Copyright free image from pixabay

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

Actually, the world has been taken aback by the emergence of cryptocurrencies so much so that we are left not with the question of whether there is the likelihood of it being accepted on a much larger scale but rather the question to ask is when will it finally be adopted in a much larger scale. Because of this it is important that we all study to understand the uses and benefits of cryptocurrencies. However, in matters like this it is usually necessary that we look at the antecedent of novel technologies, how they have been adopted and how they have probably performed in the long run in our bid to determine whether adopting cryptos should be a worthwhile venture.

A study was recently carried out by Finder.com and in that study it was revealed that the number of Americans that owned at least a crypto coin was about 27 million. Out of this total number about 44.5% of them actually had a Bitcoin. However, it should also be noted that the total number is not even up to 10% of the entire population of Americans. But it is worthy of note that new technologies would usually take time before they are completely embraced by the rest of the population. This had been the case with the internet which upon its inception had only just been adopted by some universities, government and businesses before most individuals began to queue in.

So, in like manner cryptocurrencies would be and are in fact being adopted gradually. Then, it would get to a level where it would experience a more rapid rate of adoption before it eventually becomes explosively adopted by everyone. One may be wondering whether it is still early for us to be buying coins to store them. In that regard it is necessary to note that cryptos have gotten to all time highs but even Bitcoin has witnessed an 18-month low which gives us ample opportunity to still buy the coin at relatively cheaper price. This is due to the fact that although the crypto market is currently in a bearish season there are great potentials of it being explosively adopted in the near future with requisite government regulation and control.

This adoption of cryptocurrencies is very necessary because it would be of help to businesses in so many ways. Some of these ways include:-

• With cryptos transactions can be completed and monetary value transferred at a very low cost
• With cryptos it is possible for businesses to make transactions that are transparent and recorded immutably
• It is possible for businesses to even invest monies they are not using at the moment in the form of crypto staking and yield farming to gain higher percentage than what is offered by conventional banking system
• Businesses can make higher-level transactions that involve huge amounts of money without risk of bank censorship.
• Businesses can also interact privately where details of transactions are only open to the two parties. This can be done with such coins as the Monero

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

Copyright free image from pixabay

First and foremost, accepting cryptos for daily transactions globally in my candid opinion would be a great step in the correct direction. A lot has already been said on the innovative ways we can transact that are only enabled or made possible with technologies like the blockchain technology which underpins cryptocurrencies. There are a lot of things we can now do with cryptos that we were unable to do without cryptos especially as we carry out our businesses on a daily basis.

I have already enumerated some of the ways it can be used to improve businesses on a daily basis. All over the world the need to improve speed and efficiency in business delivery has become very paramount in addressing challenges in businesses. Cryptos come with these solutions. It is not surprising that a lot of businesses have started adopting digital coins especially Bitcoin to transact, operate and even make investments.

Nevertheless, much as I would greatly support the acceptance of cryptocurrencies on a larger scale globally for businesses daily I would still like to call the attention of people to the fact that cryptos are highly volatile and unregulated. Perhaps, these two are the greatest challenges I can identify with cryptos for now. The highly volatile nature makes it such that a coin you accepted at a particular value in exchange for a service could have its value greatly reduced in just a matter of hours.

To address this particular challenge stablecoins should be used and such other stronger cryptocurrencies that belong to the larger market capitalisation like Bitcoin and Ethereum can also be greatly used under the media since their values do not fluctuate greatly. As for the issue of regulation, it is necessary that the government steps in to not only adopt but also regulate cryptocurrencies and make favorable laws. Without regulation there will be no trust and if the laws are unfavorable like China shutting down crypto mining sites. They could cause great dissatisfaction and even loss of interest. Consequently, values of cryptos may not be stable and would be unreliable.

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

Copyright free image from pixabay

The fact that cryptocurrencies are entirely new constitutes the major reason why its value has been observed to be very volatile. For the volatility in the price of cryptocurrencies to be controlled there is need to give it more time for it to settle. However, this doesn't mean that investors should stay away. Instead, investors should come in and buy especially now that the prices are down so that in the near future the market capitalisation would increase giving the market the needed stability. Nevertheless, this is just like any other new project or concept.

Actually, the high volatile nature of cryptocurrencies should be a thing of concern for business investors. However, there are ways to handle this challenge. One of such ways is to avoid getting too emotional and understand the reason for which you are investing in any particular cryptocurrency before either investing or even using them (accepting them) for businesses.

You should make a conscious effort to learn important things like knowing how to time your entry into the crypto market so that you buy in periods of accumulation or when the market has gone down preceding a period of slightly bullish run so that you can make profits even if just in the short-term. Even at that you should know when to actually hold your coins expecting them to monumentally increase in value in the future or in the long run.

Furthermore, business owners should learn to diversify their portfolio when adopting cryptocurrencies or deciding to invest in cryptocurrencies knowing that even if one does not perform well and other could help them recuperate their losses.

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

Apart from high volatility, there are some other factors I have discovered based on my research that are responsible for limiting the adoption of cryptocurrencies from being adopted on a larger scale. In a tabular form I will briefly mention the factors and also give possible solutions to them.

Limitations	Solutions
Inadequate, unsustained and negative media coverage and awareness of the masses	There should be enough positive and regular media coverage and better education of the masses not just on the importance but also on the necessary underlying infrastructure of cryptocurrencies
At the moment conventional setups like VISA and PayPal can handle more transactions per second than the block chain technology of cryptocurrencies	It is important to implement projects like lightning network of Bitcoin and other projects like Plasma to make blockchains more scalable
There is a poor level of regulation and global view of cryptos by some governments	It is necessary for governments to widely accept, regulate and possibly declare cryptos as legal tender just like El Salvador for cryptos to actually thrive
There is the problem of possible security breaches especially of crypto exchanges as has been seen with Mt Gox	It is necessary to implement very solid infrastructures to ensure that crypto exchanges would be very safe and secure and even setup possible funds as has been done by Binance to compensate users in the case of hacks while users on their own path should learn to make use of cold storage with funds that are not in use
There is some kind of competition internally among several crypto projects as some simply mirror or mimic already existing use cases of their competitors	Newer crypto projects should be more focused on building blockchains or solutions that solve the problems of the older ones instead of simply just copying them

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

Copyright free image from pixabay

There are a number of reasons why the adoption of cryptocurrencies by businesses would be greatly encouraged. All the same, there are still reasons why some people may decide not to. To start with, some of the reasons why cryptocurrency should be adopted or prose of cryptocurrencies include:-

Pros of Cryptocurrency Adoption:-

• Cryptocurrencies when adopted can be used in a manner that cannot be controlled or unduly regulated or censored by any governmental or related agencies or organisations as the infrastructure is wholly decentralized and left at the hands of the end users.

• Oftentimes, the national currencies of different countries could be manipulated by the government or Central Bank in a way that could lead to inflation and devaluation. Some cryptocurrencies have limited or maximum supplies like Bitcoin that has 21 million. Hence, this acts as a buffer against the likelihood of artificially induced inflation that could be experienced in conventional currencies.

• With the adoption of cryptocurrencies for daily businesses transactions can be carried out in a much speedy and efficient manner with equally comes at low cost

• Adopting cryptocurrencies for businesses would ensure a high level of integrity and honesty as miners are responsible for updating the blocks thereby keeping the needed records of business transactions

Cons of Cryptocurrency Adoption:-

As much as there are a lot of benefits and advantages associated with the adoption of cryptocurrencies, there are still some disadvantages that should be addressed. Some of these bad sides that need to be addressed in the adoption of cryptocurrencies can include:-

• Adopting cryptocurrencies for businesses would mean that business owners would have to keep their digital assets in wallets that contain private keys. Losing these private keys means that all the money stored in such wallets has been lost since the private keys cannot be recovered.

• There are several processes that could be involved in trying to transfer to the cryptocurrencies. In some cases you may have to necessarily use a few permitted fiat tokens to purchase the required cryptocurrencies. If these fiat tokens are not your national or regional currencies you may have to start undergoing some preliminary digital conversions and only the internet savvy may be able to undergo this process thereby leaving many uneducated populations in the dark.

• Adopting cryptocurrencies for daily transactions can also increase the risk of illegal transactions being carried out. The secured and private nature of some cryptocurrencies could mean that large sums could be illicitly or illegally transferred for the wrong purposes or businesses without being monitored by the government.

• In a lot of instances, the creators, developers or organisations behind a particular blockchain usually own most of the circulating supply of the coin. This makes the possibility of manipulation by few persons real and highly disastrous.

CONCLUSION

In conclusion, the adoption of cryptocurrencies by the global community is a sure thing: it will start gradually but will eventually explode from my own observations. Nevertheless, there are some things that have to be put in place so that there will be a smooth adoption of cryptocurrencies and in order to mitigate some of the perceived shortcomings of different crypto projects or blockchains.

Cryptocurrencies are highly volatile and this means that investors should not just blindly follow in the name of making investments. Instead, they should seek to understand and time their entries into the crypto market. There are quite a whole lot of benefits in adopting cryptocurrencies for business such as speed, efficiency and transparency. Still, the crypto privacy issue could be exploited in a negative way. The government should come in to regulate, monitor and also control the usage of cryptocurrencies to ensure a successful global adoption.

cryptoacademy-s2w2