Is Crypto Now Mature Enough for Consumer Payments?
Vitalik Buterin, the co-founder of Ethereum has said via Twitter on November 16, 2020, that he firmly believes that crypto payments deserve another push towards mainstream adoption, despite making huge progress in the past decade.
Crypto Payments Have Come a Long Way
Since the creation of Bitcoin 12 years ago, thousands of projects have been inspired to create digital currencies designed to contribute their bit to the digital revolution. Crypto payments have become quite popular as the world is gradually understanding the benefits of cryptos.
Per a tweet by Vitalik Buterin, since the November 2012 adoption of bitcoin as a payment method by WordPress, a popular blog hosting platform that holds the record of being the first big website to integrate bitcoin into its processes, the industry has achieved numerous significant feats, including better scalability, faster payments, stablecoins and more.
However, the Russian-Canadian computer programmer has stated categorically that he thinks the industry still needs to work hard to promote the widespread use of these nascent digital currencies for consumer payments.
In his words:
Crypto Adoption Steadily Increasing
While critics still condemn bitcoin and other cryptos for their super volatility, it’s worth noting that the digital currency space has attracted more investors than haters in recent years, as the masses are now getting more enlightened on the workings of cryptoassets, coupled with the growing uncertainties in the world of traditional finance, partly triggered by the ravaging COVID-19 pandemic.
In the last five years alone, bitcoin adoption has increased by a whopping 700 percent, as more and more people are now using cryptos to pay for purchases both online and offline. For instance, a good number of Nigerian businessmen now use BTC to pay for imports as the country’s current regime has implemented laws that make it harder to access the US dollar.
According to a March 2020 survey by HSB, 36 percent of small businesses in the United States accept bitcoin and altcoin payments, as the proliferation of crypto payment processors such as BitPay and the rest has made life easier for merchants.
In late September 2020, global payments giant PayPal announced plans to integrate cryptos into its operations and make it possible for its merchants to accept crypto payments.
While it is now safe to say that digital currencies are now giving traditional fiat-based payment methods a run for their money, the scalability issues of Bitcoin, especially during periods of a massive price increase and high network traffic is still a serious issue that must be permanently solved before the world’s flagship crypto will finally revolutionize the world of payments.
At press time, the price of bitcoin (BTC) sits at $16,285, with a market capitalization of $301.90 billion, as seen on CoinMarketCap.