Page 14 - AeM_June_2018

RESEARCH, ANALYSIS & TRENDS

Emerging cryptocurrency POS

technology eventually solves the mass

market Bitcoin blockade

Almost a decade in the making since the inception of used by the average person to pay for their groceries,
Bitcoin, and with a current market-cap hovering around bills or the hair dresser? Or are Bitcoin and Altcoins just
half a trillion dollars USD, Bitcoin, cryptocurrency and a fad, doomed to remain ensconced in a cult-like tech
blockchain have become common to the tech savvy. realm?
While most people don’t understand how they work,
Bitcoin and cryptocurrency are not only hot topic While it’s clear that the only way for cryptocurrency to
buzzwords, but they’ve created thousands of multi- avoid falling into oblivion is by enabling its widespread
millionaires. Even so, most people in the mainstream adoption and acceptance as a “real” payment method,
have no interest or intent to embrace Bitcoin and, as the reality is that the infrastructure and protocols have
such, it still has veritably no bearing on everyday life as not been in place to foster this. In fact, there have been
one still can’t even pay for a cup of coffee with any seemingly insurmountable obstacles faced by
cryptocurrency. merchants across the board preventing them from
accepting cryptocurrency as a viable form of payment.
The ‘Innovation Life Cycle’ must ensue
Four of those key reasons include the following:
In the last year alone, the cryptocurrency market cap has
grown over ten-fold, and even taking into consideration 1. High volatility promotes fiscal vulnerability:
“bubble-effects” of hype speculation, the fact remains Businesses are not cryptocurrency investors and, as
that, since the inception of Bitcoin, the cryptocurrency such, they cannot be expected to accept risky
market cap is following an exponential growth curve. payments that may lead to serious financial losses.
Today this amounts to over $150Bn and various expert Every business operates with supply costs, margins,
opinions estimate its future growth in the next 5-10 years etc. Therefore, it would make little business sense to
to be in the trillions of dollars. With these kinds of take on a risk of such magnitude by accepting crypto as
numbers, it begs the question: With over $150 billon of payment for their goods and services. What if the local
cryptocurrency already in circulation, why can’t we yet mechanic accepted Bitcoin for several large jobs and
pay for coffee or a slice pizza with crypto? then Bitcoin value dropped 20%? This leaves these
sort of business owners, whom have fixed overhead
Not only this, but why is cryptocurrency languishing in a costs, in a vulnerable space where they take payments
tech world of its own, far removed from adoption by the that fluctuate.
regular consumer or average business? And why does it
exist only in a digital space, largely accessible only to 2. Technical know-how: Retail operators and cashiers
the tech-wise cryptocurrency investors? Perhaps the cannot be expected to possess the technical expertise
most fundamental question that everyone is asking— needed to safely process a cryptocurrency transaction.
from economic pundits to families around the kitchen This is clearly one of the largest problems preventing
table—will crypto ever become common currency to be mainstream adoption, since dealing with cryptocurrency

14 June 2018 - Mobile & Video Marketing