activities are responsible for shaping the direction of Market. If there is more demand then price go up but if demand is decreasing but production is increasing so price falls.

In ordinary financial market the prices fluctuate in a narrow range but when we consider Cryptocurrency then we can see huge dumps and pumps. Cryptocurrency is not new in financial market. It was founded in 2009 and now it has Billions of Dollar. But the adoption of Cryptocurrency is under process.

As according to the coinmarketcap the total volume of cryptocurrency is more than $926,680,901,953 and when it was at it's top it's Volume was $2.9T.

Due to transparency and security Cryptocurrency is going for the evolution of financial market. It's high speed transactions attract the businessman because in a business the main thing is the payment method and how secure and fast is the main concern of a business.

Cryptocurrency is making everyday new records and due to fomo, Advertising and many other invitations of crypto are attracting the financial market and due to no of reasons it believed that within one decade Cryptocurrency will dominate the whole financial market and may be Bitcoin become the international payment currency and if this happened the dollar will dump to it's Lowest price.

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Boost in Business due to Cryptocurrency

It has been seen that a business which adopt cryptocurrency and accept the Crypto payment always lead then same business without accepting. This is because having more and more payment method facilities it's user in a number of ways some are discussed below.

Expand your business Internationally:

Allowing crypto payment and accepting crypto payment help you to expand your business. As we know that payment method is main concern of international users and often they can't purchase because they don't have convinent method to pay internationally. Example: A user want to purchase a book from some website which is Regulated in some other country he can't pay because he has other Currency which is not accepted in that Country so thier purchase fail and if he want to exchange then due to taxes and restrictions he can't afford it.
But if the company allow Crypto payment he can make payment in few seconds.

Security and Privacy:

Due to the Decentralized nature of crypto it has high encoded security and the source code is made in such a way that it is virtually unable yo track so in cryptocurrency thier is much more security even than banks and security and Privacy is the main concern of a business. A business required a secure and private wallet which crypto allows.

No tax:

Cryptocurrency is boosting small as well as large business beca there is no tax in Transactions. If the business makes a transaction through banks, Atms and credit card then government and bank has it's own taxes which crypto removes and allowed it's user tax free transactions.

Fast payment:

As cryptocurrency transactions are real time amd take place within few minutes so crypto is boosting the business because it allow user to send payment instantly and in this way thier deal can be made more precisely and accurately.

Easy access to funds:

In case of banks a user can't access it's funds all the time amd 24/7 at any place but cryptocurrency allow it's user to access funds through internet in digital wallets all the time and he can access it at any place with the availability of internet.

• Tesla is accepting payments in Dogecoin. There are many other platform who announced to take payment in cryptocurrency.
  Source

Cryptocurrency being accepted globally for our day by day transactions

Yes, cryptocurrency is being accepted day by day because of our daily transactions.
According to a legit Source it is claimed that almost 330k transactions of btc take place everyday and 1.2M of transactions of Ethereum. So these digits suggest that people are adopting crypto day by day.

• Turkey has highest rate of adoption of crypto of 20% although it is ban in thier country.

• 28,866 Social posts are posted daily about Cryptocurrency everyday, 1203 per hour and 20 per minute. So you can make an idea how Cryptocurrency is being discussed globally in social media.

• There were 300+ exchanges in 2020 but now im 2022 there are 527 registered exchanges. This huge increase in exchanges is due to the high percentage of cryoto adoption day by day.

• There are 14000+ ATM in different countries which indicates that Btc transactions and other cryptocurrency are growing day by day and all of thes aspects show that Crypto will evolve a new financial digital market.

Volatility of Cryptocurrency and it's concern with Business

Volatility means that Fluctuations in the price of a coin. These fluctuations are in narrow range in other Markets like stock exchange but when we take a look on Cryptocurrency then we see that crypto market fluctuate in a wider range.

Factors Causing Volatility:
Here are the few factors which are responsible for the volatility of Cryptocurrency.

• Limited supply of coins.
• Cost of Btc and other coins because they consume much electricity when mined.
• Various exchanges manipulate market.
• Regulations and limitations.
• Fomo and Bad news
• Scability and Governance

Let us discuss the Volatility of Btc by comparing it with past.

• Btc was at 0.01USD in May 2010.
• On April 2011 Btc hit $1 within just one year we see a huge pump.
• In December 2017 Btc hit $17900 and then reach 20,000 USD.
• But on 17 December Btc fall to $14k within a month we see a huge decline in Btc price.
• Now last year the day was 14 April 2021 Btc makes all time of $68,4000 but now btc is moving between $20k to $22k.

So, I hope you will able to understand how volatile crypto is.

But if we see these fluctuations as a business concern then we can say that these pumps and dumps may cause huge loss of a businessman. Although this volatility is favorable for short time trader and Cryptocurrency allow to make huge profit within few hours but if we realized that a business man if hold Some coins just because he accept Cryptocurrency in his business then you may see that he may gain huge loss and he may end accepting crypto payments. As you know everything has pros and Cons same is the case with volatility of crypto.

Source
Here you can see the market is bleeding.

Source

And at the same time you can see that Some coins are making huge returns.

Factors limiting the adoption of Crypto and thier Solution

There are many factors which are limiting the Cryptocurrency and are hurdle for the adoption of Cryptocurrency.

• Volatility:

Volatility is the main factor which is hurdle between the adoption of crypto. As the Cryptocurrency is regarded as highly volatile Market so big business and Countries are not allowing crypto because it causes huge loss. Investors think that thier Assests are not safe because price fluctuate at high pace and sometimes Millions of Dollars become cents.
As you see In case of Luna

Solution:

The manipulation especially from exchanges should be checked and stable coins are Regulated and thier Audit should be done on weekly basis and proof of stake coins should be Promoted. Do your own research (DYOR) before investing in any coin should be Adopted.

• Fear of Uncertainty:

In crypto market there is always a fear of uncertainty no one know the next move of Bitcoin and other Crypto. Sometimes centiments change even good news are coming and sometimes Btc pump even there are limitations, ban and bad news coming. So the investors are very uncertain and the fear of loss cause them to avoid crypto.

Solution:

The uncertainty in cryptocurrency can be reduced by keeping control on your nerves in fomo and dumps conditions. Don't Participate in any pump and dump and invest wisely and do some research about the project before buying it's Coin.

• Difficult Interface:

Cryptocurrency is regarded as difficult to use. As cryptocurrency is a Blockchain technology and most of the persons are unknown to it's principle and working so sometimes due to lack of information and Knowledge losses may occur.

Solution:

The interface of exchanges should be make user friendly and some guide lessons are made for understanding the principal of cryptocurrency and how to transfer funds and some other Important usecase are guided through videos.

• Environmental concerns:

Cryptocurrency mining is greatly affecting the the environment as it cost much electricity and in this way the production of electricity through non-renewable resources cause the pollution. Elom musk is a great supporter of crypto but he says that mining of crypto should be stoped.

Solution:

The mining of Cryptocurrency should be done with the electricity produced through sunlight i mean solar energy and We should move towards proof of stake instead of proof of work.

Government policies:

Crypto is being limited just because of government policies there are many countries which completely ban crypto as China, Turkey, Uk and some other countries. This greatly effect the adoption of crypto because people don't want to do which is illegal.

Solution:

Due to numerous inovations of crypto it is yhe responsibility of the government to regulate crypto and make law about Cryptocurrency so users can use cryptocurrency without any hesitation.

Pros and Cons of crypto adoption

Pros

Cryptocurrency adoption in business has no of Benefits which are discussed below.

Protection from Inflation:

Other Conventional Currencies can be printed by government at any time as wee seen that America Print 40% of Dollars in few years than the past.
But In case of Cryptocurrency they are issued with a finite Quantity as Btc has a Finite Quantity of 21 M coins so no new coins can be printed and the price go High and high because of increase of demand.

Self Governed:

In case of Cryptocurrency all the assests you have in your wallet are your own. I mean that no one can manipulate your assests. You have full control on your assests and no one can steal your assets even the organization who made Wallet Don't have access to your wallet all of this is just because of Decentralization and this is best environment for business owners.

Security:

The security of funds is the major concern of the Investors and Big business. They always need a secure platform, banks are trustable but not secure as Cryptocurrency is. That's why security is the big advantage of cryptocurrency which attract business owners.

Errors are rare:

Banks and other financial organization often become victim of errors in thier system and need a regular update. Sometimes thier system become congested but in cryptocurrency these cases are rare.

Protection from hacks:

Cryptocurrency is regarded as highly secure and private system which are very hard to hack as the Wallets and Coins are made in Such a way that thier digital source code are not traceable. So hacks are too much rare in crypto that's favour the adoption by business owners.

Cons

Everything has benefits as well as disadvantages same is the case with cryptocurrency. Crypto has some drawbacks which i listed below.

• Illegal Transactions:

Cryptocurrency may be use for illegal transactions like to pay for drugs on Dark web. As the transaction of Cryptocurrency can't be track i mean we can't know the user information through it's address. So different illegal works are done through cryptocurrency. Like funding to the Terrorists. Weapons are also dealt through cryptocurrency.

• Data loss Financial loss:

In cryptocurrency Data loss (loss of private keys results in the loss of whole assets and there is no way to Recover your private key or without your master key. So sometimes user unfortunately loss thier access to thier Wallets because they don't have access to thier private key or Wallet key.
Due to Decentralization there is no way to recover the coins and your assests will remain struck in your wallet and no one can help you.

• Decentralization but still Operated by organizations:

Although Cryptocurrency is Decentralized but the coins and exchanges can be operated by thier owner. As the owner can shake the whole market and he can decide the future of that coin because he has much percentage of that coin and often holders decide the future of coin.

• Everse Effect on Environment:

Cryptocurrency is causing a major effect on environment and many countries due to environmental concern are going to ban crypto or already baned it. Many big investors and share holders are not adopting Cryptocurrency because it is badly effective the environment because of it's mining feature.

• Energy crises:

Cryptocurrency adoption by business Community is leading to the energy problems as much of electricity is being used by the mining rigs and they need electricity in mega watts. A mining factory takes hundred of mega watt energy and cause burden on the government for distribution of electricity.

• Suspectable to hack:

Cryptocurrency is also Suspectable to hack. Although Cryptocurrency is Very secure but the exchange is the problem. As exchanges save the data and account of a user through a special Id so hackers hack the exchange and got excess to funds. As we see in case of Bitfinix .

I want to invite my friends @steemdoctor1, @blue0 and @jani786 to this amazing contest.

I hope i will get support from the community, waiting for your precious comments

Thank you for reading.

Participant: @cryptobitcoins