Something very positive is occurring in the crypto space. It appears that cryptocurrencies are becoming less about speculation and more about payments, which was the original goal of several available digital assets today.
Crypto - Could It Replace Standard Payment Methods?
Itâ€™s a good thing to see so many forms of crypto move deeper into payments territory over investment territory. While there are no doubt people out there that will continue to purchase bitcoin, Ethereum and other forms of crypto to potentially build their portfolios and wealth, there are also likely to be just as many people across the globe that seek to utilize cryptocurrencies for their purchasing capabilities.
As many of us already know, cryptocurrencies were initially built to be used as methods of payment for goods and services. Unfortunately, their volatility has seriously gotten in the way of their being accepted by standard retail stores. If you purchase $50 worth of materials with bitcoin for example, and tomorrow the coin goes down, youâ€™ll walk away with what youâ€™ve purchased while the store in question will wind up losing money.
Itâ€™s not always fair to the receiving party, which is why so many companies have turned up their noses at the prospects of cryptocurrency payments. Several payment platforms, however, are looking to turn things around and give digital assets a clear path towards their initial goals of replacing fiat, checks and credit cards as a means of purchasing specific items.
Among those companies are platforms like Skrill, Circle and Square, which is headed by Twitter CEO Jack Dorsey. The company has recently issued a statement explaining that itâ€™s looking to “improve money” and potentially boost cryptocurrency use throughout the globe by expanding payment networks.
Square is now establishing a new cryptocurrency and blockchain division. The company says itâ€™s very close to “making its first hire.” Primarily, the company is focusing on boosting bitcoin, which it allegedly feels is the prime cryptocurrency in the space. Overall, Square is looking to improve the infrastructure.
Naturally, Square isnâ€™t alone, and the venture will face some serious competition along the way from establishments like Jeremy Allaireâ€™s Circle organization, which recently joined hands with popular cryptocurrency exchange Coinbase to release a stable currency known as the United States Dollar Coin (USDC).
Where Circle will likely take the lead is in the space of regulation. Allaire has spoken openly that he thinks the cryptocurrency industry requires strict regulation to thrive and expand. Heâ€™s confident this will help establish blockchain as a leading form of technology and potentially put the U.S. back on the map in terms of technical leadership and innovation.
The U.S. Is Losing Out
The increase in proliferation of digital asset projects outside the U.S., the movement of companies to leave the U.S. and projects to get started outside the U.S. is getting peopleâ€™s attention.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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