While the surge in cryptocurrencies last year caused excitement and dismay among proponents, a look at prices alone hides the real value that is being released within the ecosystem.
The real value of cryptocurrency lies in its use, not its speculation
With the pandemic weighing on the global economic outlook and confidence in older frameworks nearing all-time lows, crypto is filling the void with investors, consumers and traders alike. While the significant surge in crypto valuations is easy to see as a harbinger of the times to come, the real value of cryptocurrency lies in its use, not in speculation.
The adoption of cryptocurrency is increasing rapidly in various industries and use cases. While the most famous steps on the financial stage take place as more Funds and financial institutions are stacking up in the emerging asset classThe main hurdle of cryptocurrency has always been spending ability. However, the increased financial allocations have overshadowed the true dynamics of the blockchain ecosystem, which is greater adoption in retail.
For example, since PayPal added support for Bitcoin, Bitcoin Cash, Ethereum and Litecoin in October 26 million merchants who can accept cryptocurrencies from the PayPal universe of 300 million users. That 26 million reflects a huge shift, especially now that there is a mechanism in place to help traders avoid the volatility associated with cryptocurrency. To underline this point, Paypal is far from the only player participating in this rapidly growing arena.
Binance Pay, the latest addition to the largest cryptocurrency exchange service suite, is designed to take advantage of leverage Binance’s huge crypto footprint at retail. In less than a week since its first unveiling, Binance Pay has landed its first major merchant partner for its digital payment service Blockchain-based travel booking service Travala announced an integration with the leading cryptocurrency exchange.
TravalaWith 3,000,000 booking options between hotels, flights, activities, tours and more, Binance Pay is offered as the preferred payment option for its services. Accordingly, users with Binance Pay accounts can seamlessly finance their next travel experiences with support for multiple cryptocurrencies and one fiat currency.
Others in the travel industry are also participating in the rollout, highlighted by Booking.com’s recent decision to integrate The Visa Card program from Crypto.com. The January announcement opens booking services to over 5 million Crypto.com cardholders. App users can access special promotional offers and discounts as the tourism industry prepares for a planned travel recovery amid pent-up demand for short breaks.
The ability to spend, however, is just one reason the sentiment is changing around crypto. The other powerful catalyst is growing distrust. Whether it is distrust of governments, financial systems or other old institutions – this growing attitude is a good sign for blockchain. Because of its limitless approach and its decentralized advantages, many people view cryptocurrency as the gateway to an equitable, fair and transparent playing field that does not distort the rewards in favor of centralized institutions.
Crypto lawyer and evangelist Lea Thompson replied to a Bitcoin.com request that the Girls Gone Crypto Twitter handle underscores exactly this point.
As more and more people try to log out of current financial systems, expanding the ways they can use and spend their crypto on everyday things like travel is an important step. One detail that I think many consumers overlook is what taxable events it can trigger. I think there needs to be more transparency from companies accepting crypto about what kind of tax events the transaction will set in motion.
As the fungibility and support of merchants grow across the blockchain ecosystem and more traditional brick and mortar retail, the use cases for holding, issuing and receiving crypto continue to grow. While taxes remain a sensitive issue, the rise in custody solutions and the involvement of key market players in the existing financial system means that solving these problems will be a function of time, not if, but when.
Between the pandemic, the increasing digitization of services and the general distrust of the status quo systems that largely support daily life, the perfect storm for the introduction of crypto has finally manifested itself. Given the uncertain backdrop, the cryptocurrency case has never been so compelling. The pace of adoption, especially in retail, continues to reflect this very thought.
As a consumer, how conveniently can you switch to cryptocurrencies as your primary currency for retail purchases? Let us know in the comments below.
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