London, UK, 4th Dec 2021, ZEXPRWIRE, We all know that cryptocurrency is a type of digital currency that is decentralized and uses cryptography to keep transactions secure. It’s been years since the first cryptocurrency, Bitcoin, appeared on the market. Since then, many more currencies have followed suit, including Dogecoin, Coinye West, NoDogeCoin and Slimcoin.
FinancialCentre Broker Chris Fisher said that these new currencies are making strides in order to push themselves into the spotlight. Youngsters all around the globe are trying to make their way into this new industry. This is only because they find digital currency to be a more convenient and comfortable way of sending and receiving money while maintaining the social aspect of traditional money.
Cryptocurrency has two main elements, mining and trading. Mining is, basically, a process by which transactions are verified on their digital ledgers or blockchains then added as part of the eternal record. It’s run by miners who use special software that allows them to solve difficult math problems (which does require a lot of computing power and electricity). Miners receive new cryptocurrency as a reward for their participation. Additionally, miners must compete against each other to complete these math problems in order to add transactions into the blockchain at regular intervals. This competition is called mining. The people who solve the problems first get the rewards; hence they are called miners.
Criticism on crypto
Criticism of crypto is also common, with most of it being that cryptocurrencies are unstable. Indeed they are volatile, sometimes experiencing tremendous increases in value over short periods of time before drastic decreases soon after. Apart from this, mining is not entirely environmentally friendly, as it requires energy to solve math problems. This consumes a lot of power and electricity. However, mining is becoming more efficient day by day with better use of technology.
One thing that one has to consider when dealing with cryptocurrencies is security. Recently hackers have been targeting cryptocurrency exchanges due to the fact that people are storing their digital money in them for safekeeping. These exchanges are increasingly coming under attack on a regular basis, and this is why it’s important to use extreme caution when choosing where to store your money. In addition to all of this, the anonymous nature of the currency invites criticism from the public due to the fact that people can use the currency to do illegal things.
As a consequence of these issues, many companies are sceptical about using cryptocurrencies as a form of payment. Moreover, government authorities are unsure about how to tax this new currency which results in the fact that there are no rules for it yet. This lack of solid regulations is forcing users to look at things from the governmental perspective and be suspicious of cryptocurrency.
This uncertainty around the whole concept is the major reason why cryptocurrency is not as widely accepted by the majority of consumers. Youngsters are more likely to see this as an investment opportunity rather than approach it with the idea of spending their money on services and goods. It’s important that major companies start accepting cryptocurrency payments so that people can get used to them and they become less suspicious about using them.
Stripe, an Irish-American company that provides online payment services, is one of the many companies that are oscillating between accepting and not accepting cryptocurrencies as payment methods. In the year 2018, the company took a stance that from now on, they will not be accepting Bitcoin as a payment method. According to officials, this decision was taken owing to the increasing volatility of the token. As per Mr Fisher, the volatility in Bitcoin price causes confusion among consumers who are not able to decide whether they should keep holding their Bitcoins or exchange them for fiat currencies.
The co-founder of Stripe, Mr John Collison, said that crypto means different things to different individuals. It was revealed that the company has dedicated an entire team to exploring the potential of Web.3. Stripe will be indeed exploring ways to use cryptocurrencies as a source of payment. The strategy behind these experiments will be to make sure that the whole process is as simple as possible, with as little confusion as possible for consumers.
Mr Fisher says that the decision by Stripe not to accept Bitcoin payments might have been taken in order to protect its customers from future price fluctuations and volatility. However, such a decision might have had a negative implication on the company because the overall growth of cryptocurrency and its widespread adoption might be affected.
The future of cryptocurrencies
Although we cannot predict whether cryptocurrencies will become a norm in the near future, we do know that there is growing interest regarding this form of currency as an alternative to cash. The global financial ecosystem as it exists today is not perfect, and one can only wait and see if cryptocurrency will one day be an integral part of it.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.