Why is the adoption of cryptocurrency as electronic money slow and low? . The primary reason is the lack of standards. Currently, there are dozens of distinct cryptocurrencies, each with its own protocols and possible industry. These currency compete with one another, and new currency continues to be released every month. Furthermore, because of the possibility of hard forks, or divergent development, there is always the risk that new versions of established cryptocurrencies might be shaped. Nobody knows which currency will probably dominate or if all the currency that exist will survive. Consumer psychology research demonstrates that whenever a market lacks a standard, consumers are slow to adopt innovation due to the uncertainty.
Just as problematic for customer adoption is a sharp fluctuation of his own value. In the past one year alone, bitcoin has triumphed in value from $5, 857 to $18, 343. Just imagine, if you utilized bitcoin as money and wished to spend one BTC to purchase a vehicle, you’d have been able to buy Anything from a Honda hatchback into BMW sport utility vehicle based on whenever you purchased the automobile. This amount of variability isn’t desirable for any sort of cash which serves as a medium of exchange. It’s supposed to preserve its value. The next limitation for consumers is that no retailer or service provider supports cryptocurrency at present.
Among important retailers, Overstock.com is the only one which has consistently accepted bitcoin. And even in its case, things have not always gone smoothly. Earlier this year, it perplexed bitcoin with bitcoin cash, a considerably more affordable currency, and ended up selling products to a shoppers for heavily discounted prices. The classic poultry and the egg problem is in play here. Until enough shoppers clamor to spend cryptocurrency, companies will not accept them. And since few businesses accept cryptocurrency, consumers will not really bother with this. For shoppers, money, credit cards, and mobile payment services such as Paypal and Venmo fueled by bucks are good enough for today.
How are consumers using cryptocurrency? . Despite the fact that cryptocurrency hasn’t yet caught on as electronic money, there are a few market consumer areas where it has made some headway within the last year. Unsurprisingly, one application is sports betting. Introduced at the FIFA World Cup championship, Cryptocup is a method betting on specific sports results using the ether. It has enlarged to NFL football. Cryptocurrency has also been used in a small number Of real estate transactions in Florida and California, either to generate social media buzz due to the novelty, to target the property to profitable cryptocurrency traders looking to increase their wealth or to attract wealthy foreign buyers. The third interesting application is in the art where consumers can purchase shares in iconic artworks with cryptocurrency or electronic blockchain tokens themselves become art. These exceptions underscore the rule. As consumers, we are still a ways away from using cryptocurrency to pay for an oil change or purchase a gallon of milk.