Steemit Crypto Academy Contest/S2W2 - Cryptocurrency Adoption by @estyroberts
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Hello and welcome to this week of the cryptoacademy challenge where we are asked to talk about the “Adoption of Cryptocurrencies”by answering a few questions which I would be doing below.
Question
Discuss the adoption of cryptocurrency in the financial market and how businesses can be boosted through cryptocurrency transactions.
Before delving further, understanding the term adoption and financial market would be useful in understanding the question better. Adoption simply refers to the willing acceptance of something or someone that was initially not owned. Financial market refers to a place or area where persons can buy or sell financial assets like fiat, stocks, cryptocurrency etc.
The adoption of cryptocurrency in the financial market began at the birth of the first ever crypto which is the Bitcoin created by an anonymous under the name Satoshi Nakamoto in the year 2009. Over the years the rate of adoption has grown because of the emergence of other crypto this can be seen by looking at the market capitalization, as of this year 2022 the market cap of crypto has grown to 1.17 trillion.
Cryptocurrency adoption in the financial market was mainly accepted because of its decentralized nature, seeing that it is not controlled by any central body and as such would not be subjected the bias of unhealthy regulations.
How businesses can be boosted through the implementation of cryptocurrency transactions.
There are a lot of positive factors through which business can be boosted using crypto transactions they include :-
Fast Transaction - The transaction speed while using cryptocurrency is very fast as it does not require the assistance of middle men like the normal (-fiat). This speed would help business confirm payments of goods and services faster thereby leading to efficient service.
Attract more customers/clients and investors - Everything in this age is going digital and business that incorporates crypto has higher chance of attracting the big whales and also customers that are crypto lovers.
Question
What is your opinion on cryptocurrency being accepted globally for our day-to-day transactions.
If cryptocurrency is accepted globally I would really appreciate it, in my opinion having total control of ones assets and being able to easily make transactions despite location from the comfort of your home with just your device is a big plus.
Also because there won’t be any hidden fees and charges for ATM or wallet maintenance that ends up cutting down user’s money.
Question
Do you think the high volatile nature of the crypto market is a concern to business owners?
Yes, it is going to be a very big concern because with traders psychology affected a coin worth $100 can suddenly be worth $20 and this can result to loss on the side of the business owners.
Buying and selling leads to price instability. And as much as there is a great advantage to cryptocurrency this particular disadvantage can scare business owners.
Question
What other factors are limiting the adoption of cryptocurrency and how can this be solved.
There are a lot of factors that limit the cryptocurrencies adoption, I’ll be listing them and their solutions below.
- High volatility
This is the major reason of the hold up on total adoption of cryptocurrencies one moment is bull and the next it could be bear. Most traders gets confused weather to sell, buy or hold during which ever trend of the market.
Solution - I don’t think there is a perfect solution to this but I feel that if more persons embrace this crypto and fully observe the market knowing the trends to place buy or sell and also not trade with emotions it could be reduced.
- No Means of Key Recovery
Unlike centralized banks and banking apps, the crypto world is basically decentralized and as such there is no option for password recovery, that is in a case someone looses their password that is it.
Solution- if an option to recover password was created that would solve this issue.
Question
Discuss the pros and cons of cryptocurrency adoption by business owners.
PRO’S
★ The transaction fee is low compared to that of the conventional fiat and there is no hidden or unnecessary charge.
★Cryptocurrencies transactions has no limits and are very fast requiring no middle man to undqergo confirmations.
★A business that sold a service for a certain fee using crypto would gain extra revenue when the price of that crypto goes up.
★Attract more customers and investors: Businesses using crypto would likely attract crypto lovers and investors to their business.
CON’S
★The decentralized nature of crypto and anonymity has made it difficult to trace funds to particular owners incase of a mistake.
★The volatile nature of cryptocurrencies can bring loss and debt to a business in the case of a bear.
★The crypto world can be affected by government regulations that can hinder the price and place it in a bear.
Conclusion
As the world is fast developing and changing the normal use of crypto might soon be seen. If the cons are probably addressed and fixed then it would be a great plus to the financial market.
I invite @jammyroberts, @tunes01 and @preshymukel to participate.
You did a fine job sis, cryptocurrency adoption is really going high, I even listened to news which said we africans have adopted more than other continents we are doing well in this aspect.
Yes you are right, thanks for reading and engaging.
No problem, happy Sunday
This is a very educative and beautiful post. As you have rightly mentioned, the innovation of Bitcoin made alot of difference in the Crypto currency world. People really accepted it is evident in the price of Bitcoin now. I still wonder why someone will creat something as good as Bitcoin and the world till date does not know who he is. This is terrible.
Also, the adoption of Bitcoin and other crypto currencies have really boosted business as you mentioned. Attract more clients all over the world.
The biggest hindrance to Crypto adoption is it's volatility. How I wish things were stable
You did a great post my friend..good luck in the contest. You can also engage with me through My link
If the world knows the identity, the price might be affected. And about the Volatility, hopefully things are stable.
Thanks for reading and engaging I have also done the same.
Crypto currency like even the fiat counterpart have their peculiarities , as per up and down strop relator . Known in fiat inflation and deflation often state of concerned . In essence known businesses owner with little or no initial knowledge on crypto world , would be shaky in nature seen coin of $100 suddenly down to $20 known that alone can be huge loss depending. As stated already . Thank for sharing this knowledge.
Yes, you are right. Thanks for reading.
Hello bro, you have explained this topic explicitly by giving your knowledge on the adoption of cryptocurrency in the financial market and how it can be beneficial to business owners
I will also appreciate if cryptocurrency is acceptable globally because it will boost the future of crypto and hence give more value to crypto
Yes I also think high volatility is a concern to business owners because of how the whales control and manipulate the market. So it will be wise for a business owner not to invest what he can't afford to loose
You are correct. Thanks for reading.
P.S- I am Sis (a lady)
Ooh sorry for the inconvenient I may have caused to you my dear
It’s okay.
Like you I think it too and I appreciate it. Globally, if cryptocurrency is adopted as a payment method, it will be much better for all people. I think it will be much more beneficial for the trader. Because his fund will be completely under his control and there will be no third party interference.
Yea, and if volatility will somehow be under control.