Steemit Crypto Academy Contest / S2W2 – Cryptocurrency Adoption || by @josantos

Greetings to everyone at the steemit home and welcome to week 2 of the steemit engagement challenge season 2. Today I will be joining other steemians all over the world to write my view on the contest given this week in the steemit crypto academy. This week the contest demands to know our view on the topic of Cryptocurrency Adoption.

Cryptocurrency adoption can be seen as the acceptance of the crypto asset by the financial market as a means of exchange of goods and services. Financial institutions over the years have made use of conventional currency in their day-to-day trading until the early days of 2009 when cryptocurrency came into existence to serve as an alternative means of exchange considering the limitation that is seen with the conventional currency.

As of this period, only a few persons accepted the use of this currency as an alternative to conventional currency but as time passes, more people started showing interest in the currency and more of this crypto asset was created too. We can see the tremendous acceptance of the crypto asset via the market cap as it had an increase from $800B to $1.135 Trillion between the interval of creation which is 2009 till date.

Statistics have proven that people who tend to accept cryptocurrency as a means of exchange are more progressive than those who don't accept it. This is true because any business that has various means of payment always attracts more customers than those that have just one means of payment. The adoption of cryptocurrencies is also seen by many notable companies such as Tesla and the likes of them.

The adoption of cryptocurrencies in the financial world is going to be very possible as we have seen a very huge success that the innovation has made just within these few years. There is no doubt about cryptocurrency taking over the financial market sooner because it is an innovation and it will take time before it will be completely accepted. Recall that the conventional currency we use in our countries today where initial not there but most often we go by barter trading, but as time goes by the barter pattern has been completely replaced with conventional currency.

The financial market will completely adopt the use of cryptocurrencies very soon because it will go a long way in ensuring that all the lapses associated with the conventional currencies are kept in check. You will also agree with me that it will go a long way in boosting business. Let's consider how business can be boosted if cryptocurrency is adopted by business owners.

a. Fast transaction: The transaction of crypto will help to boost business because they are fast and can get to the other party within a split of seconds. With this, the time-consuming of carrying out a transaction no matter the distance and the amount will be taken into total control.

b. Generally accepted by all: Presently, we are aware that bitcoin is the same all over the world and the same applies to every other cryptocurrency for that reason, it is generally accepted hence if two parties want to carry out a transaction, they do it effectively and efficiently. E.g the cost of an HP Computer from China cost 200 steem, you don't need to send more than you are all sending the 200 steem as its value is the same.

c. Transparent: Crypto transactions are very transparent and hence it will be of benefit to business owners as they will all see the transaction carried out because it can not be manipulated. This is not the same with conventional currencies because those in charge of our bank can manipulate some transactions.

d. Availability and absence of limit: Another important way that the crypto asset is geared to boost crypto transactions in business is the availability of the asset as well as the absence of transaction limit. In our conventional banks, there are some times you wish to withdraw a huge sum of money for business but you will be told you can't withdraw this amount within a day or that such amount is not available. But in the case of crypto transactions, you can send as much as possible at any point in time.

Currently, we are already seeing a lot of improvement in the financial sector via the invention of new and modern technology. Today we have seen cashless transactions and internet banking expanding more coast. With all this achievement in view, there is no iota of doubt that in no distance time, cryptocurrency too will be accepted globally to be used for our day-to-day transactions.

In my opinion, for cryptocurrency to be accepted globally for day-to-day transactions, it's going to be a very good idea because it will go a long way in promoting unity in the world since we all have to accept the same token. More also in the aspect of limitation of the amount of transaction, cost fees of the transaction as we as the delay in the transaction will completely be eliminated.

This will break the borders in the financial market because there will no longer be a difference when we want to buy or sell goods and services. This will go a long way in stabilizing the economy of the world at large. Fear of transaction will no longer be seen since every transaction is recorded in the case block and this block as we know can not be edited.

The answer to this question is yes. The reason I said this is because we all know that one of the attributes or nature of cryptocurrency is its volatile nature. This is a great concern for business owners as it sometimes comes in their favour and other times goes against their favour.

Let's take for an example a businessman who sells computer systems at the rate of 20 steem for each one and the equivalent of 20 steem at the period of sale is about $10. After about 3 hours of the sale, the price of steem increased and its equivalent in dollars became $15. This is a clear indication that within 3 hours the business owner has made a profit of $5.

In the same way, the tendency to loosing is also seen by the business owner if the price had dropped from the equivalent of $10 to $5 within that period you will agree with me that the business owner has also lost about $5 within the very little space of time. This high volatility as we can see even in the market today has affected many businesses and most of which have lost a lot of investment just within this period.

a. Volatility: This is the major factor as far as cryptocurrency adoption limitation is concerned. The high volatility nature of the crypto market has made its adoption almost impossible by business owners till this time.

The only solution to volatility is to give a range within which a crypto asset will move up or down. This will go a long way in giving confidence to the users as they have a range that they look out for knowing full well that the asset will never move below or above the range given.

b. Security: Another major fact limiting the adoption of cryptocurrency is security. The word security covers many aspects and one of these aspects is in the case of account recovery. Once you lose your keys you have lost your asset.

The only way to solve this issue is to have a backup means provided such that keys of account can be made recoverable. Take for instance someone with 1000BTC in his or her wallet who misplaced the keys and then has no way to recover them, it will completely crash the person. So a recovery option should be made to combat this type of security issue.

c. Regulation: This is yet another factor limiting the adoption of cryptocurrencies in the financial market. The government of our various countries give certain rules that stop the adoption of the currencies. In Nigeria last year or thereabout we heard that cryptocurrency has been banned by the government and this is because a lot of users are now keeping their money in form of assets which makes them not pay tax. In other countries like India, a very large amount is placed as a tax on those who trade cryptocurrency and that also scares people aware of the adoption.

The only way to solve this issue is to ensure that some of these rules are made by our government and undone so that people will be free without fear of too much tax or even banding of the crypto asset as in the case of the Nigeria government.

a. One of the major advantages of cryptocurrencies trading is that there is no limit to which one can trade I.e one can perform as many trades as possible within a given time

b. Another important advantage is the speed of the transaction. Crypto transaction has proven to be very fast and that is a plus to it.

c. No third party between the buyer and the seller of an asset hence the transaction process will be faster since, after an agreement between both parties, no one will have to hold the transaction any longer.

d. Charges for transactions using cryptocurrencies are very little and for that reason sometimes people don't even notice it.

a. One of the major disadvantages of trading cryptocurrencies is the volatility involved in the asset. People can lose a lot of money from transacting crypto assets.

b. Keys of assets if misplaced can not be recovered and that leads to complete loss of assets in the wallet of the user. You will be seeing your asset but you can't transfer it.

c. Irreversible nature of the crypto assets is another strong disadvantage because a lot of funds have been lost due to this factor. If you send an asset to the wrong address, then you have the risk of losing the asset completely because sometimes you won't even know who you want to be since it uses only the address.

d. Because of its online nature, it is prone to be hacked by different cyber gurus who are looking for any slide opportunity to steal your funds.

The adoption of cryptocurrency as a means of exchange globally will change a lot of things and this includes the world economy. Though its adoption is still not globally, on daily basis more and more people accept it. This is a sign that in no distance time it will be generally accepted by all. I want to call on @yakspeace, @jasminemary and @dave-hanny to also participate in this contest.