Cryptocurrency is frantically pursuing mainstream status and it would seem that the unrelenting fall of crypto prices is adversely contributing to its goals. However, there is more to the realization of mainstream adoption than the obvious prices of crypto.
The fundamental use case of crypto is not the store of value that is widely becoming the trend. Instead, cryptocurrencies are a digital form of money; therefore, their primary use case lies in their ability to facilitate transactions. Crypto’s major selling point is its instantaneous transactions which do not require the inputs of banks or any other form of middlemen. As such, the true power of crypto is cross-border and seamless transactions which bode well for retailers and merchants.
We can safely say that the success of the mainstream status pursuit depends on the global acceptance of crypto as a payment option. The surge in the prices of crypto, the eagerly awaited Bitcoin ETF or the predicted influx of industrial investors will play their role in this pursuit, but the retail-driven adoption of crypto will likely take center stage.
Crypto’s retail-driven adoption has come a long way since 2014 when overstock.com kicked off its bitcoin payment options on its platforms. The online retailer’s move opened the door for more big-names to become part of the crypto story. And today, the list of merchants accepting crypto as a form of payment for their services and products is growing. Yet, the mainstream status crypto is coveting will only come to fruition when it is globally recognized in the e-commerce sphere. However, there are still some factors that are hampering the global acceptance of crypto as a form of payment.
What Are The Barriers For Retailers Accepting Crypto?
The volatile nature of the crypto is a blessing for traders as it helps them make more profit. On the other hand, the spike in prices has been a major barrier to the explosion of crypto payment adoption. Retailers have to constantly monitor and update the price tags of their merchandise so that they will reflect the price trend of the crypto market. The crypto market is still in its infancy and it will become more stable as it matures.
This is a major barrier to the mainstream adoption of crypto as retailers shy away from incurring losses due to the unavailability of a robust liquidity. Why would retailers put their business at risk when there are other viable payment options? We can link the liquidity issues plaguing crypto to the fluctuation of transaction fees and the processing time of crypto networks. Although crypto facilitates cheap transactions, there are times when processing fees skyrocket as a result of the congestion of networks. Congestions also delay the processing time of transactions- a blow to the instant transaction crypto promises.
Possible Solutions To The Limitations
Implementation Of Real-Time Exchange Rate Payment Options
The introduction of instant payment solutions which will automatically update the crypto price tags of goods will assure retailers that they are not doing business at a loss. Also, installing real-time exchange locks on their portals will give customers options of either paying with cryptocurrencies or fiat currencies at the market price. Locking in the exact prices that reflect the market trend as soon as a customer clicks the buy button will promote a level of trust between the two parties.
Innovative Scalability Solutions
Introducing innovative scalability solutions will play a major part in resolving the liquidity issues plaguing crypto. Fortunately, developers are looking into this and some networks are making head away in this department. The sheer size of resources, manpower, and funds networks are investing in blockchain scalability demonstrates their level of commitment to resolving crypto’s liquidity issue.
Already, XRP has shown us that crypto can compete with top payment platforms when it comes to transaction processing speed. However, if we are serious about the mainstream adoption campaign, then developers must completely resolve these issues.
Why Is Retail Adoption Important?
We have seen how much crypto can influence the financial industry and at some point, this accomplishment was the Holy Grail for the average crypto enthusiast. However, crypto’s past achievements can no more fuel the next phase of the mainstream adoption race. 2017’s bull market was the major turning point in the space and it drove the global awareness of crypto. Now that people are aware of the amazing features of crypto, how can they use it in their everyday lives?
Not everyone is cut out to become a crypto trader; many are more interested in using it as a payment option. The retail adoption of crypto will drive the next stage of the crypto mainstream campaign by giving people more reasons to own and use coins.
Eventually, crypto will achieve a mainstream status, which will also drive the prices and the value of crypto to the roof. As a trader, you can capitalize on the volatility and the viability of crypto by signing up for our live trading signals which will help you identify profitable opportunities in crypto’s route to mainstream adoption.