If you have an idea for a new product that you wish to launch on the market, most investors will ask questions built around a simple premise: How is it different from already-existing products? What problem does it solve? Will people want to buy it? As a “product”, cryptocurrency aims to be different from money, wants to solve the problems encountered by money, and people are increasingly willing to buy into that idea.
There is much to debate here, of course. And there are flaws with the cryptocurrency industry, so our goal is not to glorify it. But there are inherent advantages in the technology that show why the adoption of crypto is gathering pace, most notably in how we send money from one place to another. In essence, the fundamentals of cryptocurrency cut out the middleman – banks and financial institutions – from the transaction. It’s a peer-to-peer transaction, going from your cryptocurrency wallet to the receivers.
Crypto transactions cut out the third party
A good example of how it works can be seen with cryptocurrency gaming platforms like Metaspins casino, which offers a variety of . If you were to deposit at a traditional online casino, you’d need to use debit cards, credit cards, or an eWallet like PayPal. Regardless of the method, your transaction is facilitated by a third party. That means there is a cost to be borne, either by you or the merchant. A Visa or PayPal transaction might seem free of charge, but someone has to pay at some point in the exchange. PayPal made $25 billion in revenue in 2021; Visa made $21 billion.
Cryptocurrency isn’t always free to send from one place to another, but the costs can be much lower – just a fraction of a penny. That puts less pressure on the merchant and, in theory, can lead to a better service. In the case of cryptocurrency online casino, that could mean better rewards and benefits, and even better games, for players.
But paying an online merchant is but one example. Consider how we accept sending money abroad as a service with a relatively high cost. Using PayPal to send to pay your friend your share of a restaurant bill might cost you nothing, but have you used it to send one currency to another? There are exorbitant fees and an uncompetitive exchange rate. It depends on how much you are sending and where you are sending it to, but it could cost anywhere between 2% and 10% of the entire transaction. Again, crypto fixes that by eliminating the third-party vendor.
Faster transactions on a peer-to-peer network
Speed, too, is an advantage. Have you ever wondered why it takes so long for a debit card transaction or other payment to clear in your bank account? It’s because traditional banking still relies on outmoded methods for the sending and receiving of money. Some of these practices, particularly when sending from bank to bank internationally, still rely on the same technology used in the 1970s.
All of these problems are solved by crypto, but we should not say that the industry is perfect as it stands. There are issues to be ironed out. The most persistent criticism is that of volatility. But even that has been mitigated with solutions, like stablecoins. Above all, though, remember that cryptocurrency is just over a dozen years old (Bitcoin launched in 2009), and it is trying to replace a system, namely fiat currency, that dates back to time immemorial. There is a long, long way to go.
Indeed, crypto is going to require many things before we talk seriously about replacing fiat currencies. While using a crypto wallet is easy, there are other technical barriers in the space. Legislation and regulation are also necessary. But these are all easy to overcome. The fundamentals are sound – faster, cheaper, and more secure transactions that require no banks and do not recognize international borders. Eventually, mainstream adoption is coming, and it will probably change the concept of money forever.