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The use of cryptocurrency on a daily basis does not make any sense pragmatically as of today, at least not yet. One of the reasons why cryptocurrency has failed to kick off in recent time is the fact that the usage of these digital assets is not very straightforward. Additionally, they do incur an extra fee for each transaction that you make. Sometimes, these fees happen to be more than the actual transaction amount itself. Thus, this discourages people from using it for something small like buying themselves a cup of coffee.
While this current grim state of cryptocurrency seems to be a long lasting one, analyst Lisa Ellis feels that these digital assets are destined to disrupt the existing payment systems.
Ellis’s Opinion on the Future of Crypto
Lisa Ellis feels that even though crypto is still no match to the conventional payment systems such as Visa and Mastercard, the threat that cryptocurrency poses should not be ignored. With the constant addition of new features all the time, the usability of these virtual assets is increasing at an alarming rate; thus, giving people an alternative payment method in the future. The core features of cryptocurrencies such as decentralization and giving people the complete freedom over their funds are entirely in contrast with the traditional fiat currencies and the centralized payment systems.
Ellis conjectures that cryptocurrencies appeal to the people as it provides complete freedom of usage of their funds. This sort of threat to the centralized systems cannot be dealt with by going against these virtual assets head-on. In fact, by implementing this technology with the existing systems, the centralized systems will further increase the number of features that the technology has to offer and in turn, increase its overall usability.
Not only do the cryptocurrencies enable completely trustworthy transaction systems but also make cross-border transactions faster and easier than ever. In the traditional transfer methods, transfer of funds across a state border would normally take a week or two. Additionally, the transaction fee that one has to pay for traditional transactions is too high.
This problem is completely solved by the use of cryptocurrencies. Cross-border transactions are confirmed in under an hour and the fee that one has to cough up is hardly anywhere close to what you would pay in a centralized system.
It is due to these advantages that virtual assets offer that several banks have already started to implement blockchain technology in their platforms. JP Morgan which is a highly reputed bank has announced the release of the JPM Coin which will make use of blockchain technology to make transactions more fluent on their platform.
Bottom Line: Cryptocurrencies are here to stay and are definitely going to disrupt the payments industry in the near future. The centralized payments systems need to implement these technologies in their platform in order to give themselves a chance to co-exist. The era of cryptocurrency is going to start in the near future, giving people complete financial freedom that they deserve.