Steemit Crypto Academy Contest / S2W2 – Cryptocurrency Adoption by @simonnwigwe
Hello guys,
It is a pleasure to welcome you all once again to my blog. The engagement challenge is moving progressively, and this week we are already at week 2 of season number 2. This week the topic of discussion is an interesting one in which we will be looking at Cryptocurrency Adoption. To understand this topic perfectly, we need to attempt the questions given below. Let's get started.
It is a pleasure to welcome you all once again to my blog. The engagement challenge is moving progressively, and this week we are already at week 2 of season number 2. This week the topic of discussion is an interesting one in which we will be looking at Cryptocurrency Adoption. To understand this topic perfectly, we need to attempt the questions given below. Let's get started.
Discuss the adoption of cryptocurrency in the financial market and how businesses can be boosted through cryptocurrency transactions.
When we talk about the adoption of cryptocurrency in the financial market, we are referring to the acceptance of cryptocurrency in the financial market. Cryptocurrency as we all know is an innovation in the financial realm and it is gradually taking over the entire financial market. We have seen this in the number of users in the crypto world today as it keeps increasing day in and day out, the number of transactions that is been executed each day and the market capitalization of the crypto assets.
To adopt means to accept and put it into use. A lot of businesses today are going digital due to the era we are currently in, and for your business to be more efficient and effective you have to adapt to the use of the trending financial realm. Businesses that accept cryptocurrency have proven to be more effective than the ones that don't. I believe for your business to make headway, you should be able to accept every form of payment.
Cryptocurrency is one of the fastest-growing innovations we have seen in recent times. From 2009 through 2017 when the first cryptocurrency was launched, the market cap recorded the total market value of cryptocurrency to $800B and from that period till this point which is 2022 the current market value of cryptocurrency is about $1.135 Trillion.
Just as I have earlier stated, business owners who wish to grow fast adopt every payment method and that also include acceptance of cryptocurrency. In my area currently, the business that accepts crypto is seen doing far better than those who don't accept it. Universally, we have also seen bigger companies accepting cryptocurrency as a medium of exchange e.g Tesla.
Cryptocurrency is an innovation that has come to stay and those who are wise are already embracing it. The world is moving gradually toward uniting everyone using a generally accepted currency. We all know that in our various countries, we have our native currency which can only be used within the borders of the country and if we step out from our country to another, we have to exchange our currency for another other country's currency to be able to do anything with it.
Cryptocurrency is seeking to eliminate that and that is the more reason its adoption will be possible. Previous before the invention of legal tender in our different currencies we have a medium of exchange and when the legal tender was introduced we abandon the use of the previous to embrace the new method, the same scenario is the case of cryptocurrency in no distance time.
How businesses can be boosted through cryptocurrency transactions
Businesses can be boosted in no small way through cryptocurrency transactions. And few of how business can be boosted are seen below.
1- Easy Payment: Payment for goods and services rendered is easier and less expensive when it comes to transaction fees with cryptocurrency and those who use it tend to have more users and customers at their service.
2- Complete Control: Businesses are boosted with cryptocurrency since the government does not interfere with your asset because you alone have complete control and can make the transaction of any amount at any point in time without consulting a third party.
3- Security and Privacy: Transactions of cryptocurrency are very secure and are kept private. This means that users' identities are completely private since it is only your address that will be visible. The use of cryptography on the other hand makes the transaction not to be tempered.
4- Availability of Liquidity: Cryptocurrency is always available for any form of transaction. Unlike the conventional currency that has a third party within, you want to withdraw some amount of money and then you will be told the amount of money is not available at the moment.
What is your opinion on cryptocurrency being accepted globally for our day-to-day transactions.
In my opinion, cryptocurrency being accepted globally is a dream come true in the financial realm. As we all know that is the major aim of why the crypto asset is created and also to do away with the lapses in the centralized system given to individuals.
Acceptance of cryptocurrency globally will go a long way in uniting the world as one again since we all accept the same language when it comes to the transaction. We know that every country has their conventional currency which can only be useful within the borders of their country but with the help of global acceptance of crypto, you wi be confident to trade and perform transactions at any point you find yourself.
Accepting crypto globally will help people transact with their family and friends outside the borders of the country effectively. Before the coming of crypto, when your relation sends you money from a different country, you must go and change it to your native currencies which most times cost a lot. But if crypto is accepted, within seconds someone from any part of the world can send you a token and then you can use it without stress.
With the acceptance of crypto globally, there will be no third-party interference when it comes to the transaction and that will go a long way in making transactions fast, secure and effective. No limit on transactions and the charges are minimal as well. So I think that cryptocurrency is accepted globally for day-to-day transactions.
Do you think the high volatile nature of the crypto market is a concern to business owners? Discuss.
Yes, I do think that the high volatility nature of the crypto market is of concern to business owners and that is the very reason why it has not been accepted by many business owners till this time. Cryptocurrency is highly volatile and for that reason, so many business owners are not ready to take the risk because it may cause early death due to high blood pressure.
A lot of factors are responsible for the volatile nature of the crypto market such as demand and supply, government policy, media etc. The crypto market can not be completely predicted because a lot of analysts are still making research as to how they can completely say the state of the market.
Image from binance.com
Business owners can lose a lot of crypto investment and also others can make a lot of profit via crypto as well. At the time of writing this article, we can see that the street of crypto is completely bloody and some business owners, they have lost a lot of investment whereas others are taking the opportunity to buy at this point and then sell when the price eventually rises.
What other factors are currently limiting the adoption of cryptocurrency and how can this be solved?
There are lots of factors that are currently limiting the adoption of cryptocurrency and a few of these factors and their solution can be seen below.
1- Volatility: Cryptocurrency is associated with high volatility I.e the fluctuation of the price of the asset. This happens to be one of the reasons why the adoption of crypto assets will be difficult. To some extent, this is good because it can make you instantly rich at the same time it can make you instantly poor. We can see this in the case of the LUNA token, where we had a very sharp drop in the price of the asset.
Solution: Just as I have said earlier it is a characteristic that crypto is known for. To me, there should be a limit to the volatility of the asset so that the prices do go beyond and below the limit. Take for instance the price of steel should be placed between $1- $1.5, this will enable steem to walk within this range of value and people will be confident of the asset.
2- Media: Another factor that is limiting the adoption of cryptocurrency presently is the media. A lot of unpleasant news comes from the media and that alone instils fear in people who have the intention to invest in the crypto asset.
Solution: Media should be regulated not to carry out fake and unpleasant information to the public instead, they should always encourage people on the importance of this innovation.
3- Regulation and Userfriendly interface: Rules guiding the crypto innovation have not been accepted by all and the interface is difficult to operate.
Solution: There should be a general guide that will be accepted by everyone in the world as to how crypto should operate so that the backing of the authority will cover it, though it may seem centralized that will make people have trust in the innovation. The interface of the wallets and exchange should be made user-friendly so that anyone can operate it.
Discuss the Pros and Cons of cryptocurrency adoption by business owners.
The Pros of cryptocurrency adoption by business owners are seen below.
- Transaction process is faster. When sending or receiving crypto assets for transactions carried out, the asset gets to your wallet within a blink of an eye.
- Little or no charges attached. In transactions with cryptocurrency, the charges are very small and sometimes it is negligible.
- No limit restriction. You can send or receive any amount of the token with no restriction of any kind attached.
- Presences of liquidity at all times. Crypto asset is always available, it's not like the conventional currency where you go to the bank and you will be told we don't have this type of money right now.
- No third-party interference. Exchange here is just between the buyer of an asset and seller, with no third party to delay the transaction or ask a series of questions before approving the transaction.
The Cons of cryptocurrency adoption by business owners are seen below.
- Transactions of cryptocurrency are irreversible hence business owners may lose a huge amount because of a simple mistake.
- Volatility of the cryptocurrency can lead to a very big loss to the business owners due to the dip of the asset as it is presently.
- Since it is an online transaction, there is the possibility of hackers getting through your details by providing some links for you to click on.
- Another major disadvantage is that once you misplace your keys, the asset is gone completely. No way to retrieve them.
Conclusion
Cryptocurrency adoption is a possibility that will be achieved sooner or later as the case may be. The world is changing and we are moving toward globalization. Blockchain technology has proven to be more reliable and for that reason, many aspects of life are currently adopting this innovation. The financial realm is not left out as this has changed the economic situations of many people and nations. I am certain that very soon crypto will be accepted globally to be used as a medium of exchange.
I want to invite a few of my friends in the persons of @josepha, @goodybest, @dayographix, @olabillions, @kawsar, and @yolvijrm to also show their participation in this amazing contest. I look forward to reading your articles as regards the topic under review.
Indeed you have written well and also you have stated clearly how cryptocurrency can be bossted and I must say that I love the way you took your time and analyse that area.
It's of no doubt that if business owners can accept cryptocurrency their will be free from transactions fees and their business is of high chance of expanding and going globally.
Thank you for sharing such a nice work. Best of luck.
Thanks my friend for stopping by, your comment on this post is highly appreciated.
For sure crypto currency world is making a huge change to everyone and even achieving a wide influence in our daily life. It's just a fact of taking more time. Good luck with this entry.
Thank you very much for stopping by my friend your comment on this post is highly appreciated.
Very nice to go through your post . Lot to learn .
That's actually a good solution but that would than limit the profit as well . Isn't it ?
Thanks
You are right my friend, thank you for stopping bye, your comment on this post is highly appreciated.
a very whole some writing . keep it up dear @simonnwigwe
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i wish more success to you dear friend
Excellent words shared here. It is very easy to pay and control completely, also has a very high level of security and privacy. So I think it will help a lot to boost any business.
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Yes you are very right. The transaction process of crypto is ver fast and secure. We can send it anywhere at any time. But its disadvantages is that if we send it to a wrong recieving wallet address then it would be a big loss for us. Thanks for sharing with us.
I Invite you please visit my post about crypto adoption also.
Regards:
@malikusman1
Thanks my friend for stopping by, your comment on this post is highly appreciated.