By Alex Lysak
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Cryptocurrencies used to be used mainly on the Dark Web. Now, they're gaining ground consistently in the retail sector, despite their volatility. Billionaires and major financial companies are turning their eyes to cryptos, and so is the rest of the world. So stay with us and find out why Bitcoin is the future of online payments.
Follow our guest specialist in this topic, Alex Lysak, who specialises and analyzes the market trends within the crypto currency community. Today he’ll be sharing his expert knowledge on how the future of retail payments will work with the rise in cryptocurrencies.
Defining Cryptos
Crypto is a short form term for cryptocurrency; a currency that doesn't depend on banks or governments. Cryptos replace central banks with complex encryption systems that control their release. The whole thing is made viable by blockchain technology, which holds spending records. It prevents holders from using cryptos multiple times.
There are four ways of obtaining cryptocurrencies, or "altcoins," as they're also commonly referred to. You can buy it from a broker, exchange it peer-to-peer via e-wallets, trade online, or mine it as referred to Scanteam research and infographic on crypto payments. Although Bitcoin is the one constantly hitting the headlines, there are other options around. Ethereum (ETH), Neo (NEO), Ripple (XRP), and Litecoin (LTC) are some of them.
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Heavy-Weight Investors
Recently, Tesla has bought 1.5 billion worth in bitcoins. Mastercard plans to operate with cryptos by the end of the year. Meanwhile, the Bitcoin value only rises. Bitcoins have risen over 100% since the beginning of this year. In April 2020, it was worth $7,000. Now, it's at an all-time high of $63,000. It represents a spike of 450%, only in the last six months.
Other personalities are investing in bitcoins big time, somehow increasing their trustworthiness. Apart from Elon Musk, Richard Branson (founder of the Virgin Group), Twitter's CEO Jack Dorsey, Mike Tyson, Snoop Dogg, and many others.
The retail sector is opening its cashiers to cryptos. Even the fashion industry is feeling the impact. Nike and Louis Vuitton are some of the fashion giants that have recently joined the trend.
The Case of Turkey
Cryptocurrencies are experiencing a boom in Turkey due to economic instability. As a result, more business owners are investing in them. Now, it's possible to find even teahouses accepting this kind of payment.
The Turkish lira is volatile due to skyrocketing inflation and constant changes in the central bank. The future of cryptocurrency looks brighter than its national currency for many business people.
Why Cryptos Are Growing
Cryptocurrencies allow for anonymous transactions, and it doesn't get stuck in exchange bureaus. International transactions are seamless, and parts can cash out in their local money. With more people buying online than, bitcoins and similar are becoming extremely popular.
From coffee shops to online casinos, cryptos' acceptance grows by the day. All transactions are Peer to Peer. It means there's no intermediary institution or financial authority involved. For this reason, international transactions cost much less with cryptos.
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Challenges Ahead
Uncertainties and challenges beset the path of cryptocurrencies. Its volatility makes it a risky investment. That's why many financial institutions are skeptical about investing in them; among them, the Bank of England.
In some places, cryptos are in open dispute with fiat currency, like in Turkey. So, many people are still asking: does cryptocurrency have a future?
Read the main objections against cryptos.
Real Value
The main point against cryptocurrencies is that they don't have real value. Central banks guarantee regular currencies. Governments can sell gold and public assets, among other things, to ensure currency value. It's different with cryptos. Cryptos' value is entirely speculative. Once the bubble explodes, there's no central authority to take responsibility.
Volatility
Because no central bank regulates cryptos, no one knows how they'll behave in the long run. Governments ensure the stability of their legal tender by controlling its fluctuation. No one controls cryptos.
A great example of its volatility is the famous "bitcoin pizza day." About 10 years ago, a guy bought a pizza for 10,000 BTC. Of course, this exact amount would make this same guy a multimillionaire these days.
Increasing Digitalization of Fiat Money
Some specialists believe that fully digital fiat money must beat a few cryptos' advantages. Centralized digital currencies can also offer anonymity and safety. Additionally, they're guaranteed by central banks. If regular currencies manage to outwit cryptos in their field, customers will likely shift to safer options.
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Conclusion
The future is digital, and despite market hiccups, cryptocurrencies don't seem to be going anywhere. It's a payment method that fits any transaction and avoids banking taxes. Moreover, it doesn't require a bank account. It's excellent news for those customers who can’t access the traditional banking system.
About The Author
I have been working in online marketing since 2011, my main areas of expertise are marketing research, social media marketing, and SEO. During 9 years of experience, I have helped many products and startups to develop marketing strategies and to implement them further.
Follow on Twitter: https://twitter.com/lysak_aleksandr
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