Crypto Academy Contest / S2W2 – Cryptocurrency Adoption by @phlexygee

Hello scholars, this week marks the second week of the season-2 steemit cryptoacademy engagement challenge, and here comes presentation on the adoption of cryptocurrency.

Before that, I made much elaborations on the overview of cryptocurrency last week, so with this task I will be somehow straightforward.

Enjoy 🤗

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

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Cryptocurrency was created with a reasonable goal to bring democratization and innovations into the financial sector by making intermediaries null, and of course, such goals have been accomplished since its introduction.
Cryptocurrency evolves around the financial market, and it has been adopted or embraced by well renowned institutions and countries such as Paypal, Microsoft, Tesla, USA and El Salvador, since its introduction, whiles others are working towards its adoption. With this, I may say cryptocurrency has gained momentum over the years.

The adoption of cryptocurrency in the financial market has helped to solved most pressing challenges that pre-existed in the financial sector, such as double spending, and issues related to intermediaries when accessing financial services.
Many people and companies have gained some level of financial freedom from cryptocurrency, due to its adoption in the financial sector, and that has positively contributed to the total world economy.

The positive impact of the adoption of cryptocurrency in the financial sector also comes with some negative effects in the financial market as well, such as irreversible wrong transactions, malicious attacks, asset devaluation due to its extreme volatile nature, and market crash, which can't be underestimated.

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How Businesses Can Be Boosted Through Cryptocurrency Transactions

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There are several ways businesses can be boosted through crypto transactions, and I will be pondering on them below.

Swift transactions; businesses that adopt cryptocurrencies have fast mode of transactions over the ones that do not, simply because there is no need for third party services in initiating transactions, therefore increasing the rate of processing transactions.

The eradication of double spending; sometimes businesses go to bankrupt or retrogress due to double spending, with cryptocurrency, this issue is solved by the blockchain technology.
Cryptocurrency transactions only operate on blockchain, and the blockchain technology ensures transparency and security with its distributed ledger. Businesses can therefore be boosted by tackling double spending with the transparency and immutability feature of the blockchain technology.

Profits from bull markets; the extreme volatile nature of cryptocurrencies can contribute positively to the growth of businesses. This occurs when transactions take place in bear markets, and there comes a later bullish reversal after transactions have been completed. Businesses will then make more profits as the price of the underlying cryptocurrency increases.

Easy and 24/7 financial access by businesses and their respective customers; cryptocurrency transactions have no holidays or working hours, therefore their activities will be boosted with their unlimited access to financial services.

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

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I think cryptocurrency is the new world order, as well as the future of finance, and therefore it is will be a very good initiative for cryptocurrency to be accepted globally for our daily transactions.
Most of us know the relevant unique features of cryptocurrency, such as decentralized, volatile, secured, transparent and fast transactions, and with these, I think the value of the crypto market will increase, whereby there will be no limitations to financial services. Businesses and people will enjoy swift transactions whiles they escape the issue of double spending.

It will ensure borderless transactions, because people will be able to trade variety of goods and services around the world, as the global market will expand.

Again, the acceptance of cryptocurrency globally for our day to day transactions will help, boost the economy of many countries, as there will be smooth, swift, secured, and limitless transactions.
Most people will escape poverty, whiles others would be doomed due its extreme volatile nature.

But in all, I submit that the global acceptance of cryptocurrency transactions will incur more good than harm, so it will be a good experience.

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

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Of course, the volatile nature of the crypto market is really a concern to business owners, simply because it has the tendency to boost their businesses as well as retrogress or damage their businesses.

Any business that adopts or accepts cryptocurrency looks forward to make extra profit after transactions at the long run, but the idea sometimes goes against the plan, leaving such businesses in extreme loss instead of profits, so the high volatile nature of the crypto market is actually a concern to business owners who are crypto enthusiasts.
Some business owners become scared to accept cryptocurrency as a medium of exchange due to its high volatile nature, whiles others take the risk and become filthy rich with their businesses.

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

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Ignorance; most people, business owners, institutions and countries are ignorant of the inner workings of cryptocurrency. They know less about crypto, therefore they see it to be a thing with no future and tangible use cases, meanwhile that isn't the issue.

Such problem can be solved through private and publication education on cryptocurrencies. In fact, crypto can be incorporated into school curriculums, whereby people will learn about it in schools in order to gain the relevant knowledge of the currency.

Volatility; as earlier mentioned, the extreme volatile nature of cryptocurrency, makes it unfriendly and unpleasant for many people and businesses. People are afraid to lose money, meanwhile not willing to take the risk.

I think this problem can be solved by encouraging such people and business owners to always take moderate risks. They should at least sacrifice an amount there are willing to lose just to experience how crypto work, and more importantly, learning and making proper analysis will be of help to this problem.
Risk management, emotional control, and the proper utilization of technical and fundamental analysis can help with the volatility issue.

Hacks and scams; there are instances where companies and people have lost vast amount of money in crypto as a result of successful malicious attacks and scams. Therefore it becomes very risky to adopt crypto.

As a solution to this, I will recommend that non-custodial wallets should be used to store our long term investments whiles we refrain from all sort of ponzi schemes. This can be detected by their huge promising interests, and through thorough research.

Government policies; some countries have not legalized crypto as a legal tender, therefore limiting its adoption by citizens and institutions within such countries.

This issue can be solved by such countries launching their own cryptocurrencies, which would somehow be stable, like what Nigeria has done by introducing the E-naira, or making constitutional laws that will grant the free operations of cryptocurrencies in those countries.

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

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Apparently, there are pros and cons of the adoption of cryptocurrency by business owners and beneath are some listed.

Merits

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1. Business owners may be free from becoming victims of double spending. So far as there is the involvement blockchain in all transactions.

2. The businesses of the business owners will operate 24/7 which will generate more income to them, as there is no restrictions on accessing financial services and processing transactions by a central authority. Owners will fully run their businesses on the will with no government interference.

3. Transactions made in bearish markets may increase in value during bullish markets, due to the volatile nature of crypto. Therefore increasing the worth of the business owners from the initial payments received. For example twenty Steem can be used to buy a $10 item, where as in no time same item may be purchased with ten Steem due to price increase, given the business owner a profit of extra ten Steem which are worth $10

4. Large market; the adoption of cryptocurrency by business owners will give them a big market field for their businesses activities. All people around the can do business with them without government restrictions. Thus, ensuring a free play ground in terms of transactions.

Demerits

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1. The extreme volatile nature of cryptocurrency can lead the business owners to bankruptcy in times of market crash, and unfavorable tradings.

2. Adopted cryptocurrency business owners can lose all their cryptocurrency funds when they lose their private keys to their wallets.

3. Such businesses owners may be prone to hackers and scammers, and if care is not taken they will lose their funds to these people.

4. Once again, the adoption of cryptocurrency by business owners will make them and their customers susceptible loss in times of wrong transactions, as there is no such thing as wrong transaction reversal in the crypto arena.

Conclusion

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Cryptocurrency is the new world order, it has come to stay and therefore we should all endeavor to embrace the evolution.
I believe the adoption of cryptocurrency by businesses will be of much beneficial than harm, if proper measures are put in place by the business owners.

This is my opinion on the topic at hand for this week.
Thank you for glancing through my article.