Over the past few years we have heard a lot of encouraging news about cryptocurrencies becoming a part of our society. More businesses now take cryptocurrency payments than ever before. You can get many different products and services through secure cryptocurrency payments. However, a lot has changed when it comes to cryptocurrency payments over the past few months. The amazing cryptocurrency boom was about earning money for most people, but it has irrevocably changed the cryptocurrency payment field as well. Things have changed for the better.
How Cryptocurrencies Were Failing Us
People only look at cryptocurrencies as assets, but they are designed to be currencies. Paying with cryptocurrencies was fairly simple until a few months ago. The whole process only took a few minutes. The boom in the price of Bitcoin increased the number of transactions happening on it. The system was not designed to handle the amount of transactions that were happening – no one anticipated that there will be such a boom. Bitcoin was designed to increase the transaction fee based on demand and supply, a seemingly intelligent solution.
Sadly, this intelligent solution is exactly what ended up becoming the biggest problem for Bitcoin. Now, if you want to make a Bitcoin transaction it is a real pain. You have to pay a very high transaction fee – so high that there’s no point in buying anything that costs below a hundred dollars. You also have to wait a long time for the payment to go through; sometimes you have to wait hours or even more than a day. Imagine ordering a pizza and having to wait hours before the payment went through and you got your pizza.
The Failures Have Led to Improvements
These failures would not have come to light if we hadn’t experienced the boom. This may all sound negative but it is actually a great development. We learnt all of the problems with cryptocurrencies right as they started becoming popular. That is why most other cryptocurrencies were able to fix the problems that Bitcoin is facing. People have looked at the way Bitcoin grew, how it is being managed, and they are using the lessons they learnt from its failures and successes to design better cryptocurrencies.
Cryptocurrencies now will be better payment options than ever before. The cryptocurrencies being updated and launched now have none of the issues that Bitcoin has. Most of them have transaction times of seconds instead of hours. Ethereum is changing the whole Proof-of-Work model so it can exponentially increase the number of transactions that will go through.
We are finally entering the era when people have significant cryptocurrency assets. The fact that transactions have now become easier than ever before means that more retailers will be interested in using them for payment than ever before. Another interesting thing is that many companies are looking at cryptocurrency payments as a way to generate additional revenue. Companies want people to pay in cryptocurrency so they can keep the cryptocurrency as assets which increase in value.
It is safe to say that in a year or two cryptocurrency payments will have become a norm. We are finally addressing the core problems that made it difficult to use cryptocurrencies for transactions.