Cryptocurrencies: Are they reliable in business?

[Ayuba Ernest]

Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.


Cryptocurrencies are often used for illicit activities, such as money laundering and purchasing illegal goods. However, they can also be used for legal transactions. Many businesses are starting to accept cryptocurrencies as a form of payment.


The reliability of cryptocurrencies in business is still uncertain. They are not backed by any government or financial institution, so their value can be volatile. It can be difficult to track and verify cryptocurrency transactions, so businesses may be reluctant to use them. Finally, regulators are still trying to understand cryptocurrencies and how they should be regulated.

 

[Mika]

What is the role of cryptocurrency in Business? The answer is to simplify the payment system, reduce transaction costs, and perform transactions very quickly.
When Ripple (XRP) was created in 2012, the primary aim of the developer Ripple Labs was to build it as a currency for business-related payment. Ripple was basically created for moving large funds for cross-border transactions, especially within the business community. In the traditional financial system, when you want to buy from a company in another country, you will have to open an LC in a bank and deposit the required amount, the bank will then provide a guarantee of payment to the other party in another country. This whole process takes a long time. The payment system in the traditional financial system is very clumsy, however, Ripple aimed to make this simplified. It is another story that Ripple got caught in an SEC court case.

 

[sincerem]

Cryptocurrency came to supplement the areas the banking systems failed to execute faster. I know it's transactions aren't traceable, and a single mistake deems your assets frozen in the blockchain, that's why you just have to cross check your payment address multiple times if you aren't sure after copying it to avoid any heart break. It has happened to me earlier on when I started crypto newly, since then I don't make such kind of bizarre mistakes again. I know some coins are volatile, that makes them profitable too in the future. If you don't like the volatility non those coins, you can choose the stable ones and stop fluctuations, keeping your funds without moving backwards in terms of bearish run. Some coins are super fast in transactions, even better than the bank payment especially XRP coin, dogecoin, EOS and other small coins, whose blockchain aren't congested like the one of BTC and ETH.

 

[btaliat]

Crypto ever since its introduction in 2009 has been a subject of controversy. No one has a clear cut answer to the problems that do connect with possibility of using it as a means of payment.

The first problem that makes crypto somehow difficult 5o be adopted is the fact that it is volatile. No one can easily predict the price of crypto coins. For the fact that the price goes up now doesn't mean that it won't go down the next day or even minutes. Using this type of payment may spoil business profit as there may not be way of measuring profit or loss.

Other reason why crypto may not even be used for business activities is the fact that not all governments support the issue of crypto. While some people believe that it is a way of defrauding others, others see it as ponzi that will soon swindle their citizens their hard earned money. Only few countries believe in the usage of crypto coin for business transactions. Other countries either regulate its usage or they create alternative like digital currency.


Illeteracy level of most people do not even allow for the success of cryptocurrency. Not everybody knows how it works.