Hello everyone, How are you all doing? I welcome you all once again to my blog, and on today's topic, I shall be discussing with you the adoption of cryptocurrency in the financial market.HAPPY READING!!
Cryptocurrency is the latest movement in the financial institution now, with a market capitalization of $1.1trillion, this is a huge movement compared to what we have seen in the stock market and forex between the gap year, this is something new, and something everyone would love to embrace.
Cryptocurrency has tended to bring a new movement and a big turnaround in the finance market, we see popular investors like Elon Musk with billions of assets in crypto, and despite that other billionaires are still trying to wrap their heads around it, yet, we have seen some countries like El Salvador embracing bitcoin as its legal tender and as well investing some large amount in it.
Cryptocurrency is wide beyond just buying and selling, it could make life easy, and great adoption of it will bring lots of freedom and fewer workloads on financial institutions, it might be difficult to build at first, but after that, the rest comes with ease.
Cryptocurrency adoption in financial institutions will bring a lot of great impacts, we saw the crypto market with trillions of dollars, this is an institution that doesn't exist physically, nor does anyone knows it builder and so on, yet it has dominated the market, we called this a new movement, and thus, this proves we can achieve a great impact without necessarily needing the Traditional method of Finance.
Big financial institutions such as world banks, and central banks, have dominated the financial market long enough with the price of country assets being stuck between the ups and downs, cryptocurrency tends to bring the common ground to both users, where a country's assets don't necessarily stick between derivatives, but rather can be controlled by each individual that partakes in owning up to the asset.
How businesses can be boosted through cryptocurrency transactions.
Here, let me give some simple hints on how business could be boosted through cryptocurrency transactions.
Faster Transactions - With cryptocurrency adoption in the business, transactions will be faster which means both user and business owner could get done with the transaction in an instant.
No charges - This as well is another way of boosting business, we all love the idea of paying less for what we have been more for, so in this case, customers get to make payments without the fear of being charged additional charges for transactions.
Accessibility - One sweet thing about crypto is that it could easily accessible 24/7, this means at any point in time, a user can easily get done with their business in an instant.
Interoperable - Additionally, one interesting is that crypto is the same all over the globe, so this means, I can easily make payments to other companies abroad at the same rate, and vice versa.
Well, cryptocurrency is accepted globally for our day-to-day transactions will make things easier, we just need to access the internet and probably smartphones, then we are good to carry on with whatever transactions we plan on.
Easy payment Using Smart Contract - If cryptocurrency is being accepted for day-to-day transactions, then we can boast of easy transactions in this case, users have the currency in their wallets, then within seconds, the payment deal is done with ease.
More Secured - Well, cryptocurrencies are built on blockchains, which means their transaction records are also on the online ledger, so in this case, all transactions are stored on the blockchain network which thus makes payment safe, and as well the customers don't get to be worried of account manipulation.
Online Receipt - we see the case whereby when a user purchases an asset, they might lose the receipt and find it hard to claim the right to their assets, but with cryptocurrency, the proof of transactions is stored online, whereby a user can easily trace back right to their transaction timestamp with the hash address of the network.
No intermediaries - One of the amazing things about cryptocurrency transactions is that they eliminate intermediaries, where in this case, one doesn't need to go through a central authority or third party in claiming funds or making basics transactions, and so far you have the right address, be rest assured of your transaction been passed through.
Here are some pros and cons of cryptocurrency adoption by business owners.
Transaction will be faster - With cryptocurrency adoption in business, we get to carry out day-to-day transactions with ease, whereby within some seconds, the transactions on both ends are processed.
Safe Ledger - with cryptocurrency, all transactions carried out can be easily traced back using the Address book, or hash address, where in this case, this proves the transaction was processed and successful.
Interoperable - The idea of making payments abroad at ease is great for business owners as well, which means payments could easily be made across countries with cryptocurrency, instead of going through the traditional method.
Minimal Charges - With cryptocurrency adoptions, business tends to go well as transaction charges are small when compared to the amount being paid off for transactions in the banks.
Restricted- The disadvantages that come with business owners adopting cryptocurrency are due to its restrictions in other countries, where countries such as China are yet to embrace the idea of cryptocurrency banking.
Volatility - The High Volatility as well is a major setback to business owners, the crypto market is not stable, which means companies could easily make losses.
Required Technology - Cryptocurrency is only operated through the internet, this means users without a mobile device and the internet couldn't carry out transactions.
Required Experience- Cryptocurrency is not a trial and error, and any mistake made can lead to loss of assets, should incase a user mistakenly reveals their private keys to the public, the funds will be moved without the activity being recovered.
Illegal Activity - This is one of the cons as well, cryptocurrency can easily be used for illegal activity since it is fully encrypted and can not be traced back to a user, mostly the decentralized wallets.
Here comes my conclusion on the Topic of Adoption Of cryptocurrency, where I have discussed the Pros and Cons that still restrict business owners from embracing the cryptocurrency method of banking.
Cryptocurrency has been used in the past for illegal activities, which means there are lots of illegal transactions that can not be traced to the real owner due to full encryption, and the cryptocurrency market is highly volatile as well, which means at any moment in time, anything is bound to happen which might leave businesses and companies at loss, for example, is the case of El Salvador country loss explained in the article.
Thank you all for coming through my blog, see you in the next post!!