ASK LEO: IS CRYPTO THE BEST FORM OF TRANSACTION/PAYMENTS?

Source

Imagine not having to deal with this failing and falling Naira of a currency and all you have to transact with is via Crypto.

Someone commented on my post yesterday saying it will be best if crypto is integrated outside the cyberspace and I kept wondering what if Crypto is the main means of transaction/payments. What will be its ups and downs? Will that be better than the government currency(Naira), will it be worse? How easy will it be?

While thinking series of thoughts came flooding in and in this post, I will be sharing some of them. Do pardon me if some are wrong, you do know I'm just starting to learn more about Crypto.

In my opinion, I don't think crypto will make the perfect means of transaction/payment. This is due to several reasons. The first reason I will be sharing with you is how slow it is to make a transaction. I will use my case as an example. Before I'm able to transfer some coins from one wallet to another, it takes nothing less than 10minutes and most times it takes longer. Imagine I'm in a hurry at a store and I have to make a quick transaction, that means I will have to wait for 10minutes or more before I'm able to complete the transaction. I will have to go through some verifications through my sim and email. What if the sim I used for my wallet happens to not be with me at that moment? That means there is no transaction, now imagine if it was an emergency.

Another thing to look into is the transaction fee. Sometimes the fees are higher and sometimes they are lower. That means for every transaction I make, I will have to pay a little extra on it. Calculate all these little extra fees and sum them up in a month, I'm sure that will amount to something worth saving. What happens if I have the exact amount I needed to make payment for something in my wallet with no extra fee? We both know the transaction won't even be possible and this happens most of the times.

The most important reason why crypto won't make the best form of payment is the fact that it's so unstable. This is the reason why Elon Musk decided to stop collecting Bitcoin payment in his Tesla company after suffering a huge loss when the China crypto market crashed. If a bigger company can suffer that huge loss, imagine what will happen to a smaller company, Supermarkets, Grocery stores and all that. What happens when you receive payment for a particular item and even before the end of that day, the value happens to decrease? How will you maximise your profit that way at the end of the day? I know it goes both ways though. There is tendency of the value increasing too but businesses can't run on that probability. In order for a particular business to survive, it needs a stable coin to be able to track its profits and expand. Just as you can make a huge lot when the value increases, you can also lose a huge lot too. Before you're able to wait for the value to increase back, the business would have suffered a great deal of loss.

In conclusion, I think crypto is best for investments as we all know and not a means of transaction. Go into it, put some money in it and allow it to grow, sell and make your profits. Using it as a form of payments will definitely have it advantages but the disadvantages involved is much more that its advantages and to me, its not worth the risk. I think if a more stable cryptocoin is invented, then probably it might work. But what's the use of it if it doesn't rise nor fall? The significance of crypto is in its ability to rise and fall. What now happens when that factor is taken away? Well let's leave that for another post.

THANK YOU FOR READING MY BLOG TODAY, DO HAVE AN AMAZING DAY.

Posted Using LeoFinance ^Beta