Crypto Markets — What Exactly is “Adoption”
I first entered the crypto space to use BTC as a means of transaction across the deep-web. I first entered the crypto space to use BTC to buy frozen yogurt. Which sounds true, and which sounds like adoption?
“Adoption” is a famous crypto buzzword. Beautifully vague and ambiguous, its a key component of any shill discussion. In actuality adoption in terms of crypto can take two forms:
- Means of transaction, a literal currency
- Store of value
In this article I will discuss the points made for adopting free-market cryptocurrencies.
Bitcoin For Business
Crypto is a highly volatile, unstable, and unregulated form of currency. As of now, there is no reason for businesses to accept such a form of payment. Famously in January 2018 the North American Bitcoin Conference stopped accepting cryptocurrency as payment. 2018 also saw Steam, Microsoft, and Stripe cease to accept digital currencies.
Pros:
- Services/products can be purchased easily from anywhere on the globe, international payments are greatly simplified.
- Reduced fees and extremely fast transaction time (dependent on crypto asset).
Cons:
- Highly volatile asset, greater risk for any business to accept.
- No return policy, no consumer protection, no do-overs/take-backs.
- Inaccessibility for most consumers, only niche consumers use cryptocurrencies.
- No reason to accept digital currencies, fiat works great. If it ain’t broke don’t fix it.
Bitcoin initially saw its value climb as it started to be used for deep-web transactions. For transactions outside illegal underground marketplaces, fiat is king and will remain that way.
Cryptocurrency for business? F
Cryptocurrency for Peer-Peer Transaction
What is stopping most people from transacting peer-peer with cryptocurrency rather than fiat? Accessibility. Purchasing cryptocurrency requires fiat and a bank. If someone already has fiat, why go through the process of purchasing crypto to send, just so the receiver can transfer back to fiat?
Pros:
- Quickly and cheaply transfer money internationally.
Cons:
- Most people don’t give a shit about cryptocurrency, its use carries a small learning curve, and it is still time consuming to purchase any crypto asset.
- Must buy/sell assets immediately to avoid volatility.
For those on the in with crypto, international payments are so much easier and simple. However volatility is real, and reasonable people will find they must buy/sell immediately. Cryptocurrency for peer-peer transactions? B
Tokenizing Real-World Assets
“Giving users easy access to many different kinds of digital assets on the blockchain and, particularly, tokens that are linked to assets in the real world, is crucial to seeing blockchain adoption reach the next level, and I applaud Digix’s initiative in being the first of many such projects to successfully launch.”
- Vitalik Buterin on Digix Global
This is a clear use case for blockchain technology, not for obscure free-market crypto assets. Value is tied directly to real-world assets, with the tokens used as a simpler, faster, and easier means of transfer and ownership. The use cases here are enormous, practically anything can be tokenized. Blockchain use-cases? A+
Store of Value vs. Means of Transaction
Hodlers are not hodling only to spend BTC on froyo next year. I’ve never heard of a fiat hodler, or a hodler of any true currency. Bitcoin is a store of value more than it is a currency. Considering it is the first of its kind, and blockchain technology will revolutionize the world, it makes sense Bitcoin will be around for years to come.
Bitcoin as a store of value? A
Adoption of Your Shitcoins.
Nothing to adopt here. Over 4,000 digital assets do not need to exist.
Summary
Crypto for business? No
Crypto for peer-peer? Possibly
Crypto for store of value? Just Bitcoin, possibly Ethereum
Adoption of the underlying technology? Yes
Adoption of your shitcoins? No, never, impossible
