The key to the mass adoption of cryptocurrency lies within the influence it can have on our day to day lives. Currently, there are a number of major businesses that accept cryptos, but more needs to be done in order to ensure the mass adoption of cryptos globally. A few nations have already taken the leap needed – such as Venezuela and Iran – but others are still lagging behind.
Is Bitcoin Digital Cash or Digital Gold?
Arguably it can be both, but for crypto to thrive it needs to pick a lane and stick to it. Francis Pouliot – Bylls CEO – pointed out a very interesting metric from his firm’s crypto payments application. People that buy Bitcoin tend to be investors, looking to hold BTC, before trading it back to fiat and spending the related earnings. Whereas people who get paid in Bitcoin are actually using BTC for goods and services. This interesting comparison highlights that the key to mass adoption – and more stores accepting cryptos – is more people trying to spend cryptos after being paid in a digital currency.
People that earn income in Bitcoin tend to spend bitcoins on goods, services, debts, bills and top-ups.
People who buy Bitcoin with fiat tend to hodl, or sell for fiat.
Observations from @myBylls “real” users.
Merchant adoption won’t take off until people get paid in Bitcoin.
— Francis Pouliot (@francispouliot_) October 20, 2018
Volatility Needs to Calm Down
In order for Bitcoin – or any other crypto for that matter – to become an accepted form of payment it needs to lose its volatility. Yet, if the crypto market loses its volatility, it could spark a wave of huge selloffs, as there are a lot of people involved in crypto looking to make a quick buck from the huge price swings.
Despite this, volatility is actually calming down. As more institutional investors pile into the crypto market through crypto funds, it should become more stabilized. Institutional investors tend to hold for long periods of time, as they are often using Bitcoin as a gold replacement. Products like First Block Capital’s Bitcoin mutual fund and Fidelity’s new crypto trading desk are providing this demographic of investors with an onramp to the crypto markets, meaning the end of volatility could be closer than people think.
Venezuela Leading the Way…
Venezuela is showing the world that cryptos can be embraced nationwide. Citizens and shops have been turning to cryptos ever since the country’s economy tanked and hit hyperinflation levels. Most shops, restaurants, and bars now accept Bitcoin and Dash. Dash is actually the preferred option due to its faster transaction times, as citizens prefer to pay using cryptos due to the national currency being virtually worthless. In order to buy a loaf of bread, Venezuelans need a wheelbarrow full of cash – this fact alone tells the story of the country’s economic woes. The government has also launched its own cryptocurrency, under a cloud of controversy. It’s encouraging businesses and citizens to start using it. However, the Petro is highly questionable as a currency and seems like a smoke and mirrors creation designed to fool citizens.
Not many companies pay their staff in cryptos, but a handful give the option. In order for cryptos to really thrive and take over the global monetary system, more firms need to join the crypto movement and pay their staff in crypto – or at least offer the option. Once this happens, we should see mass adoption of cryptos and more stores accepting digital cash than ever before.
