Hello everyone, I am happy to participate in the Steemit Crypto Academy Contest Season Two Week Two Homework Task about the adoption of cryptocurrencies and their effect on the business world.

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

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Cryptocurrencies are decentralized digital assets, which are aimed at eliminating third parties in business transactions. They are secured by running on a public ledger known as the blockchain.

The financial crisis some time ago sparked the evolution and the revolution of blockchains, which is to make business transactions transparent and give financial independence to the individual. Bitcoin was the first cryptocurrency evolved in 2009 and was developed by Satoshi Nakamoto, whose identity is unknown to the public.

Financial independence for the individual was worked on to be achieved when bitcoin was evolved and other coins such as ethereum were known to be altcoins.

In addition, there are related benefits and risks of cryptocurrencies in the financial market. There is nothing to be perfect and this is the same for crypto coins as their prices are unstable due to the state of the market, that is, traders' willingness to sell or buy a particular asset.

There are related issues with cryptocurrencies and traders are emotionally affected either positively or negatively. There are instances of the market being bearish or bullish, which is determined by the traders of the crypto asset. Let's discuss the role of cryptocurrencies to the benefit of businesses and to the individual:

• One of the benefits of cryptocurrencies to businesses is transaction speed. Transactions between users are fast and secure. A user, at the end, is able to pay for goods or services within a short period of time without wasting much time waiting for the transaction to be processed.

• Task aviation is another benefit of cryptocurrencies in boosting business. are not regulated by any governmental organization or third-party association for users to pay taxes on their transactions. Consequently, less money is spent on transactions, which therefore boosts the profit margin of traders.

• Business between users is performed easily, irrespective of your location and time. Users can conduct business transactions at their various locations, whether far or near, by simply taking the wallet address of the other. are 24/7 and do not have any operational period where users can not deposit or withdraw from their wallets.

• Another benefit of cryptocurrencies boosting businesses is that they are transparent. Transactions are transparent and accessible to everyone on the blockchain, which helps to eliminate scams or any fraud in transactions.

• Another key point of cryptocurrencies boosting businesses is by estabilshing buyer and seller relationships. There are some kinds of relationships created between buyers and sellers during their business terms. Since no third party is involved, both tend to make profits since they all agreed on their satisfactory business conditions.

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

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The advancement of technology in many fields of work has really affected our lives by furthering the implications of things for us. Accepting cryptocurrencies globally for day-to-day transactions would have really made things easier and would have been a revolution for the financial ecosystem. People around the globe would have benefited from it because we would have been able to carry out transactions easily, free from scams, and with low transaction fees for the users. Accepting cryptocurrencies for day-to-day transactions would have also expanded local businesses globally as they would have been forced to accept cryptocurrency payments.

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

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The crypto market keeps changing from one trend to the other. The volatile nature of the crypto market means traders are taking advantage of those trends to buy or sell to make profits. Business owners would be so worried about the volatile nature of crypto assets since the prices of the assets are unstable and they can make a profit or loss on a transaction.

Business owners need to fully understand the crypto market to trade as they can risk the amount they can afford to lose and make a certain profit to their desire after selling their physical assets.

This volatility is a result of the energy possessed by buyers and sellers of the crypto asset. When the market for that crypto asset is in a bullish trend, the energy possessed by buyers of that crypto asset is higher and greater than that of sellers of that asset, and hence the market is said to be in a bullish trend as shown below.

BTCUSDT

The other side of the bullish trend is the bearish trend, which is where sellers of a particular crypto are greater than buyers of that asset.

BTCUSDT_

In instances where the market for that asset is in the range market phase, that is, prices of the crypto asset are neither bullish nor bearish.

BTCUSDT

Business owners at this time have no problem as they can not make a big loss at this time. Business owners can also avoid losses by accepting their payments through stable coins like USDT.

The volatility is a major concern to business owners as prices are unstable.

For example selling an apartment worth $40,000 is equivalent to 1 BTC. A buyer has paid you 1 bitcoin into your wallet and there is a dip, so your 1 bitcoin is now worth $2000. This indicates you have made a loss of $20,000 and it will take time for you to recover that amount, which has slowed the movement of your business as you are at a loss.

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

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There are many factors hindering the adoption of cryptocurrencies, and some of these factors are:

• One of the factors hindering the adoption of cryptocurrencies is high electricity consumption. The mining of coins by machines requires high power consumption for the operation, which still left many people behind to adopt cryptocurrencies. There are other altcoins for users to mine without following the proof of work consensus mechanism for bitcoin, which consumes high electricity power.

These coins are seen as altcoins, and users do not have an interest in those coins or tokens. There are other sources of generating electricity, such as geothermal, solar, wind, and hydroelectricity, which are other means of powering machines for the mining of coins.

• The volatility of the crypto market is another factor hindering the adoption of cryptocurrencies. The volatility of the crypto market is the continued change of prices of crypto assets. The prices of crypto assets are unstable, and many people do not have the heart to bear the emotions caused by crypto assets.

Many people have liquidated during the current crypto market downturn, which has scared others away from making investments in crypto assets. We can all see the current Luna coin attack, which has resulted in some people committing suicide. must be regulations imposed on crypto projects to manage and maintain their projects at a dip like what we are currently experiencing, as many projects are going to fail at this dip.

• Environmental hazards are also a factor hindering the adoption of cryptocurrencies. There is high power consumption in the mining of certain coins, such as bitcoin. Users are required to highly electrically power their machines in order to participate in solving complex mathematical problems to validate a block, leaving users with no choice but to use other methods of obtaining electrical power that emit toxics harmful to the human body.

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DISCUSS THE PROS AND CONS OF CRYPTOCURRENCY ADOPTION BY BUSINESS OWNERS.

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There are benefits and risks involved for businessmen when adopting cryptocurrencies, and these advantages and disadvantages can not outweigh each other. They are listed below:

PROS

• Transaction speed is one of the advantages of adopting cryptocurrencies. Users are able to perform as many transactions within a short period of time without wasting time or causing delays to their transactions. The transactions through cryptocurrency are validated within a short period, which gives the user the ability to perform more transactions per day.

• Another advantage is the low transaction fee. Transactions performed by using cryptocurrency have a low handle fee as compared to those involving a third party.

• Security is another advantage of adopting cryptocurrencies as a medium of payment to businesses as transactions are well secured and the transactions are transparent as each user can have access to details of their transaction.

• Another advantage is the decentralized nature, as there is a single authority to control it and everything is transparent. This is basically a peer-to-peer network, which makes you have full control over your transactions, unlike the traditional financial system where banks have control over customer funds.

CONS

• One of the disadvantages is the irreversibility of transactions. When transactions are validated, they are irreversible, irrespective of the amount. Transactions are always permanent, and money cannot be retrieved.
  For example, when a coin is sent to the wrong wallet address, that transaction is irreversible.

• Another disadvantage is the high volatility of cryptocurrencies, which is discussed above.

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Conclusion

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Cryptocurrency adoption would be a financial system revolution, as it would help to eliminate corruption in our business transactions and help local businesses go global.

I have really learnt a lot about the need for businesses to adopt cryptocurrecies, but I believe when some challenges such as the high consumption of power and the highly volatile nature of the crypto market are addressed, businesses will adopt it as a medium of payment.

I hereby invite @analem, @roma078 and @tymestwo77 to participate in this engagement challenge.