Why Its Not Prime Time for Cryptocurrencies
Cryptocurrenices are a hot-button topic these days. Both business owners and customers are trying to get a better idea of whether they should invest in or avoid crypto money. This article will discuss why cryptocurrencies haven’t turned into the mainstream yet and who can help you with a cryptopayment merchant account.
Digital Currencies: Cryptopayment Merchant Account
Recently, Coinbase, which is a platform on which you can buy and sell cryptocurrencies, has gone public in the U.S. Thus, it became the 1st big cryptocurrency company to do this.
The specialists contemplating on how crypto money is going to further evolve represent 2 groups. One group think the fluctuations around the price and uncertainties around the practical use of crypto money will keep many away from investing in this type of currencies.
Those who think crypto money has a bright future believe people will start using it instead of traditional currencies in the years to come. Thus, crypto money will gain a dominant role all over the world. It’ll gain more importance if more people start seeing value in a blockchain network.
Why merchants prefer accepting cryptocurrency as a payment means has to do with lower fees, security and user anonymity issues, and ease of management. Business owners get an opportunity to enjoy prompt and profit-making transactions around the globe.
This leads to a growing need for reliable and affordable merchant processing services, including a cryptopayment merchant account from a reputable provider. Thankfully, there are expert providers in the field that offer advanced and innovative technologies allowing the use of various eCommerce systems across a single platform.
Reasons Why Cryptocurrency Isn’t Mainstream Yet
Crypto money is gaining a more significant role in the mainstream economy. However, why crypto money hasn’t gone mainstream yet? Let’s see.
- The fluctuations around the digital currency value are great, and this creates risks for small- and medium-sized eCommerce merchants.
- The lack of reward programs, which consumers value much.
- Not enough payment processing protection. Chargebacks have a significant role in the credit card ecosystem, which isn’t the case with cryptocurrencies.
- The wide variety of crypto money: today’s market offers about 5.000 cryptocurrencies. This creates a challenging situation for banks, payment processors, and merchants.
- Accepting crypto is getting more expensive.
- Security risks associated with these digital currencies. Cryptocurrency users are looking for added security measures.
- The decentralization around these digital currencies and the fact that governments aren’t the issuers of this type of currencies. Their data is shared across thousands of computers around the globe. National and local governments thinking about taxing, banning, limiting, or controlling regulations. Some countries are already working on the creation of their own national cryptocurrencies. The latter are known as central bank digital currencies or CBDCs.
So, cryptocurrencies, which are based on blockchain technology, are viewed as a long-term investment for many. However, others find them risky. The points above tell you the reasons why cryptocurrencies aren’t ready for prime time yet.
Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.