The advent of Bitcoin in 2008 fell on deaf ears and people saw it as a trend that everyone will eventually think no more of. One decade later, it became the catalyst of many other cryptocurrencies and encouraged further development of blockchain technology. The world is already entering the age of digital currency.
- Russia, Japan, Sweden, and companies like Microsoft and Starbucks are joining the mass adoption of cryptocurrency
- Cryptocurrency transactions are more convenient than traditional currencies
- The worldwide acceptance of cryptocurrencies are tied up with people’s trust
- LYOPAY is an online platform that will make crypto transactions easy
According to the data of Chainalysis, a massive 881% jump of global adoption of bitcoin and cryptocurrency from July 2020 to June 2021 was found, led by Vietnam, India, and Pakistan. Moreover, major companies around the world like Microsoft, PayPal, Starbucks, and Home Depot, have jumped on the bandwagon in their own unique way.
For example, Starbucks, a coffee shop behemoth, partnered with a third-party digital wallet provider in March 2020 to allow customers to pay using bitcoin. LYOPAY is a similar application that allows consumers and businesses to use and accept cryptocurrencies as a mode of payment.
Advantages of cryptocurrencies
- Faster transactions
Imagine sending and receiving money anywhere for a tiny service fee and less waiting time. That’s how fast and convenient a crypto transaction is since middlemen like banks or financial services companies are out of the equation. Not to mention the removal of exchange rates, interest rates, spending rates, and the usual waiting time of three business days. In the Bitcoin network, for example, a transaction would take around 10-30 minutes to be processed. A smartphone and internet connection is all you need to wire money easily.
A bank is a business, and not your personal safe. Thus, the money you deposited in the bank is not just sitting in a vault, but is used by the organization to make more money. The bank lends your money out to people who are borrowing personal loans and profits from the interests they pay. While it is impossible to track the whereabouts of your money in the bank, cryptocurrencies show a real-time update. Cryptocurrencies use blockchain technology, a type of distributed ledger that allows users to see and trace every transaction made on that blockchain. No user can hide or erase a transaction once it is verified and recorded on the database.
Most cryptocurrencies are bank-free, meaning they don’t need a centralized authority or a third party to transfer money or ownership of any commodity. As mentioned above, banks use their customers’ money to profit. Therefore, it is not impossible that they can go bust because of bad loans, miscalculated risk management decisions, regulatory issues, and more. A decentralized currency prevents the occurrence of a single point of failure, which refers to the idea that if a bank fails, your savings in that bank goes down with it.
- Inflation hedge
Inflation is a term that refers to the process of currencies losing their value over time, triggering an increase in the price of consumer goods. This happens when a government decides to print more currency than what its country needs. On the other hand, some cryptocurrencies like Bitcoin, have a finite supply. In theory, this will protect itself from devaluation better than traditional currencies. The Bitcoin “halving” that happens every four years will also help in diminishing the currency’s inflation rate.
Cryptocurrencies vs. traditional currencies
Cryptocurrencies and traditional currencies are not entirely polar opposites. Both act as a store of value, allow smooth payments between two parties, and depend on the trust vested in them by the consumers. However, their similarities can only go this far.
Cryptocurrencies can function efficiently without the regulation of banks and governments. Consumers put their trust on the security boasted by the blockchain technology, striking out the necessity of any third party. Hence, you can send and receive money faster no matter where you are without thinking about exchange rates and transaction fees. In addition, most cryptocurrencies like Bitcoin have a limited number of units, meaning it is safe from inflation, unlike traditional currencies.
How will the world embrace cryptocurrencies?
To be in full swing, cryptocurrencies must give solid solutions that will assure their reliability to consumers. Sure, they were used for illicit activities such as money laundering and tax evasion, and became victims of hacks. But like any other technology, cryptocurrencies and blockchain are constantly evolving to reach their full potential. In fact, only less than one percent of all crypto transaction volume is connected to illegal activities, a testament to the technology’s promise of security.
Despite the speculations surrounding cryptocurrencies, millions of people, including major companies worldwide are joining the crypto-space. Verified users of Coinbase alone, a cryptocurrency exchange platform, grew from 32 million at the beginning of 2019 to a whopping 73 million+ as of writing. Customers of corporate giants like Mastercard, Amazon, Microsoft, Starbucks, PayPal, and more are now allowed to use cryptocurrencies as a mode of payment.
The role of LYOPAY
Integrating cryptocurrency payments in your business and using cryptocurrency for your day-to-day transactions will be easy with LYOPAY. With the aim of stimulating the mass adoption of cryptocurrencies, LYOPAY offers multiple tools that will help millions use cryptocurrency in trading, flight booking, e-commerce, and more. These initiatives fuel the worldwide acceptance of cryptocurrencies and it is only a matter of time before everyone will embrace them.
What do you think? Crypto will be the future of money? Let us know your opinion in the comments!