I agree that Steem is a great way to send value without the gouging by the traditional banking systems. I've been having my eyes opened up real wide lately as I attempt to find a business banking account that allows me to pay employee withholding taxes to the government without having to pay additional fees just for the privilege of paying the government!
Try and get money sent (or send out) money to/from another country using e-transfer. It can't be done. They call it a wire transfer and charge a huge fee for it. What exactly is the difference between a wire transfer and an e-transfer? Probably just the name. I mean, come on; the credit cards can all send money internationally for a small conversion fee, yet if we try and send money we get dinged big-time.
I would love to be able to receive payments to my business bank account in Steem and to pay the government in Steem, however, at this point, nobody accepts Steem as payment. Steem has to be converted to Bitcoin or Etherium, then converted to local currency and guess what? The leeches are standing in line to grab a big chunk of any money that needs to be converted here too.
You say that you send a dollar to someone and they receive a dollar. That is just partly true. They can't spend that dollar until they convert it, and now it is no longer a dollar, is it? We have a long way to go yet before that dollar remains a dollar that can actually be spent outside of the Steem eco-system.
I'm in Canada and it cost me a hefty premium just to purchase some Steem. Never mind the gamble one takes at each conversion when prices are fluctuating all the time.
The idea is great, but we are not there yet.
True that the day when we can buy things directly with crypto (including paying taxes) will be the real turning point for crypto as currency. Until then all coins do incur significant fees when converting to fiat. But you know, while I can’t speak for others, my experience has been that that opportunity cost is the same or less than other ways I’m charged for moving money. I pay just 3% to go from BTC to cash, which is the same as to send money with PayPal. Though I’m sure this varies a lot, I’m imagining people are still ahead at the micropayment level. Really how could you even send $2 to someone in another country who is without a bank account without using crypto?
If a person has no bank account, then for sure conditions there are such that crypto is likely being USED as currency there. In that case, absolutely, crypto is the best way to send money, regardless of it being a micro-payment or large sums. I recall watching an episode of the Dollar Vigilante where he visits a country where local currency is practically worthless because of run-away inflation. He said that many people there were using Bitcoin as their preferred currency. So it is being used on a small scale. If only we can get it to the point where it (or preferably some other coin with less gas fee and faster transaction times) becomes a real-world currency adopted by the majority, I believe a lot of people are going to be very pleased.