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The adoption of cryptocurrency in the financial markets.

Cryptocurrencies are indisputably credible assets that have the viable potential in changing the phase of businesses and financial markets at large. Although it has a strong disdain by most governments and regions because of its unfavorable nature in that no individual holder of the asset remunerates any government probably for holding or trading with it.

Nevertheless, most governments like Central African Republic, El Salvador etc has adopted it as a legal tender while most businesses like Home Depot, PayPal, Microsoft etc have also adopted it for diverse transactional purposes and a wider range of businesses are also apt adopting it but for the cause of certain governmental and geographical barricades they might routinely be dealing in it as an illegal exhibit.

Moreover, we can attest to the fact that those businesses that have adopted it are really enjoying its dividends like; transparency, accountability, immutability, accuracy etc.

However, It is also paramount to note that the inclusion or adoption of cryptocurrencies as a modus-operandi in settling financial transactions have grealy mutated business dealings positively.

How Cryptocurrency can Positively Boost Business Transactions.

There are diverse means through which businesses can be boosted using cryptocurrency transactions and these are discussed below.

• Transparency and Zero risk of error

Many Bank managers and workers are not worthy of trust. Majority of them had cyphoned their customer's money because of the manual and centralized process their system assumes. For instance, many banks have embezzled the money of their late customers whose valid and convincing evidence can not be provided by their approved next of kin, but against such odd is the need for transacting using cryptocurrencies as it zeroes the risk of error and fraudulent practices and streamlines every transaction as it all occurred within any the frame.

• Reduction in the risk of conveying a high volume of money.

We know that transactions that are worth a reasonable amount of money are carried out each day, and this may demand the transfer of these monies through bullion vans or briefcases and this also involves a high level of risk in conveying them.
On the contrary, to avert most risks like armed robbery and street maneuver, there is the need in adopting cryptocurrency by businesses as to mitigate against all these risks and also boost the level of security in their dealings.

• Improved transactional approach.

Many businesses have different transactional approaches for instance, most of them use the point-of-sale (POS) medium, others also accept payment through bank transfers and cheques. These mediums aren't without Achilles heel, as time of confirmation of a particular transaction by the middle party (banks) may differ from the time it was initiated by the transacting cartels.

Hence, there are periods when banks do decline one's transaction for instance, while using OTP due to geographical rules and this may cause a delay and restriction in business dealings with different parties. but the application of the crypto payment medium will help in extinguishing the delay in business transactions, as dealing between parties are confirmed by a network within a streamlined time period unless in cases where the applied network was congested.

My opinion on the global acceptance of cryptocurrency for intraday activities

In my opinion, it needs a little education from different parties, though most people know about it but everyone does not understand how it works properly.

The masses and government agencies have to be educated on the advantages and downsides of how it functions, and also to be properly guided on how to go about it because the fact that direct taxes are not imposed on its dealers does not mean that the masses who doesn't know much about it and government in general does not benefit from it. For instance, if I should make sells of my crypto, I will purchases some items from the old woman that is selling in kiosk along my street who doesn't know anything about crypto, I will also foot some other of my bills like electric bill which goes directly to the purse of my government that is kicking against crypto.

I believe that when the government and the masses go through a perfect auspices, crypto will be accepted globally and the increasing rate of fraud and over-dependence on natural resources which do not have the likelihood of perpetual longevity will stop. For instance a country that does not have a favorable balance of payment can decide to improve their balance of payment through investment in cryptocurrencies and such fact can not be dissipated as they turn to crypto whales.

The case study of the highly volatile nature of the crypto market to business owners.

I trust that what every crypto dealer needs is simply an understanding of how the system works.
As good as dealing in crypto currencies are, it is also important to employ specialists who will constantly track the very asset the business is being paid with as to ascertain when the market is bearish or bullish.

Whenever the market is bullish, the firms or businesses can accept both crypto currencies and USD pegged currencies then when the market goes bearish, they can accept tokens and coins like USDT, USDC etc to wittily mitigate against loss.

Finally, most businesses are greatly concerned about the increased rate of volatility in cryptocurrencies than they should because of the lack of understanding of how it works.

Factors limiting the adoption of cryptocurrency and how it can be resolved.

There are many factors that limit the adoption of this concept and they are not limited to the elucidations below which I'll also be merging with its possible solution.

• High volatility rate

The most obvious reason why cryptocurrency has not been adopted is majorly the rate at which it fluctuates. For most people, they don't know when exactly to buy and when to sell their crypto due to the high volatility rate it exerts and this has posed a great problem as to adopting the crypto currency invention.

Every concept has a routine on how it works and crypto currency is not exempted. For instance, the stock market has its modus-operandi likewise the security market. High rate of volatility is actually what makes up this innovation as the system is inseparable from volatility.
Nevertheless, the rate of volatility can be reduced while trading with a longer time frame than shorter time frames, to properly ascertain the true trend of the asset.

• Absence of Government Control

It is really obvious that no region or government controls cryptocurrency and such has given no direct credit to any government which is a more reason why it had not been adopted because it lacks the inherent nature of being controlled. For instance, the fiscal and monetary policies of different governments are carefully planned every year but in the case of cryptocurrencies, there is no possible means of absolutely controlling it in terms of the quantity that should be traded and the possible revenue it should generate for the government per year.

But I would suggest that different governments should set up their own secured exchanges which could either be centralized or decentralized.
Now it would be easier to estimate the total supplies and trade of cryptocurrencies and possible revenue can be directly generated from trades performed in those government established crypto exchanges.

The pros in adoption of cryptocurrencies by different businesses.

• Increased revenue.

Many businesses that adopted this medium as one of its medium of payment have always ripped its benefits. For example, a business that accepted a token while its price was down and after some period the same token goes high in price, it has increased the revenue of such a business without selling further product from its stock.

• More customer attraction:

Most businesses only accept normal regional fiat and this has limited their range and medium of business dealings and number of patronisers.

On the contrary, a business that further adopts the cryptocurrency medium as one of its means of payment has indisputably increased the possible number of customers that normally patronize it.

• Reduced rate of inflation.

Most businesses outside the US do not have direct access to the US dollar currency which is the only major currency that is pegged to every other currency in the world, and this has affected majority of them as their regional currency deflates against the dollar malignantly but against this, most businesses that have adopted the cryptocurrency is always disposed to the stable coin as they can easily swap or short their earned crypto when there is a strong downtrend.

• Reduced risk of damages and loss of assets.

While balancing an account for instance, we do come across balance in the Bank and withdrawal for office use. Nevertheless it is believed that most businesses do keep money for office or company use, and these monies can face certain risk of damage by infamy and hence plunge the business into a great loss.

Contrarily, most businesses that adopted the crypto currency as one of its medium of business dealings have always been on a safer side because their assets seem intangible because of its non palpable nature as everything is done through virtual means.

The cons in adoption of cryptocurrencies by different businesses.

• Freezing of accounts in different regions.

The embargo placed on the trade of cryptocurrency by different governments has malignated the adoption of this medium and hence caused great damage to businesses that normally trades it.

Using Nigeria for instance, many companies that treded the crypto currency had their accounts freezed because of government restrictions and this has also compelled business dealers to go into P2P trading to avert further freezing of accounts caught dealing in crypto currencies.

• Zero knowledge of how it works.

The formula on the working of cryptocurrency is so vast that a particular sentiment or analysis can not be used in generalizing its workability, and many people have fallen victim as they major in one approach in determining the possible ideas that affect the trend of cryptos in general.

Nevertheless, good knowledge of the volatile nature of cryptocurrencies can help in mitigating against losses and also increase the possible adoption of the concept.

• Loss of assets

There has never been any one that has not lost money in cryptocurrency. Nevertheless, most businesses are scared of losing their money because of the high rate of volatility in the said invention as they may not always be there to track the possible trend of the market as to either leave their asset as crypto token or stable coins and this has been one of the major dread in the adoption of cryptocurrency by different businesses.

Conclusion

The issue of adopting cryptocurrency is not necessarily universal but more governmental an upheaval. However since everyone can trade and hold crypto in his region despite any restriction by their government, this means that its adoption is less of a general problem but a further government adoption of the currency will help in boosting its acceptability and stability.

Finally every business needs to first understand how this works before dealing with it, as to properly mitigate against losses. Thanks for going through my post.