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

Hello everyone and a warm welcome to SCA season 2 week 2

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

Cryptocurrencies have been around since 2009 and has since then been doing well as a payment system but with extreme limitations, we can date back the first ever transaction to be carried out on the cryptocurrencies ever in 2010 when Laszlo purchased 2 Pizzas for 10,000 Bitcoin which is recorded to be the first ever commercial transaction carried out in the cryptocurrency world, this means that the world has been gradually adopting cryptocurrencies as a method of payment ever since the beginning of cryptocurrency launch.
Cryptocurrencies are decentralized and are backed by blockchain technology which is a type of DLT, the cryptocurrencies are secured by cryptographic hashes which ensures security of an individuals asset, the rate at which people will adopt is partially dependent on how secure it is, no one would want to put his finance at risk of being hacked or stolen.
When cryptocurrencies first started out it started with a total market cap of million, eventually moved to billions after a few years, currently, we have seen that the total market cap of cryptocurrencies is around 1 Trillion $ and this information is sufficient enough to inform us of the gradual growth in the adaptation of cryptocurrencies globally,from the global crypto index platform we can see that cryptocurrency has with recent data touched every continent in the world and is still growing on a daily basis
In recent times as more information about cryptocurrencies begins to hit the surface, we have seen new incentives being put in place to accommodate cryptocurrencies, governments are creating policies to accommodate this method of payment, and merchants and top companies like tesla are now accepting cryptocurrencies as a method of payment for there goods. With more information about cryptocurrency being put out or being taught on a daily basis the rate of cryptocurrency adoption would have increased drastically on a day-to-day purchase level
The world is gradually moving towards a digital era where practically everything is becoming digitalized, from booking flight to connecting with individuals all around the world, cryptocurrency is already a step into the future as it already has digitalized finance sector, adoption of cryptocurrency would mean accepting it as a global means of payment, business owners on this end would be among the most beneficial set when this measure has been adopted for reasons like

TOTAL CONTROL
With cryptocurrency one has zero worries about getting his funds frozen or restricted, cryptocurrency leaves its owner 100% in charge of his assets
BORDERLESS
We know how tedious it is to send funds to other parts of the country, if one wants to purchase items, he sometimes has to go to the bank and fill forms, especially large sums, with cryptocurrency no matter how far or near all you need is a wallet address
INSTANT PAYMENT/RECEIPT
When one uses cryptocurrency depending on the blockchain’s scalability one can make payment ms which can be confirmed almost instantly either as receiver or as sender, that way a lot of business can be carried out without delay
PRIVACY
Business people can transact with each other without necessarily being monitored by anyone, transaction carried out in the cryptocurrency space are kept ananymous as no personal information is disclosed
ATTRACTS CUSTOMERS
As the only cryptocurrency-accepting shop in your field most people who own wallets and prefer transacting with its will always prefer to make purchases from you since they can pay with cryptocurrency hence you attract more customers
TRANSPARENCY
Cryptocurrency uses a decentralized ledger which implies that all transactions are broadcasted publicly, hence each transaction can be easily approved after they have been carried out from places like block explorers etc

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

With the technological advancement we are currently experiencing I think it is safe to say we are gradually moving to an era where most of our cash won’t be carried around physically, more and more centralized way of making payments are being established on a daily basis and being merged to accept crypto.
Our daily transactions like paying gas bill for our cars or buying bus pass with cryptocurrency would be great and will save a lot of individuals from hassles of going to bank etc, if cryptocurrency is adopted world wide I believe it will revolutionize the entire financial world. Adopting cryptocurrency globally in my opinion would be a big leap into the future of finances
The limitation we often face like the daily limit on transactions, can’t send to someone in a very distant country without proper paperwork, amount too high or too low to be sent, etc would all be eliminated, all these are factors that make our current payment system frustrating, with cryptocurrency all these problems would have are taken care of so in my opinion cryptocurrency being adopted globally would save a lot of people from these needless frustrations

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

MOST DEFINITELY, I believe as a business owner who accepts cryptocurrency as a method of payment the volatility of cryptocurrency would affect you directly because as the market is volatile, payments received for goods sold would not be fluctuate and if it's not in your favor you would lose money from its volatility
Take for instance a purchase was made of 2 BTCs and payment was in BTC which was at the time at a value of 40000$/BTC, on closing for the day and trying to balance the account you realized BTC has fallen to a new value of 35,000$, now assuming your interest from the sale was a total to 5,000 this would automatically imply that you have lost your profit of 5,000$ alongside your capital of 5,000.
As a businessman profit means everything to you, and if your profit and a part of your capital is being constantly tempered I don't think your business would survive for a very long time, So YES i believe the volatility of cryptocurrency would very much affect a businessman who uses crypto as a method of payment.

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

VOLATILTY

The volatility of cryptocurrency is one of the major factor limiting the adoption of cryptocurrencies, the volatility of cryptocurrency is often influenced by demand and supply and its very common we see crypto rise or fall significantly by a lot, this can often discourage people from adopting it as your investment can drop significantly overnight.

SOLUTIONThe volatility of cryptocurrency can be avoided unnecarily if users who are not in to crypto for profit or trade deal with only stable coins, stable coins are fiat mirrored tokens, the volatility of the crypto market do not really affect these stable coins.

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NEWS

Most times when cryptocurrencies are mentioned they are placed synonymously with fraudulent activities, it is no secret that because of it attachment-free most fraudsters use these mediums to store stolen funds or make purchases, especially in my country nigeria.

SOLUTION A way to checkmate fraudulent activities should be put in place, no need for divulging sensitive data just create a way of knowing what people do for a living or how much asset should be expected in the wallet this way a 18 Y old who is jobless wont be hold billions unquestioned

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LIMITED CRYPTOCURRENCY INFORMATION

It’s no news that most people are yet to even know what cryptocurrency is talk more of embracing it, we have very limited resources via which one can learn about cryptocurrency currently it is just limited to just the internet.

SOLUTION New incentives should be introduced via which cryptocurrency education can be giving out freely, things like door to door campaigns or advertisements on radio and television to teach people about the benefit of cryptocurrency

Discuss the Pros and Cons of cryptocurrency adoption by business owners.

Volatility

Now this might not seem like an advantage but it is, for those who are very familiar with the habitual fluctuations of cryptocurrency, they can possibly predict the movement of cryptocurrency and buy or sell accordingly with its volatility, and business owners can get paid in cryptocurrency when the price is low and by the time they are ready to settle account the price would have risen given them even more profit

NO GOVERNMENT REGULATIONS

With cryptocurrency the user is often free from policies set by its government, as cryptocurrency is decentralized no form of authority to limit any user or place restrictions on anyone, all users are equal to with no upper hand whatsoever. So with cryptocurrency users are free to operate without bothering about new governmental policies. with this in mind business owners are not worried of having their transaction frozen or having there business delayed due to new policies from the government

TRANSPARENCY

In cryptocurrency users have their transactions published to a central distributed ledger hence its very difficult to cheat cause transactions can easily be confirmed in the public Distributed ledger, when a business man is paid he can easily confirm the transaction instantly by checking block explorer

ANONYMITY

In the cryptocurrency world, a user is not required to divulge any sensitive data like name or address before he can participate in the blockchain hence everyone in the blockchain is completely unknown, business owners can make purchases free from monitoring parties

CONS

IRREVERSIBLE

Cryptocurrency when sent can not be undone , if a business owner or a customer omits an address and ends up sending it to the wrong address there is no way he is going to get his assets back

RISK OF PERMANENT LOSS

Each user is appointed a unique and personal keys to access his funds, if these keys are loss one will permanently loose his assets, as a business man if you lost your wallet with all your business capital that can lead to bankruptcy

VOLATILITY

As this is an advantage it can also be a very big disadvantage, business owners can loose profit from cryptocurrency’s volatility and end up with loss at the end of a business day

ANONYMITY

As a business owner, if you are being payed in cryptocurrency you will have no additional data on the customer, so if the user is buying or selling with stolen asset, there is no way to trace the buyer back.

CONCLUSION

In conclusion cryptocurrency adoption will help give the finance sector a bit of an edge as the world is gradually moving to a technological era, I believe the adoption of cryptocurrency would help save and grow a lot of businesses and save a lot of businesses from collapsing or increasing customer base