With an increasingly number of organizations turning to cryptocurrency, many experts in this field feel that soon there will be widespread adoption of the crypto ecosystem.
In fact, according to a 2022 survey conducted by Deloitte, 75% of retailers have plans to start accepting cryptocurrencies over the next two years.
One major reason for this change is that large financial gatekeepers are making it easier for consumers to transact in cryptocurrencies.
PayPal and its subsidiary Venmo, for example, both enabled crypto trading on their platforms. PayPal data showed that users who bought crypto on the PayPal app logged in twice as much as they did before PayPal allowed such transactions.
Additionally, the Chicago Mercantile Exchange (CME) introduced Micro Ether future contracts in December 2021 and CoinDesk has also noted that the number of “bitcoin whales” (addresses that own over 1,000 bitcoin) has been increasing rapidly since the end of 2020.
Since 2021, AMC movie theaters have been accepting crypto payments for movie tickets. When buying tickets online, customers can select to pay with cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
One of the prime advantages of cryptocurrency is as a hedge against inflation. Take Bitcoin, for example. In terms of quantity, there are only 21 million Bitcoins released as specified by the ASCII computer file. Therefore, because of an increase in demand, the value will rise which might keep up with the market and prevent inflation in the long run.
Cryptocurrency also has a transactional speed advantage over traditional currency. Cryptocurrency transactions are done in a matter of minutes and that is appealing to many. Within U.S. financial institutions, most of the transactions are settled in three to five days and wire transfers take at least 24 hours.
Cryptocurrency transactions are also considered cost effective. The transactional cost with the help of cryptocurrency can be minimal or zero. It is negligible as it eliminates the need for third parties like VISA to confirm transactions.
Additionally, there’s the diversity factor. Investments in cryptocurrency can generate profits as a source of portfolio diversification.
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