Cryptocurrencies have received mixed reactions from people around the world. In some countries, cryptocurrencies have attained legal status. On the other hand, some nations kike China have not legalised crypto transactions. In fact, a large section of people globally, are unaware of the usage of cryptocurrencies. Many people also hold themselves back from the crypto market due to its high volatility of the market. As a result of all these, to some extent, cryptocurrencies remain underrated. This is exactly what Vitalik Buterin, the co-founder of Ethereum stated recently.
In fact, Vitalik Buterin claimed that crypto is superior to other modes of payment. But unfortunately, according to him, cryptocurrencies are still greatly underrated. He also pointed to the fact that payment through cryptocurrencies is much more convenient. This convenience is especially seen in the case of international transactions.
On the 25th of August Vitalik took to Twitter to explain the convenience of crypto payments. If you wish to learn more about the matter, then this article is the perfect stop for you. Keep reading this article to know more about what Vitalik Buterin exactly said.
People continue to underrate how often cryptocurrency payments are superior not even because of censorship resistance but just because they’re so much more convenient.— vitalik.eth (@VitalikButerin) August 24, 2022
Big boost to international business and charity, and sometimes even payments within countries.
Status of Cryptocurrency Payments
The adoption of payments through crypto is witnessing steady growth globally. In fact, PYMNTS published a report in July titled “Paying With Cryptocurrency”. This report surveyed businesses with an annual income of over $1 billion. The report stated that 85% of the surveyed businesses claimed that they are using crypto payments to bring in new customers.
Similarly, more and more crypto debit cards are going out in the market. In fact, recently Binance partnered with Mastercard to announce the upcoming prepaid card for Argentinians. What is more interesting is that many of these crypto debit cards reward their users with cashback, for paying through these cards. In fact, these cards also enable users to spend all major cryptocurrencies and flat currencies. In addition, these cards also support ATM withdrawals.
Vtalik has correctly pointed out that there are certain benefits of cryptocurrencies during international transactions and charitable donations. If one does any international transaction using flat currencies, it can be a long time process, charging large amounts of fees.
Objections To Crypto Payments
However, there are numerous objections to crypto payments. One such objection is about price volatility. In addition, some cryptocurrencies like Bitcoin and Ether, charge high transaction fees and also take a long time for transactions. The average transaction fee for Bitcoin is around $0.819. Moreover, the Bitcoin server handles five transactions per second. Compared to this, Visa claims that it can handle around 24,000 transactions per second. Moreover, Visa charges between 1.4 and 2.5% per transaction.
A solution for Bitcoin’s lagging TPS anyone can find in the development of the lightning network. Ethereum is also planning for a similar design to increase its TPS.
Therefore, there are enough reasons to support the claim of Vitalik Buterin regarding the supremacy of payments through cryptocurrencies. However, the crypto networks should also upgrade themselves to increase their TPS if they want people to stop undervaluing crypto payments.