There is no doubting that the biggest application of cryptocurrency is not what it was originally set out to be in the Bitcoin Whitepaper there are many who will argue that Bitcoin is no longer what it was first created to be.
Bitcoin was supposed to be a digital cash system and an alternative, or even new, way of transacting intended to put cash to the sword. However, the growth of the ecosystem has seen the cryptocurrency industry — primarily with Bitcoin at its head — become far more of an investment opportunity than anything else.
There is still a drive for crypto to be used as a new form of currency, but there are a number of reasons why crypto payments have failed thus far, and are not at the forefront of use cases for the digital era that is leaving cash behind.
That being said, there is a demand for crypto for payments in certain sectors — such as on the Dark Web, but thankfully, these demands are still very small, and do not constitute much of a use case of crypto in its entirety.
Lack of adoption, lack of trust
But, when it comes to real world usage and day to day payments, there are a few factors that need to be considered in understanding why there is not much interest in using the likes of Bitcoin every day for payments.
Crypto.com’s CEO Kris Marszalek said there are a number of reasons that are preventing crypto payments adoption, with lack of trust one of them:
“For the vast majority of the merchants out there, just like for the vast majority of retail banking users out there, crypto is still something unknown, something they still didn’t learn to trust.”
Peko Wan, the chief ecosystem officer of crypto point of sale provider Pundi X, also added:
“For the mainstream, the general perception toward crypto are ‘complicated to use’ or ‘risky to own cryptos.’”
Marszalek also believes that it is a tough process at the moment because merchant acceptance is low because of low incentive, and this is impacting in a compound manner
“Because if you only have 50 million people in crypto globally, merchants have very little incentive to deploy this, unless they are in a business that is covering a similar demographic as crypto.”
Beating back volatility
Of course, one of the bigger issues that still surround the lack of interest in Bitcoin as a payment method is its volatility and the fact that one day your money can be worth a lot more than the other.
But an emergence of stablecoins could be the definitive answer to solving that problem, but they will also have to overcome other problems mentioned above.