Cryptocurrency: New Money or Another Financial Instrument? 加密货币：新的现金还是金融工具
With more cryptocurrency investors on board, is it time for merchants to accept cryptocurrency payment? 随着更多的加密货币投资者加入，商家是时候接受加密货币付款了吗？
Many cryptocurrency exchanges experienced high volumes due to the latest market volatility in the cryptocurrency and stock market.
Critically, new cryptocurrency investors are known to be the majority of this increased volume. Beyond speculating on prices of cryptocurrency and hedging against the traditional financial market, there are other ways for investors to use their digital assets?
Various cryptocurrency exchanges have all reported tremendous volumes over the past few weeks. The price of Bitcoin dropped from $7,900 to $3,800 in just a few hours back on 12th March 2020.
During the market crash, one of the biggest Fiat-to-Crypto exchange, Coinbase broke various traffic and volume records as users are attempting to either cash out or buy the market dip. Over the course of 48 hours after 12th March, Coinbase reported $2 billion in transactions.
High volumes on cryptocurrency exchanges may indicate that the cryptocurrency community are finding solutions to turn fiat into the revolutionary cryptocurrency.
One way of utilising cryptocurrency is through payment in retail, allowing users to spend their cryptocurrency at various merchants.
However, merchant adoption has shown far less promise than user adoption.
Why is it beneficial to implement cryptocurrency payment?
There are many benefits to add a cryptocurrency payment service at a retail store and that includes growth in the customer base.
Merchants would see an uptick in customers from those interested in the store’s cryptocurrency capabilities. Given the high percentage in the millennial consumer segment, merchants could potentially reach more of these customers. In addition, cryptocurrency payment services make a world of banking and financial transactions accessible to the underbanked community, further expanding the potential target audience.
New customers may visit merchants that offer cryptocurrency with the sole intention to buy BTC, but they often buy other necessities or impulse items like drinks or snacks. For example, one in five customers visiting a convenience store to purchase bitcoin end up buying additional items while there. The added convenience of offering cryptocurrency could even drive repeat visits.
Offering cryptocurrency services creates a new source of passive income for the merchant. It diversifies the revenue streams without requiring much additional work.
Seen as modern and innovative for offering such a cutting-edge feature at their store, merchants that choose to add cryptocurrency services will differentiate themselves from their competition and creating the expectation of offering customers technologically advanced services could drive deeper loyalty.
Merchants that implement cryptocurrency services for customers will increase their preparedness for the future. Cryptocurrency payment will enable a smooth transition into a new payment market in the future if it becomes more common for retailers to accept cryptocurrency as a form of payment for in-store purchases. If cryptocurrency transactions are the wave of the future, riding the crest now could improve a store’s readiness for that future and the subsequent consumer demand.
Future of blockchain in retail
Cryptocurrency transactions will become as much of an essential at retail outlets as credit cards have been for decades. Merchants need to get ahead of this trend and start thinking about integrating cryptocurrency transactions into their POS systems today. By embracing this new payment market and its associated technologies now, merchants will attract more customers, improving their bottom line while also preparing for the future.
Despite Satoshi Nakamoto’s claims to create a peer-to-peer electronic cash system, many entering the industry view cryptocurrency as a purely speculative instrument.
If users don’t view cryptocurrency as a means of payment, it’s no wonder that there are fewer companies building crypto merchant services than those building new blockchain projects.
But for an industry that is still considered to be in its infancy stage, the future looks good for now.
Consentium is a revolutionary chat application, which is the first to reward its users with cryptocurrency via the Chat Community Monetization (CCM) Model for virtually any group or community they create.
CCM Model allows for transactional fees to be redistributed to active members of the Consentium community. It incentivises users to create ‘ultra groups’ and cultivate strong in-app communities by creating more engaging content.