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

temitopef (70) in hive-108451 • 3 years ago (edited)

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Hello Steemians. I am very happy to be writing another contest organized in the crypto academy which talks majorly about the adoption of cryptocurrency. This is my third contest of the week in the engagement challenge and I will be writing about it with no further ado.

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

Cryptocurrency is still battling with serious doubt in the financial market because it has not been globally adopted for businesses and this limit its relevance in the financial market. Rather than being adopted, it has received different criticisms from many financial experts from different parts of the world as they look into its authenticity as a currency worth trading within the financial market.

Because cryptocurrency has not been adopted globally does not mean some markets have not been using it for day-to-day transactions. I read about 14 companies in my research that uses and accepts cryptocurrency for their products and some are Esty, Starbucks, PayPal, Newegg, Rakuten, AT&T, and many others that have been accepting cryptocurrency in their markets.

Furthermore, there are some companies that have accepted cryptocurrency in their markets before but later suspended the acceptance, an example is TESLA, the CEO of this company, Elon Musk is known to be a driving force in the crypto space over the years whose support for Bitcoin at some point was believed to have helped the price of the cryptocurrency to climb up, especially during the era of the acceptance of Bitcoin for payment in the company.

TESLA suspended the acceptance of Bitcoin for payment in 2021 after the boss of the company thinks that the (Proof-of-Work) PoW consensus algorithm for mining Bitcoin is a threat to the environment through dangerous emissions. TESLA only accepts DOGECOIN for now and reopened its likely acceptance of Bitcoin again if there is an assurance that 50% of its mining power is generated from renewable energy.

With this, cryptocurrency is not globally accepted yet, only some companies are accepting it for now, some may be planning to start accepting it but the number now is limited.

How businesses can be boosted with Cryptocurrency transactions

Cryptocurrency can help to boost businesses with its transactions in so many ways that it will be a good alternative to conventional currencies if it's adopted globally. I will talk about some of these ways.

Transaction with no Limits: Transactions with cryptocurrency have no limits like other currencies, this will enable business customers to trade with businesses up to their satisfaction without waiting for it to be carried out in batches. Businesses' stocks or services will enjoy quick sales which will contribute to the speedy growth of the business.

Borderless Transactions: Using cryptocurrency as a mode of payment, there is no border as people can make transactions to any part of the world. This will enable businesses to generate customers abroad who are interested in their services without any border limit, this is also a good one for boosting a business.

Fast Transactions: Transactions with cryptocurrency are very fast and in human nature we love it if our desires are satisfied quickly, and if businesses accept cryptocurrency it will draw more people to them and that will widen the network of the business.

Edge over Businesses Competitors: The adoption of cryptocurrency by a business will give them an edge over other competitors because they have stepped ahead to blend them with a method that brings comfort to their customers, with this they would receive more patronage than other competitors that are still only accepting another conventional method of transaction.

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

If cryptocurrency is accepted globally for our day-to-day transactions, in my opinion, there will be a lot of benefits that will come with it, these are some of the things I will be discussing in this section. Before I proceed, I will like to add that cryptocurrency transactions are decentralized and do not pass through any intermediary. My opinions are as follows.

Getting Rid of Third Parties: Transactions with cryptocurrency are decentralized which gets rid of third parties, this will result in a high speed of transactions to get a product or service quickly without any delay like we see in conventional markets.

Protection of Identity: Using cryptocurrency for transactions will help to protect customers' identity, not everybody loves to show their identity especially when the traded money is much, to protect them for fishy eyes. Cryptocurrency transaction is a good way to achieve this anonymity.

Payment Barriers: Using cryptocurrency will eliminate every payment barrier, some payment methods are not available in some countries which may prevent them from transacting with other companies outside their country, with cryptocurrency, that barrier is broken.

Diverse Options: There are many cryptocurrencies traders can choose from for transactions according to the purpose which puts one at the liberty of using any type of cryptocurrency for making transactions to any part of the world at any time.

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

High volatility is a very big concern to business owners and everyone in the crypto space. The happenings recently in the crypto space are not pleasant at all, the bearishness that took over the market has caused a lot of damage to traders' capitals, the loss which may not be recovered anytime soon even if it may not be recovered in a year through cryptocurrency. Yes, this should bother business owners before they decide to accept cryptocurrency in their business.

Furthermore, Bitcoin which is the biggest cryptocurrency has reduced in value since November 2022, from 69K and it has not been able to reach that level again since then, so as well other cryptocurrencies. Business owners that received Bitcoin for payments at that time will have huge unrealized loss on those payments as Bitcoin is only trading around 20K now. Volatility should be well considered before a business owner chose cryptocurrency as a payment method.

_{Screenshot of Global cryptocurrency market cap chart from Coinmarketcap}

Furthermore, the cryptocurrency market capitalization that was nearly touching 3 Trillion months ago has now dropped below 1 Trillion, I know this has caused many havocs to so many investors, some may have been liquidated and others may have been in losses due to this high volatility.

Business owners should know about these things before implementing a cryptocurrency payment method. I will also recommend new business owners should consider accepting stablecoin to guide to a good extent against the high volatility that is mostly seen in other cryptocurrencies.

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

Cryptocurrency is surrounded by many factors which has been limiting its adoption, some of which volatility is one of them but there are many others and this is what I will be talking about in this part of the contest.

Regulation

Cryptocurrencies are not regulated, this is one of the main reasons many people don't trust the asset. The currency of different countries is regulated by their governments that keep things in check and make rules over time to make sure the value of the currencies is preserved both locally and internationally. For this reason alone without no body checking the operation of cryptocurrency, many people believed it's a scam project with no trust record.

Solution to Regulation

Cryptocurrency project teams should work with the government to make sure cryptocurrency is regulated, implementing a central body that looks into the creation of new tokens, the credibility of a project team, and taxing crypto transactions. This will help to bring trust to cryptocurrency and its adoption globally will be possible.

Anonymity

Even though anonymity is a good advantage for cryptocurrency users, it is also a very big threat in some ways. People that are involved in bad deals often hide under the use of cryptocurrency to send their illegal money from one wallet to the other. This makes it very had to detect the true color of these people and it colors cryptocurrency a means to move dirty money.

Solution to Anonymity

Cryptocurrency wallets should be equipped with a basic security check like a user's national identity number so that if there is any case of illegal money dealings, it would be easy to know who and who are the ones that were involved in it. This will make the crypto space better and more transparent.

Scalability

Cryptocurrency according to the configuration of their blockchain networks has the number of transactions that can be processed per second or minutes which means the more transactions sent on a network the slower the processing of the transactions would be and this leads to scalability issues. Scalability varies from one blockchain network to the other which means one can handle more transactions per second or minute than the other.

Solution to Scalability

Cryptocurrency networks having problems with scalability can adopt layer 2 solutions to solve the problems, this will improve the speed of the network and users will be assured that their transactions won't be delayed for too long. This will contribute to the adoption of cryptocurrency as there won't be doubt about how many transactions a cryptocurrency network can process, this will draw more users.

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

Pros of cryptocurrency adoption by business owners

Decentralized Transactions: It would help businesses to get more customers for this method of payment through cryptocurrency which eliminates third parties during transactions.

No Limit of Reach: Business owners will break the International barriers that might be imposed through conventional payment methods.

Seamless Payment: It will facilitate quick transactions between business owners and their clients and this opens the door for more transactions daily which couldn't have been achieved through other payment methods.

Guide against Double Spending: The conventional payment methods can have cases of double spending through fake transactions that leave business owners at loss, cryptocurrency transactions have confirmations that check the originality of transactions before adding the block, this will help business owners to guide against cases of double-spending.

Cons of cryptocurrency adoption by business owners

Volatility: Cryptocurrency is very volatile which will affect a business owner in a bearish phase of the market when the price falls extremely below the price the business has received payments for some services before.

Restriction: Since there are many governments who are against cryptocurrency and no regulation for it yet, restrictions may be placed on the operation of cryptocurrency in the region of a business which may distort the business flow.

Cyber Attack: Business owners that receive cryptocurrency for their services are more at the risk of different types of cyber attacks, they become targets for hackers to hack into their crypto wallets. So they have to be very careful.

Conclusion

Many of us will be very happy to see cryptocurrency adoption globally but there are a lot of factors surrounding its adoption, like high volatility and regulation problems, and many others, and these limit the adoption. The adoption will help any business to break international barriers in terms of making international transactions easy and reaching more customers worldwide. I am very happy to participate in this contest and I invite @patience90, @patjewell, and @samuel20 to participate.

hive-108451 cryptoacademy-s2w2 club5050 steemexclusive nigeria contest steem

3 years ago by temitopef (70)

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reminiscence01 (74) · 3 years ago

Thank you for publishing an article in the Crypto Academy community today. We have accessed your article and we present the result of the assessment below

Criteria	Remark
Verified User	✅
#steemexclusive	✅
Plagiarism Free	✅
#Club5050	✅
Bot-Free	✅

Comments/Recommendation

You have given your opinion on cryptocurrency adoption. It is no doubt that cryptocurrency adoption will change the narrative of people on the technology and also help to bring development in the crypto industry.
You have also discussed the global acceptance of cryptocurrency for our daily transactions. Cryptocurrency was initially developed for this purpose and we still believ this goal will be achieved in the future.
You have discussed the high volatile nature of cryptocurrency which is a concern to business owners. Giant companies are already adopting cryptocurrency payments despite its high volatility. I think the strategy to deal with volatility can be communicated with other business for easily adoption of crypto in their businesses.
You have discussed the factors affecting cryptocurrency adoption by businesses.

I'm impressed with your submission. Thank you for participating in this contest.

Total|9.5/10

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2 votes

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temitopef (70) · 3 years ago

Thank you so much for your review on my article professor.

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temitopef (70) · 3 years ago

Dear professors, my post in this contest created 2 days ago has not been checked but some that were submitted after me have been checked. Please take a look at mine too and some other writers missing in the middle.

Cc; @kouba01, @pelon53, @fredquantum, @reminiscence01

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1 vote

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reminiscence01 (74) · 3 years ago

I'm sorry about that. It will be reviewed today.

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temitopef (70) · 3 years ago

Thank you.

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steemcurator01 (65) · 3 years ago

Congratulations on a being a winner in the Steemit Engagement Challenge - Season 2, Week 2.

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1 vote

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temitopef (70) · 3 years ago

Thank you.

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forhadmiya (67) · 3 years ago

How are you sir I hope you are well by the grace of God. Sir I have been working steemit happily for the last 1 year. I am an unemployed youth. I have finished my studies honors and there is no job. Sir you help me I want to get your support through my good quality post. I'd like to go dolphin.😭😭😭

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isma-amir (51) · 3 years ago

Excellent discussion of cryptocurrency through this post. You also shared with us the advantages and disadvantages of cryptocurrency. Discussed some of its limitations and solutions, which I like the most. It can boost a business. Because it can transact much faster, unlimited transactions can be done and there is personal security. @temitopef

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temitopef (70) · 3 years ago

I'm glad you like the solution I presented for the factors limiting adoption of cryptocurrency. Thank you for reading.

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1 vote

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akibiggie (50) · 3 years ago

I think many of the disadvantages you have mentioned above are the reasons why crypto have not been adopted. They pose so much threat to the money of business owners which in turn pose threat on the economy of a country and the world at large.

Thanks for sharing this to upgrade my knowledge.

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temitopef (70) · 3 years ago

Thank you for reading my post and I am happy that you have something to learn from it.

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akibiggie (50) · 3 years ago

You are welcome.

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jamezmccoy (64) · 3 years ago

Very well written article my friend, Got more insight

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temitopef (70) · 3 years ago

Thank you for reading.

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camzy (67) · 3 years ago

restrictions may be placed on the operation of cryptocurrency in the region of a business which may distort the business flow.

This is the current situation in my country Nigeria

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temitopef (70) · 3 years ago (edited)

Let's pray it's legalized in our country too, it would be of great help to business owners. Thank you for reading.

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malikusman1 (77) · 3 years ago

Business owners that receive cryptocurrency for their services are more at the risk of different types of cyber attacks, they become targets for hackers to hack into their crypto wallets. So they have to be very careful.

Anything that is online can be hacked by the hackers. So if a company owner recieves money from someone and its hack by the hackers then it would be a big loss for the company. Thanks for sharing with us.

I invite you to visit my post also.

Regards:
@malikusman1

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temitopef (70) · 3 years ago

Yes, but cryptocurrency is more attracted to this people because they know it will be hard for their movement to be traced to real persons at the end of their operation.

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patjewell (79) · 3 years ago

You did a great job with this post!
I wish I had a crystal ball to see the future of crypto.
Personally I think it is going to surprise is 😊
Thanks for the invite!

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temitopef (70) · 3 years ago

Ahahaha, I think I too will love to have a crystal ball to see the future of cryptocurrency. Hope you are good ma?

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patjewell (79) · 3 years ago

I’m fine thank you. All settled in and ready to go 😊

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temitopef (70) · 3 years ago

Alright ma.

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phlexygee (64) · 3 years ago

Very good delivery dear.
Such salient points you have here.
In fact, upon reading I have found some useful information in your article.
Good luck.

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temitopef (70) · 3 years ago

Thank you so much for reading and I'm glad to know you able to get some useful information from it.

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kawsar (71) · 3 years ago

If the transaction is done through cryptocurrency, then it will be transacted in a decentralized manner. There is no limit to what can be limited or traded. Also a transaction is done very quickly here

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temitopef (70) · 3 years ago

Yes it is a very good innovation for business, the transaction is fast and limitless. Thank you for reading.

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kawsar (71) · 3 years ago

Yes you are right and I think it will change the future payment method a lot and in many cases the cryptocurrency will be accepted as the future payment method.

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negro-bby (68) · 3 years ago

Cryptocurrency is highly volatile, I believe that's the major down part of its adoption as well.

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temitopef (70) · 3 years ago

Truly cryptocurrency volatility is one of the major problems that limit its adoption. If the volatility is worked on or reduced, I believe more business owners will adopt it.

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