Old Way Vs New Way - When Will Crypto Take Over?

Recently, I was in a restaurant. The food was good and the time was fun. When we finally wanted to pay, something strange occurred. Several Credit Cards got declined by the machine. At first we made fun of our friend because his card was declined first, but after a whole round of declines, we knew that something strange was up! It turned out that the card machine was not the newest one and so we all had to get some cash at the nearest bank. This was really annoying and me feel thrown back into times where you always had to carry cash around. This motivated to write this article in particular! I want to talk about, what probably happened behind the scenes and why crypto is the future of finance.

What Happened Behind The Scenes?

I researched a bit and I found out that on this weekend several card machines were affected by the same error. The payment with card in these specific card terminals is not possible anymore. The worst thing about this is that not only this restaurant was affected but apparently big supermarkets as well as gas stations. The cause of this malfunction is not perfectly clear yet, but a lot of traces lead towards a software malfunction or an expired certificate.

In both cases, it seems like the infrastructure of these card terminals seems to get older and needs to be replaced. In order to be safe, the general advice is to carry more cash around which seems very unfuturistic to me to be honest. Was not the main argument of the traditional finance system that it is reliable and safe? What arguments does the traditional system has, when the crypto system is faster, offers more benefits and is now apparently not as unstable as the traditional one?

Crypto-Industry as Solution!

I think this incident just showed me once again, that the future of payments has to be the crypto industry. The blockchain technology has already so many advantages more. It is transparent and in some cases a lot faster than the traditional system. It is not that unstable anymore and especially international wires are many times cheaper than the traditional international money transfers!

The argument with the environmental concerns is already on the declining path as every industry needs energy. And while Proof of Work blockchains are using more energies than other blockchains such as Proof of Stake, the majority of Bitcoin miners are already on a good way to use renewable energy sources in order to operate their facilities.

Let’s also talk quickly about all the potential benefits of a crypto based payment system. If we take Bitcoin’s Lightning network for example. In El Savador it seems to work perfectly fine and many Latin-American countries are looking to make Bitcoin-payments possible in their countries as well. Furthermore, Kevin O’Leary is a big advocate for Dollar Backed Stablecoins. He sees the future of the US Dollar in them and it would also protect the position of the US Dollar in the future. With this incident the last “real” argument against crypto should be fallen, and I hope that during the next bull run we will see some more adaption.

Conclusion

I am aware that crypto will need some sort of regulation to be able to overtake the traditional payment systems. But I think the first step is done. The mistrust in the traditional ways was high before this incident but with it happening it just reassured me that there will be no way around crypto in the future. I am very excited for what’s to come and I hope you are so too! 😊

Published by ga38jem on
Steemit
On 9th July 2022