Steemit Crypto Academy Contest / S2W2 – Cryptocurrency Adoption by @ebuahsang1

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Hello fellow steemians, Good day or whatever time you are reading this post. I hope by God’s grace we are all doing awesome. This is the second week of the Season 2 of Steemit Engagement Challenge. I am here to participate and give my opinion Crypto currency adoption. I hope you have a great time reading.

DISCUSS THE ADOPTION OF CRYPTOCURRENCY IN THE FINANCIAL MARKET AND HOW BUSINESSES CAN BE BOOSTED THROUGH CRYPTO CURRENCY TRANSACTIONS.

Before we dive into the adoption of cryptocurrency into the financial market, it is first of all important to have some background into crypto currency. Crypto currency can be defined as digital money. You know before the 2008, the world had gone through different stages of money from Barter, to precious metal to gold and now fiat money.

But in 2009, digital currency was first introduce by Satoshi Nakamoto. It is unclear to the world as of now the real identity of this Satoshi but his innovation of Bitcoin which is the first crypto currency changed the financial world completely. A little while after the creation of Bitcoin, it success was huge as the world realized and increase use of digital currency. This success then became the milestone used by other creators and innovators who started created other crypto currencies.

As of the time of this post, there are over 10,000 cryptocurrencies in the world. Whether we like it or not, crypto currency has become a major part in the financial market mainly due to its biggest characteristic which is Decentralization. Crypto currency main objective is to eliminate the middle man that was involve in traditional financial market. This particular characteristic has been the main boost behind the adoption of cryptocurrency in the world.

Major businesses and organizations in the world now use cryptocurrency as a means of payment. Other organization like Tesla hold very large sum of their reserves as crypto currency. Also, cryptocurrency is being traded in the financial markets. Banks and organizations like Binance, Poliniex offer small traders and investors the opportunity to trade cryptocurrency. It is without doubt that the crypto market forms a huge part of the financial markets.

HOW BUSINESSES CAN BE BOOSTED THROUGH CRYPTO CURRENCY TRANSACTIONS.

As I earlier mentioned, crypto currency has been widely adopted into the financial market. This is because there are imminent benefits that can be gotten from using financial transaction. Crypto currency can boost business in the following ways

1. Eliminate middleman. The traditional financial system was difficult to use because of administrative bottlenecks. With cryptocurrency, there are no administrative huddles to financial transactions and this can boost a business.

2. No geographical limitations. Another limitation of traditional or fait money is that it has limitation. Naira can only be used in Nigeria as their currency, CAD (Canadian dollar) in Canada and so on. But crypto currency has no geographical bounds. It is used worldwide and by every business since its digital and so by using crypto currency a business can increase its sale and income by selling worldwide.

3. Fast and easy. Also, cryptocurrency is very fast and easy to use. It can be owned by any man and therefore using cryptocurrency will definitely boost a business.

WHAT IS YOUR OPINION ON CRYPTOCURRENCY BEING ACCEPTED GLOBALLY FOR OUR DAY-TO-DAY TRANSACTIONS?

In my opinion, I do believe that accepting cryptocurrency as a medium of payment worldwide for day to day transaction is going to be a good idea. As I did explain earlier in my introduction money has passed through different stages in the world from stones to precious metal and now cryptocurrency. The evolution of money is one thing that is assured and I do think changed cannot be changed.

Though cryptocurrency is facing huge resistance in the world, I do believe strongly that it is our way forward. Some countries have already accepted and legalize bitcoin as a legal tender while other countries like Nigeria are already creating their own cryptocurrency. I will be giving my reasons to why I think it’s a good idea below.

1. Elimination of middleman. As I earlier stated, tradition economy had the banks which serves as middlemen and limiting financial transactions. Crypto currency usage will eliminate the middle man in financial transactions.
2. Cheap and fast transaction. If the world accepts cryptocurrency in day to day transactions, it will be less expensive to carry out transaction and very fast. The elimination of the middle man will reduce expenses that were paid to banks or other financial organizations.
3. Boost global transactions. As I did mention, cryptocurrency has no geographical limitation and as such, has no limitation in the business world. This will increase the number of transactions globally.

However, there is nothing in this life without a side effect or negative point and so there is just one effect that will arrive as a result of using cryptocurrency worldwide. Increase in the criminal transactions. The major negative effect of cryptocurrency is that it will increase the crime wave in the financial world like money laundry etc. Since it will be difficult to monitor financial transaction and the government has no means of regulating financial transactions.
However, it is a for this reason that other countries like Ecuador are legalizing it to get ahead of this threat.

DO YOU THINK THE HIGH VOLATILE NATURE OF THE CRYPTO MARKET IS A CONCERN TO BUSINESS OWNERS? DISCUSS.

My honest opinion to this question is a big fat Yes. The volatile nature of crypto currency and the crypto market is a big issue in why business owners are lagging behind in adopting it as a medium of exchange. One of the biggest characteristics of a good currency is that it should be a stable and therefore a store of value. Money has to be stable to serve as a store of value, a business man wants to be assured that if he holds 10,000 USD today, it is the same 10,000 USD next month and should be worth the same number of goods as before. But this is not the case with the crypto market, prices in the market fluctuates a lot and it is difficult to know if prices will be stable in the long run. This is a difficulties and big concern in the market.Let us just look at the case of LUNA(terra luna blockchain).

The instability in the market caused stake holders and business persons a lot of loss in the market.

However, this is not a big issue as crypto currency has provided other means like Stable coins that are pegged to gold or fiat currencies like USDT. These stable coins can be used by business persons to carry out business transactions.

WHAT OTHER FACTORS ARE CURRENTLY LIMITING THE ADOPTION OF CRYPTOCURRENCY AND HOW CAN THIS BE SOLVED.

Volatility as we discussed above is a factor hindering the adoption of cryptocurrency and it is just one as there are other factors. I will discuss them below.

• GOVERNMENT.
  One of the biggest hindrance to the adoption of cryptocurrency in the world now is the government. The various government of different countries are strongly rejecting cryptocurrency. Take the case of China. The government of china has completely banned the mining of bitcoin in the country. This has served as a factor limiting adoption of cryptocurrency. The main reason behind this is because the government has no control over.

SOLUTION.
I think the way forward is to get the government engage and involve in cryptocurrency. It will be great for other government to adopt cryptocurrency. Early adoption by government will help them to regulate it and this will be great.

• FEAR and IGNORANCE.

Another big issue behind the slow adoption of crypto currency is fear. Fear is an aspect that comes with change. Each time there is change, people fear and because of fear a lot of business persons don’t want to get involve. The uncertainty of what the future holds with cryptocurrency and so fear is a big hindrance.

Also, ignorance is a big factor that limits adoption especially in Africa and my country Cameroon. The coming of Ponzi schemes like Bitclub and Bitworld. People in my area still believe that Bitcoin is a scam and thus don’t want anything to do with it. Ignorance is a really a big hindrance to adoption.

SOLUTION

Education. The main way to solve the problem of fear and ignorance is to go about educating people about the functioning and advantages of crypto currency. Initiatives like the steemit crypto academy are good avenues and I have learned so much about cryptocurrencies.

• HARMFUL TO THE ENVIRONMENT.

Another factor limiting the adoption of cryptocurrency is the harmful effect it has on the environment. For example, the mining of bitcoin requires heavy and expensive machineries that consumes a lot of electricity and emits a lot of carbon. This is one of the main reason bitcoin was banned in china and why Elon musk rejected it.

SOLUTION.

Other medium has been created to make mining easy. I think new strategies should be developed to mine bitcoin. This will reduce the harmful effect on the climate.

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

PROS.

• SPEED. Crypto currency as earlier stated is very fast. Adoption of crypto currency in a business will therefore mean increase speed of financial transaction
• SECURITY. Another huge advantage of using crypto currency in a business is security. Blockchain technology is the most secure technology in the world now and so adopting cryptocurrency will mean security increase. - -
• GLOBILIZATION. If a business owner adopts the use of cryptocurrency as a means of payment, this will like increase the clientele and customer base to a global front since it is not limited by any geographical area.
• GOVERNMENT CONTROL. Another advantage of adopting cryptocurrency is that it will help the business owners to avoid control by the government. Most times these control hinders the growth of business.

CONS.

• HIGH VOLATILITY. One of the biggest hindrance and disadvantage of cryptocurrency is volatility. The high fluctuation rate of crypto currency is a hindrance to the adoption. For example, business owners that held LUNA before the crash suffered huge losses.

CONCLUSION.

Crypto currency has revolutionized the financial world. it has brought new dimensions of investment and new things. As we can see from the post, the cryptocurrency has tremendous advantage but yet it still faces adoption barriers. I do believe that in the nearest future most business owners and government will fully accept it. Cryptocurrency is the future of the world.

Thank you for reading.