Experts agree that the future of cryptocurrency will strongly depend on whether they are perceived as a tool of payments leading online shops. Yet in this respect there is a very good trend.
With all the euphoria generated by the cryptocurrency in recent months, bitcoin, ether, litecoin and other coins have not yet become part of the so-called real economy. In addition to some (sometimes shadow) of Internet-shops and small companies, cryptocurrencies are accepted as means of payment by several major players in the US and Japan, but widespread their distribution is still very far away. The reasons for this are easily understood if we consider the problems that can cause the cryptocurrency of the giants of the industry such as Amazon.
The volatility in the cryptocurrency market are very high, fluctuating rates of 20-30% within 2-3 days were not uncommon in recent months. Therefore, the adoption of payments in the cryptocurrency will be associated with a significant risk for the retailer. In the era of exchange of futures for bitcoin it would be possible to hedge through the futures market. But it would be related to transaction costs, which would increase the already too high transaction fees bitcoin. In addition, the futures markets of bitcoin have not have sufficient liquidity.
But much more importantly, the speed of the transaction. The Bitcoin blockchain currently, given the slow adoption Segwit, allows you to make at least ten transactions per second. For Ethereum, this value is approximately two times higher. This is despite the fact that according to Amazon, the company has processed more than 600 transactions per second on peak of buyers ‘ activity. Even if a small percentage of Amazon customers pay in bitcoin or ether (and at the same time around the world was not made to the other transactions of bitcoin) in the current situation, it quickly led to long delays in processing transactions.
However, cryptocurrency enthusiasts say that such problems are only temporary difficulties which will be resolved in the near future. Either by improving existing blockchains of cryptocurrencies, either due to the emergence of new, more efficient coins.
For experts, the question is not whether major online retailers to accept payments in crypto-currencies, but when it will happen. This will certainly be a big breakthrough for the industry. After all, if a giant like Amazon will begin accepting bitcoin payments, it will give him great value. All the evidence suggests that the major Internet players are seriously working on implementation of this decision. For example, Amazon has registered
multiple domains associated with cryptocurrencies.
This allows us to fantasize about how could be the payments in the cryptocurrency. With the exception of the introduction of retailer direct payment gateway for cryptocurrencies, the most likely method is a credit card with a balance in bitcoin. In fact, these credit cards available today. There are at least three issuers of such cards.
One of them is the Swiss company Monaco, which recently collected $ 25 million through the ICO. Another TenX from Singapore, which collected $ 80 million through the initial placement of tokens. And finally, savedroid from Frankfurt, which is now in the middle of his ICO and announced the release of crypto credit card.
Crypto credit card can already be used today for online purchases — at least in theory. However, for each transaction, users must first convert the amount in the account in Fiat currency before they will be able to make the payment. It makes paying expensive and complex, so hardly anyone makes purchases via crypto-credit card. In addition, banks and payment systems are beginning to restrict cryptocurrency card payments.
But this problem will vanish as soon as the large retailers begin to accept cryptocurrencies. This event will be a sign for widespread distribution of crypto-currencies as means of payment among ordinary people.