With cryptocurrency continuing to infiltrate a number of industries and sectors on a global scale, it is only a matter of time before it explodes into the mainstream and is accepted as a fundamental online payment method. But before it does, there are a number of factors that must be thoroughly considered beforehand. Continue reading to find out what they are as well as how likely cryptocurrency is to become the only method of online payment in the not-so-distant future.
The earliest adopters
Despite its widespread popularity, cryptocurrency tends to be relatively well-known but not necessarily universally engaged with. As a result, it has only been adopted by a select few industries and sectors. According to a recent study, between 2.9 and 5.8 million global consumers pay for goods and services with cryptocurrency.
Whilst this may seem like a large number, it is minuscule in relation to the planet’s population of almost 8 billion. In addition, millennials, or those aged between 25 and 40, are far more likely to invest in cryptocurrency than any other age group. This is largely due to the fact that this generation grew up in conjunction with the development of modern technology.
As well as millennials, men are also statistically almost twice as likely to invest in cryptocurrency than women. If the intended target audience of your small business or large corporation is millennials or young adults, it may benefit both parties to adopt cryptocurrency payments. By doing so, you may also stand out from the crowd and stay ahead of the curve, attracting prospective customers interested in your chosen niche in the process.
A wide range of cryptocurrencies
By adopting cryptocurrency as a form of online payment, you must first familiarise yourself with the wide range of cryptocurrencies available today. As the earliest, and perhaps most widely recognized, cryptocurrency, Bitcoin is a great place to start. It tends to attract the greatest customer base compared to alternative cryptocurrencies and, as a result, is a relatively sensible investment. It is also a natural access point into the world of cryptocurrency as a whole and has been adopted by a wide range of online casinos in recent years.
By familiarizing yourself with the ultimate Bitcoin gambling guide, you can experience cryptocurrency as a method of online payment for yourself. With the highest market cap as well as the highest trading cost, it is also a solid option for online marketplaces and online payment services. It is worth remembering, however, that Bitcoin does tend to suffer from lengthy processing timeframes.
If you have heard of Bitcoin, you have likely also heard of Ethereum. Originally designed as a developmental framework for a wide range of applications, it is a great option for use as a digital currency. This is why it is commonly utilized for smart contracts in both business and financial sectors.
Potential obstacles
Before cryptocurrency can be adopted as the only method of online payment, there are several potential obstacles that must be considered beforehand. One of the most common concerns is price volatility. With only a small number of online businesses currently accepting cryptocurrency as a method of online payment and the rest deeming it too high-risk or waiting for the bubble to burst, education still has a long way to go to convince the wider public of its wide-reaching benefits for both customers and merchants.
With cryptocurrency only ever in the headlines in the event of a market crash, these concerns are understandable. However, in order for it to become the only method of online payment, a growing number of consumers must believe and trust in its ability to offer a greater buying and selling experience for both parties involved.
As of today, several countries have also applied a number of tight government sanctions, rules, and regulations to cryptocurrency to prevent it from ever entering the mainstream. Security risks are another limiting factor when it comes to the widespread adoption of cryptocurrency as the only method of online payment.
They may be protected from external threats associated with traditional payment methods but, as a result of their digital nature, they are vulnerable to cyber-attacks. For example, in 2018, cryptocurrency Coincheck hit the headlines after £380 million in virtual assets were stolen by hackers. By storing cryptocurrency in digital wallets, however, users can significantly lower the risk of theft.
Unless you have been living under a rock, you will be familiar with, at the very least, the word cryptocurrency. In its quest to become the only method of online payment, it has undergone a series of challenges and accomplishments. With greater education and public trust, this may become a reality sooner than we previously thought.