Volatility and Speed of Transactions Act as Barriers to Bitcoin Adoption Over the Dollar

in #business7 years ago (edited)

In the regular world of commerce people want to get transactions done in the moment. A shopper or buyer wants to be able to pay for something and leave. A seller wants to be able to get their money at the time of the purchase, so that they can get to the next client and not have to worry about whether the client's payment is valid or rejected. Imagine having to wait 10 minutes for a credit card purchase to be verified.



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Last summer I talked about Bitcoin needing to be more stable for more mainstream adoption, because the volatility is a risk-averse situation that keeps people away from investing with a greater chance to lose their money.

The fluctuating value of Bitcoin and cryptocurrencies in relation to the dollar stands out. Volatility is seen by 60% of surveyed cryptocurrency holders as a barrier for use in everyday transactions. If the currency -- like Bitcoin -- you are using to pay for something is volatile, then in the 10-20 minutes you wait for a confirmation, the price can change dramatically in that time, where you may end up losing money because the price went up or down. For many crypto holders, using Bitcoin for daily transactions doesn't make sense.

Transactional use of cryptocurrencies in daily use isn't dead with Bitcoin. There are other cryptocurrencies that have improved transactions speeds, such as Ethereum, Litecoin, Dash, and Steem. Business owners and consumers can both worry less about the slow speed of Bitcoin. As more people learn about blockchains and cryptocurrencies, they can see that there are more viable options for payments that match the expectations of the consumer market economy.

That deals with the transactions speed issue. As for volatility, the banker and Wall Street interest in blockchain and cryptocurrencies is growing. Hedging against the volatility of Bitcoin is being addressed and developed into services for market participants.

Despite these potentials, there is still the current powers that hold much wealth who can step in to block adoption, to put boulders in the road and prevent things from moving forward. Governments and big banks can work against the easy adoption of cryptocurrencies that will upset the balance of power in the world. Cryptocurrencies have the potential to free people from the requirement to use regulated currencies. Decentralized blockchains can fee people from the stranglehold of centralized government controls.



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The road into the future looks interesting, but it might be a long road before we get to replacing the US dollar or other national currencies in our daily lives.


Thank you for your time and attention. Peace.


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Oh yes, a long an interesting road indeed.

But not really. We have been using the coin of the realm for thousands of years, and paper only a few hundred. Cryptos will replace them all in a much shorter time.

However, I bet most of the baby boomers will die before they switch over.
And most of the children being born today will never know about checks or cash.

Bitcoin is actually doing the correct thing, for all the wrong reasons.
Sure, bitcoin will not be the buy-a-cup-of-coffee coin of the future, but greed is a great impetus to get people to try something new. And, bitcoin will probably get to the size where it will become stable (less volatile) first. And then it will be used for things such as settling debts between nations.

Before it gets there, it will probably be the thing that we use for international trade when no other country will accept the dollar. And for that, we don't need fast small transactions, we need slow, dependable, safe-feeling, large transactions. And that is bitcoin all the way.

However, I bet most of the baby boomers will die before they switch over.
And most of the children being born today will never know about checks or cash.

That's an interesting prediction ;)

we need slow, dependable, safe-feeling, large transactions

Other cyrptos aren't doing that?

Other cyrptos aren't doing that?

Of course they are doing that, but they are not THE one. They don't have the power of the name.
It is all about trust. And people trust the one that everyone else trusts.

Why did VHS win over BETA?

I agree with you and hope that steem will pick up fast because it is more stable and has a faster transaction time. Upped, thanks for sharing. I wish you success and a happy weekend.

The Volatility doesn't really seem like a big problem to me. I think the price tags of cryptocurrencies will get more stable if more people know about it and its market cap is higher. I do agree with the transaction speed problem.

So the volatility won't be an issue for risk if they are worth more?

It's a good post, however let's be honest, Bitcoin is what, 8 years old? In the crypto world, that makes it a technological dinosaur. The world has moved forward and ones like Steem, Eos or Cardano are way superior in terms of transaction speed, costs and capacity.

Oky thats a big issue with bitcoin transactions, didn’t heard about it before but it is that point by which bitcoin users may get stuck in difficult situations, though it has the highest mark in crypto market but having such difficulty for users may cause its down grading..

Yes, it seems "plagued" with a slow transaction validation rate...

If the problem has taken longer time, why they are not giving attention to it

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Crypto will win the long arduous process of consumer adoption once the services matures. Like GSM or email