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Why Cryptocurrency is The Future of Business Transactions

29 September 2020 16:00, UTC
Why Cryptocurrency is The Future of Business Transactions
By Andrey Sergeenkov

The cryptocurrency market has grown into a thriving economy whose disruptive power is undeniable. This rather nascent technology is slowly encroaching on traditional finance territory and has been touted as the future of financial transactions.

17.09.2020  |   in Cryptocurrencies
To be fair to critics who believe that cryptocurrencies are a bubble waiting to burst, cryptocurrencies (particularly Bitcoin) rose to fame on the premise that they will knock out traditional systems of payment. These currencies highlight some of the flaws of legacy systems such as high fees, lack of privacy, and long waiting times to process transactions. Although cryptocurrencies have shown that they have their own shortcomings and cannot replace fiat at this time, the tech has made some remarkable strides.

Over the past five years, the number of Bitcoin users and transactions has grown at an annual average rate of nearly 60%. Other digital assets such as Ethereum, Ripple’s XRP, Stellar Lumens, and a number of others have also enjoyed deepened commitment from both private and public investors.

To further put this growth in perspective, as of August 2020, there was $1.95 trillion USD in circulation. Meanwhile, the value of all cryptocurrencies combined is over $364 billion USD in the same month. This points to the reality that more people are becoming interested in cryptocurrencies.

A Budding Technology

When Bitcoin rose from less than $1,000 to almost $20,000 in late 2017, many critics compared it to the dot-com bubble of the late 90s. They both have one crucial parallel:, speculative investments and trading facilitated rapid market gains. A notable proliferation of cryptocurrency projects within said period became apparent and everybody wanted a piece of the action.

However, I cannot help but agree with Paul Eisma, head of trading at XBTO Group who said,

“We are in a market state similar to the post-dotcom boom where there are higher quality projects and companies building for the long term.”

I believe that investors have gone past the frenzy of trying to miss out on the action. The market is going through a developmental phase; one that will drive widespread adoption. Just like the dot-com era gave birth to valuable companies like Amazon and Facebook, cryptocurrencies will usher in a new way of doing business.

Growth Driven By Adoption

Rome was not built in a day and I don’t expect cryptocurrencies to easily unseat or totally replace fiat payment options. The internet and ecommerce did not replace brick-and-mortar businesses. However, it has become apparent that businesses relying solely on an offline customer base are struggling. By inference, businesses that fail to evolve and accept cryptocurrency payments could be losing a large percentage of their market share in the next few decades.

The truth of the matter is that a growing number of potential customers are choosing to pay for goods and services with cryptocurrencies. Many businesses are also starting to show interest in this alternative payment method. Plus, it has become increasingly easy to integrate cryptocurrency as a payment option for goods and services.

Talking about integrating crypto payments for businesses, DAOWallet is facilitating this shift to a crypto-powered payment focus. The company bridges the gap between businesses that want to support new payment options and the growing community of cryptocurrency enthusiasts.

In addition to supporting the most popular crypto coins such as Bitcoin, Ethereum, Litecoin, XRP, and Dash, DAOWallet also supports transactions in fiat via SWIFT and SEPA.

Generating an invoice can be done in a local currency, while customers can pick from different crypto assets to finalize the transaction. Offering this freedom of choice will not only elevate DAOWallet, but everyone who uses it, to a different playing field.

This merchant solution also addresses one of the major hurdles that have prevented wide-scale adoption of cryptocurrencies as a payment option – volatility. Cryptocurrencies can be fairly volatile, making them somewhat unsuitable as a payment option. Such approach allows the automatic conversion of every incoming crypto payment into fiat funds. Alternatively, business owners who wish to store their funds as crypto-assets can opt for the floating feature.

Samsung is another company that is taking crypto to the masses after recently integrating blockchain technology on its flagship phones Galaxy S10 and S20. Many individuals involved in cryptocurrencies are people already familiar with blockchain. But Samsung’s integration means people who don’t know about the tech can easily interact with cryptocurrencies once they purchase the phones.

Samsung is an example of a company that recognizes cryptocurrencies are part of our future. On the phone, you can install the Samsung Blockchain Wallet, where you can add accounts for different cryptocurrencies you would like to use. The app makes sending and receiving crypto super-fast and easy. It can also convert crypto into fiat instantaneously.

Google is also pushing crypto to the masses after recently partnering with some prominent blockchain companies to add Google Pay as a payment option for crypto purchases. The move follows a rapid increase in demand for crypto among retail investors seeking well-recognized fiat on-ramps, making the process safe and secure. P2P exchange Paxful was the first crypto company to add Google Pay as a payment option for its users.

Exchanges Offer Merchants Another Option

Another feature that has made it easy for merchants and individuals to access and convert their tokens easily is the existence of crypto exchanges like OKEx, where they can buy and sell coins on the spot market, a DEX platform, or even use perpetual and futures contracts with up to 100x leverage. Merchants that are scared of volatility can convert payments received in coins like BTC into stablecoins, which are pegged against currencies like the US dollar and maintain a stable price. Or they can opt to cash in their tokens for fiat, which can happen quickly and easily since this platform boasts excellent liquidity.

Another available option is Nominex crypto exchange. The platform allows users to buy and sell crypto coins with less risk involved. All one needs to do is sign up, which is fast and straightforward, and you can trade up to 3 BTC anonymously. Security is also crucial for any currency handling platform, and thus this exchange stores 99% of all funds on cold wallets, guaranteeing you won't be losing your money even if it’s breached. While on the platform, you can even have some fun by participating in its daily contest to win as much as 1000 USDT.

In general, cryptocurrencies are creating a global payment market void of middlemen. In the casino industry, for example, foreigners will not have to deal with currency conversion fees, slow payment clearing, and chargebacks. Not only will this accelerate growth, but it will help transform the industry. Online gambling is growing in popularity, yet it is often held back by archaic payment methods.

Conclusion

Digital payments are opening new doors. Being able to transcend national borders makes cryptocurrencies a preferred payment option for many. With a smartphone and internet connection, money can be made available to friends and family, no matter where they are. More importantly, this can be achieved at a fraction of the cost of normal remittances.

Whilst part of the early excitement of cryptocurrency was the potential of making a lot of money as prices skyrocketed, the industry has become more mature in recent years. Since 2018, the market has begun to stabilize, allowing for a more mature alternative to fiat payment options.

About the author:

Andrey Sergeenkov is a cryptocurrency investor and trader. He covers DeFi, crypto, blockchain, and crowdfunding as an independent journalist.

Image courtesy of CIO



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