At the beginning of the crypto trend in 2015, the Bitcoin was traded for as low as about two hundred and fifty dollars ($250) and almost three million people migrated to using digital currency in that time period. At this time many financial startups were trying to capture the market trend of virtual currency.
At the present time, the amount of users in crypto has multiplied drastically with over thirty (30) million people using the blockchain technology. This gives rise to the question of whether or not crypto will replace payment systems like credit and debit cards. The answer to this lies in the process.
Cryptocurrency does not have a distinct fee for making transactions and the value is determined by various factors like the size and time of the transaction. The highest price ever charged is fifty-five dollars and this occurred in 2017 whereas the lowest price charged was as low as zero point five four dollars. This makes the traders not know what they are getting themselves into beforehand.
Moreover, the time taken for the transaction to be completed is very long in cryptocurrency as the transaction needs to be verified at various step throughout the process. These factors along with the scalability and volatility problem crypto faces, all add up to the answer that no, crypto is very unlikely to overtake electronic payments systems anytime soon.
This has affected the crypto market extremely because the startups that were rushing to board the market trend are now rethinking and changing their strategy.
Despite the fact that digital currencies may not replace the electronic payment system. Blockchain technology has a lot of benefits and uniqueness to offer like it’s a decentralized platform which is a very attractive feature to have in financial technology. Blockchain technology has a lot to offer and even though its global adoption is taking the time it is nonetheless an innovative technology.