Steemit Crypto Academy Contest / S2W2 – Cryptocurrency Adoption || by @predomina

Friends, I welcome you to my blog today. This second week of the engagement challenge has been ongoing for some days now and today I am so delighted that I will be dropping my entry into this noble community I.e the steemit crypto academy community. This week we are looking at the topic of Cryptocurrency Adoption.

Adoption of cryptocurrency in the financial market refers to the condition where cryptocurrency is used in the financial market to perform all the day-to-day transactions. Presently, we know that the financial market makes use of conventional currency when performing a day to day transactions. But over time there have been some little changes in the financial market and that has prompted some business owners to adopt other means of payment like cryptocurrency.

The cryptocurrency initiative came a long time ago but the execution of this initiative was recorded in the year 2009 when the first crypto asset I.e Bitcoin was created. When this currency started its existence in the year 2009, only a few individuals accept the use of the currency to perform their business activities with it. But over the years, we have seen that a lot more people are keying in into the acceptance of this currency for their businesses. From 2009 to 2022 we can see the global market cap rising to $908.66B or more.

From the above analysis, it is clear that cryptocurrency adoption is on the increase as more people on the planet earth are seeing it as a more effective way of exchange and hence they tend to accept it. Cryptocurrency adoption can also be seen among some big companies who tend to accept it as a means of exchange for their goods and services. The acceptance of this currency has helped to expand some businesses all over the world. Whenever a business tends to accept many payment methods, then the business tends to grow faster than the one that does not accept every form of payment.

I can remember recently, I was able to visit a very big hotel in my home town here in Taraba State Nigeria. I wanted to make payment and then after receiving the receipt of everything I am to pay for, I demanded their details for payment because I was not with any conventional currency with me I was intending to make a transfer from my bank account. I was shocked when I saw that they also accept payment in crypto and I said to myself, I think this is the main reason why this hotel has grown this far. I then decided to pay via cryptocurrency and within seconds that asset dropped in their wallet and I left whereas the other customer who was trying to make a transfer was still standing and waiting for his bank network

Cryptocurrencies have come into existence to replace the conventional means of payment I.e the normal fiat. This is currently being achieved in many parts of the world today, though a lot of forces are kicking against it we are positive that as the conventional currency replaced the initial barter payment so also the cryptocurrency will replace the traditional or fiat payment method.

Businesses can be boosted through cryptocurrency transactions via the following process listed below. This list is not the complete way but a few of the most important ways according to my little understanding.

i- Speed: Transactions carried out using cryptocurrency move speedily and without any time-wasting. Recall the story I gave above where I sent crypto as a means of payment in the hotel and the other customer was sending normal fiat. I left before him because within seconds my transaction was processed but due to the bank network the other party was left stranded.

ii- Global usage: If crypto is used in business, then everyone anywhere around the world can perform transactions without any issues. Someone staying in a different country can easily send money to his family without any issues at all. The cost of exchanging currency for the one accepted in your country will be eliminated.

iii- Visibility of transaction: Crypto transactions are visible all around the world and that makes the transaction transparent so that no issues of fraud will be associated with it. Sometimes we are debited and for some reason, the other party doesn't see an alert and then he has to stay and ensure that the money drops. Sometimes the party involved must go to the bank and make some complaints before that will be possible.

Accepting cryptocurrency as a global means of exchange in our day-to-day transactions to me is a very very good suggestion and it will go a long way to ensure that business transaction becomes easier and more effective. You will agree with me that even in the conventional currency a lot of people don't carry money around any longer instead they prefer performing cashless transactions.

I believe that if cryptocurrency is adopted for day-to-day transactions, the entire issues associated with transactions of conventional currency will be history. A transaction using crypto will eliminate the transaction limit issues and also the issues of the late arrival of the asset when transferred since it works with speed.

Volatility as we know is one of the major characteristics associated with crypto assets. This is indeed a very big concern for business owners because of the price of the asset changes within a split of seconds. Someone who buys an asset when the price of the asset is $10, and then sells this asset because he needs to stock his store at the rate of $8, has lost some money probably because of the change in the price of the asset.

Volatility goes a long way to affect businesses, sometimes this can be positive and sometimes it can be negative. A man can become instantly very rich due to volatility and in the same way, a businessman can instantly become poor due to this same price volatility. This is exactly one of the major reasons why crypto has not been generally accepted by the world at large. I think if volatility is put in check, then crypto will be accepted even faster.

I have explained above the very first factor which is volatility and the way we can solve the issue of volatility is to try and stabilise the price of the asset. To me, prices of assets should be given a range of values through which they can move to and fro.

Rules and Regulation by the government of a country is another strong factor that limits the adoption of crypto asset. Different countries have various rules and regulations as regards crypto. To solve this, the government should be encouraged to give regulations that will favour the citizens.

Media News and publications are other strong factors limiting the adoption of cryptocurrencies because a lot of fake news and other terrifying things are been posted and that goes a long way to scare people from investing in the crypto asset. To solve these issues, the media should be regulated so that fake and terrifying news should stop being spread.

One other issue associated with the adoption of cryptocurrency is the issue of password recovery which is completely absent. If the password or key of your wallet is missing, then the wallet is also gone. To solve this issue, a password recovery option should be provided by wallets such that a very high verification process be made to restore the keys.

i- Transaction of crypto is very fast than the transaction of conventional currency. So the speed of the transaction is one of the major pros of its adoption by business owners.

ii- Little or no charges are one other pro associated with the adoption of the cryptocurrency by business owners.

iii. There is no third party involved in the transaction of cryptocurrency. This is another major pro of crypto assets.

i- The major problem or cons of the adoption of cryptocurrency is the volatile nature of the asset.

ii- Password or keys misplaced can not be recovered and this leads to complete loss of the asset.

iii- Transactions that happen in the blockchain using crypto-assets can not be reversed if there is an error that occurs during the transactions.

From the analysis, I have made above, it is clear that the adoption of cryptocurrency is very fast approaching globally. The reason I have said this is because over the years we have seen a very huge growth in the crypto world which arise as a result of more people accepting the asset as a medium of exchange. I invite @olabillions, @yakspeace and @josepha to also read through my thought as regards the topic under review.