Cryptocurrencies have the potential to revolutionize the way we make daily transactions. In fact, many individuals are interested to know how far they can go in terms of usage, considering the dramatic increase in the number of crypto users in the past three years.
What Do Financial Experts Say About Cryptocurrency?
Experts believe that cryptocurrencies will play a significant role in the future of money and finance due to their ability to provide faster, cheaper transactions, and greater security compared to traditional payment methods.
There’s a growing trend towards mass crypto adoption, and some experts think global adoption is not a matter of if but when. The Finder.com crypto adoption index says the number of crypto owners hasn’t surpassed 15% of the global population as of November 2022, but there’s been a persistent upward trend in crypto ownership since the launch of Bitcoin in 2009.
The Increase in Demand for Crypto Payments
Despite the crypto winter, the demand for crypto payments significantly increased in 2022. A Fidelity study revealed that nearly 58% of institutional investors worldwide invested in digital assets last year, a 6% increase from the previous year despite the bear market conditions.
In addition, Deloitte conducted a survey which found that about 75% of retailers intend to accept crypto payments. Also, in a study titled "Paying With Cryptocurrency," researchers discovered that 85% of businesses with annual revenue of $1 billion have started accepting crypto payments to attract and retain customers. Meanwhile, 82% of the merchants who participated in the survey cited the elimination of intermediaries as their motivation for accepting cryptocurrency as a payment option.
The study also revealed that 77% of the merchants surveyed are attracted to cryptocurrency due to lower transaction fees, which are approximately 1%. This is significantly less than the standard fees ranging from 1.5% to 3.5% charged by other payment methods, such as credit cards.
The Rise of Crypto Payment Platforms
One of the possible game changers in the future of crypto payments is the rise of crypto payment platforms. These platforms enable users to send Bitcoin payments and facilitate other crypto transfers easily, some of which only require a mobile number or QR code to complete a transaction.
In the "Paying With Cryptocurrency" study, some merchants say that technical obstacles and difficulties continue to impede their adoption of crypto payments. Out of those who have not yet adopted crypto payments, 68% reported that they face challenges in integrating the technology at the point of sale. With the use of crypto payment platforms like Ka.app, a crypto app for beginners and seasoned crypto users, these merchants can make the entire process of facilitating crypto transfers much easier for them and their customers.
Will Crypto be the Future of Finance?
Crypto has the potential to play a significant role in the future of finance, but it is difficult to predict if it will completely replace traditional financial systems. Some experts believe they will, some others don’t.
As mentioned, cryptocurrencies have certain advantages, such as faster and cheaper transactions, greater security, and the ability to operate on a decentralized, peer-to-peer crypto network. However, there are more things to consider with regards to crypto laws and regulations.
Ultimately, whether crypto will be the future of finance or not may depend on how cryptocurrencies evolve and how governments, businesses, and consumers adopt them. The speed and extent of global crypto adoption may also determine the extent to which coins and/or tokens will shape the future of crypto payments.
Final Thoughts
In conclusion, the future of crypto payments is still uncertain, but it holds great promise and potential. At the same time, major factors may affect the growth of the crypto payments industry, including technological advancements and greater regulatory clarity.
Nonetheless, several factors suggest that the crypto market will grow even more in the coming years. Some of these factors include the increasing interest in web3 technologies, crypto payment platforms, crypto swapping, decentralized finance (DeFi) applications, crypto-based metaverse projects, non-fungible tokens (NFTs), and the growth of stablecoin use.
FAQ
Will crypto boom in the future?
It’s difficult to predict whether the crypto market will boom in the future or not as it is highly volatile and is subject to fluctuations in price, adoption, and investor sentiment.
What does mass crypto adoption mean?
Mass crypto adoption refers to having a significant number of individuals and businesses widely use and accept cryptocurrency as a legitimate form of payment or investment. It implies that cryptocurrencies have become widely accepted and used in everyday transactions and financial activities, just like cash.
How can Ka.app contribute to mass crypto adoption?
Ka.app makes it much quicker and easier for users to send and receive crypto. The app allows you to complete a cross-border transaction in just a few taps, and you can usually send or receive crypto in just a few seconds. Ka.app also allows you to send crypto for free when the other Ka.app user accepts the payment in the same currency (e.g., sent in Bitcoin and received in Bitcoin).