Why Aren't People Buying Coffee with Cryptocurrency?

2652 0 2 3 4 2 (0)


No matter how rosy the arguments about the future of crypto economics and the prospects of blockage seemed to be, there will still arise some sensitive questions that limit the efficiency of the system. Cryptocurrency still has miles away from overcoming these shortcomings and hopefully very soon, it will get there.

Currently, there are about 12,000 outlets in the world that accept bitcoins and cryptocurrency for payment. In theory, even now you can buy real estate, clothing, air tickets, pay for lawyers' services, and in some places even pay for a cup of coffee and buy food in a supermarket. But in practice, such ads are nothing more than advertising. Customers are not in a hurry to pay in crypto-currencies. Why?

Take, for example, Bitcoin (BTC).

Currently, the average commission for one transaction in Bitcoin (BTC) is about $ 0.83. If it is a question of large transfers in the amount of several thousand dollars, then the commission fee will be so high and inconvenient. Therefore, it is absolutely insensible to pay that high when fiats can easily pass for that without having to worry about those fees. Now Imagine paying such a commission when buying a cup of coffee for $ 1.5, Isn't that inexpedient?

A year ago, the commission for the transaction was $5! In fact, the transfer commission excludes the possibility of using Bitcoin (BTC) for micro-deals. Yes! The most popular and expensive cryptocurrency at the moment is completely unsuitable for daily purchases! This is a short foresight for the cryptocurrency evolution and maybe possibly, their plans never included this small and most active sector of the economic chain.

Aside from the commission, which is only a small part of the inconveniences that can deliver cryptocurrency in everyday life, another big shortcoming is the speed of transaction. Transaction speed can be from 10 to 60 minutes. Sometimes, in a clogged network, one transaction can take 33 hours! Do I have to wait for 33 hours to confirm payment for a service I need urgently?

In cases like this, one cannot know for sure when the transaction will be conducted. Therefore, the uncertainty here is a sum of the high commission fees and low transaction speed. And the truth which we all like to face here in the business world is that neither service providers or sellers are ready to use "uncomfortable" money.

Now, the question is "Does this mean that what we call crypto-currencies is not actually a currency, that is, a means of payment?" In Japan and Singapore, cryptocurrencies are officially recognized as a means of payment. That is awesome! That is actually a boost to the blockchain evolution but how perfect are they handling these challenges?

Currently, there are several ways that you can make purchases using cryptocurrency:

Crypto-currency debit cards

There are several tens of crypto-currency debit cards that allow you to make purchases. For an additional fee, you can even withdraw real money from them in an ordinary ATM. However, the owners of such cards face all the typical problems that I mentioned above: high commission for replenishment of account, long waiting for the transaction (from 10 minutes) and limits on making payments. On the other hand, the user has round the clock access to his wallet and does not pay a commission when making purchases and withdrawing money from the account.

Hardware Wallets

Externally, this device resembles a thumb drive with a mini-display. The seller connects it to a computer or mobile gadget via a USB port, and the buyer enters a password. The first hardware wallets Trezor were released a few years ago. They support all types of electronic wallets and work on any OS.

Cryptomats

Such terminals can be found in almost all major cities of the world. To use the cryptom, simply bring the smartphone or printout with the QR code of your wallet to the screen. Such automatic machines work almost instantly, only here the commission for transfers here can reach 20%.

Mobile applications

This method is relatively convenient, mobile applications run on all known operating systems and allow you to make purchases in the crypt anywhere in the world. On the other hand, if something happens to your smartphone, it will be difficult to restore access to the wallet.

Despite these methods of payment for cryptocurrency, using virtual money to make everyday purchases is still inconvenient and expensive. The high price of this privilege consists of the cost of the commission, the waiting time for the transaction and the uncertainty.

The co-founder and CEO of Bitfury, which controls almost 10% of the computing power of the entire global network of Bitcoin (BTC), believes that Bitcoin (BTC) cannot be considered a means of payment:

"If you use bitcom-technology as a technology for moving assets, storing valuables, but not paying them in stores, everyone will be happy."

Join the Conversation on Telegram 

Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content


Comments (0)

Recent Updates

  •   
    Jan 19, 2019 9:38 AM

    Sanofi SA (ADR) - Consumer Healthcare Total Revenue

  •   
    Jan 19, 2019 9:38 AM

    Sanofi SA (ADR) - Consumer Helathcare Other of which Gold Bond Revenue

  •   
    Jan 19, 2019 9:38 AM

    Sanofi SA (ADR) - Vaccines Polio/Pertussis/Hib Vaccines (incl. Hexaxim/Hexyon, Pentacel, Pentaxim and Imovax) Revenue

  •   
    Jan 19, 2019 9:38 AM

    Sanofi SA (ADR) - Vaccines Influenza Vaccines (incl. Vaxigrip, Fluzone HD, Fluzone, Flublok) Revenue

  •   
    Jan 19, 2019 9:38 AM

    Sanofi SA (ADR) - Vaccines Meningitis/Pneumo Vaccines (incl. Menactra) Revenue

  •   
    Jan 19, 2019 9:38 AM

    Sanofi SA (ADR) - Vaccines Adult Booster Vaccines (incl. Adacel) Revenue