Cryptocurrencies had been originally seen as unreliable innovations in the daily lives of Americans, belonging to a niche and seldomly used by potential tech-savvy consumers. However, it took them minimal time to grow in popularity, and are now presented as means of transactions used by many major corporations. Originally invented about a decade ago, digital coins such as Bitcoin or Ethereum were presented as niche assets, but they soon became financial instruments known worldwide. This article explores how cryptocurrencies, currently adopted by major companies and retailers, are changing the course of daily transactions and what they could mean for the global marketplace.
Adoption by Major Companies and Retailers
The adoption of cryptocurrency by major companies and retailers has been another significant milestone in their growing recognition and popularity. Big companies like Tesla and PayPal made news by integrating cryptocurrencies into their dealings. Tesla, for instance, accepted Bitcoin for its vehicles for a short period, which was an extremely positive sign from a player in the traditional market. While it didn’t last long, the bold move showed that cryptocurrencies could be used in high-value transactions such as buying a car (Coindesk). At the same time, PayPal – a leader in digital payments, supports this cause by allowing tens of millions of its users to not only buy but hold as well as sell digital currency directly from their PayPal accounts (CNBC). As a result of these integrations, millions of consumers have had the opportunity to try out cryptocurrencies, which then boosts consumers’ confidence in using cryptocurrencies. Major retailers are also beginning to see the value in accepting cryptocurrencies. For example, Overstock.com began accepting Bitcoin in 2014, making it one of the first major online retailers to do so (NowPayments). That early adoption has not only made the company stand out compared to its competitors but has also brought in a more tech-savvy customer base that looks for alternative payment methods.
Cryptocurrencies as Everyday Transactions
As more companies and vendors begin to accept cryptocurrencies, the spending of digital money in everyday transactions proceeds to catch up. Now people have the freedom to make use of their digitized currencies for many everyday activities such as travel, entertainment, and groceries. Starbucks has already started receiving Bitcoins through Bakkt third-party app services, which allows its customers to purchase daily coffee with digital money. Bakkt is one of the major companies that grew due to the surge in cryptocurrencies. Bakkt offers services to major businesses as well as institutions. It allows its clients to incorporate transactions using cryptocurrencies into their businesses. The rise of crypto debit cards and payment processors has facilitated cryptocurrency use in everyday transactions. For example, through its Visa card, Crypto.com allows consumers to spend their digital assets wherever traditional debit or credit cards are accepted. These cards will automatically exchange cryptocurrencies to the local currency during a transaction; As a result, a user can shop easily without worrying about the exchange rate or how complex the transaction can be.
Moving Forward
Though there are advantages of using cryptocurrencies for daily transactions, like privacy and low transaction fees with investment growth possibilities, there are some pain points as well. The price volatility is a significant concern, as the value of cryptocurrencies can slip down, while it is just as likely to shoot up, widely in a very short period. The environment and uses of Cryptocurrencies evolve daily as different countries are adopting variable approaches toward taxation, legality, and consumer protection. The volatility of cryptocurrencies is also influenced by government integration, as the government decides to further regulate them, their volatility will decrease, thus stabilizing the digital coin. Despite some other flaws, cryptocurrencies have become an essential parameter of daily financial transactions. Its impact is further made on the sales, customer behavior, and buissness strategies. Accepting cryptocurrencies would be open to a new customer segment, hence potentially boosting sales and customer loyalty. Besides, as global acceptance and trends towards cryptocurrency increase, such businesses are likely to be better positioned to compete in the international market. This new era of digital currencies would also heavily benefit international transactions due to it removing the tedious currency conversion issues frequently faced by major corporations dealing with international transactions.
