Depending on who you ask, cryptocurrency is either part of the future that will eventually be widely adopted, or it is a fad with a value too mercurial to depend on (with Bitcoin frequently fluctuating by the double digits in value during trading).
Some companies want nothing to do with it, while others are now embracing it.
Writing for Fortune, Anne Sraders goes into more detail about who is accepting cryptocurrency and their challenges in using it.
As far as difficulties, one is just giving people an incentive to actually spend their cryptocurrency. As stated, the market value of it can dip quickly, but it can also surge just as quickly.
For instance, Bitcoin has gone for over $50,000 this year. By comparison, just last year in 2020 it was worth just $5,000. With people believing that this is a long-term investment that could make them rich if they are just patient, it is tricky to convince people to spend it now just to buy things like taking out.
As far as companies that are willing to utilize cryptocurrency, big names like Visa and PayPal have gotten on board, and even Starbucks has joined in. But even then the process is not as simple as something like swiping a debit card would be. Instead, these companies allow you to convert your cryptocurrency into a physical currency that you can then spend on products and services. So there is a bit of an intermediary.
Courtesy of BitPay, currencies like Bitcoin are also accepted by Microsoft, Amazon, DoorDash, Twitch, and AT&T. These kinds of big-name companies have also been rewarded for looking towards the future, as BitPay has primarily seen itself processing big purchases from users. Luxury items like jewelry and fancy cars are what holders of cryptocurrency are purchasing.
Fred Hubler, Chief Wealth Strategist of Creative Capital Wealth Management Group believes that blockchain technology, in some form, will be here to stay now and in the future. “Most of the talk is about cryptocurrencies, but the true technology that can act as a multiple for cutting down on costs is using the blockchain and artificial intelligence to reduce or eliminate digital friction.”
Still, the fact that companies are relying on a middleman like BitPay shows their hesitancy in fully embracing cryptocurrency. It demonstrates that big companies want to accommodate cryptocurrency holders, but don’t want the liability of processing it themselves. And for the time being, that could continue to be a deterrent to widespread acceptance.
To learn more about how corporations are approaching cryptocurrency, read Fortune’s article right here.
Break through the myths and confusion of Bitcoin and gain a deeper understanding of cryptocurrencies in a lunchtime NoonZOOM webinar entitled “Dispelling Bitcoin and Cryptocurrency Myths” happening Thursday, October 21, at noon.
Fred Hubler, the Chief Wealth Strategist of Phoenixville-based Creative Capital Wealth Management Group, will sort through seven myths about Bitcoin, including:
- Bitcoin is a bubble and buying it is a big gamble.
- Bitcoin isn’t secure and has no real uses or value.
- Bitcoin will soon be replaced by another cryptocurrency.
- Bitcoin is bad for the environment.
An interactive Q&A will follow Hubler’s presentation.