Are Bitcoin And Crypto Asset Payment Services Truly Assisting Cryptocurrencies Grow in Adoption?
Cryptocurrencies have been expanding all over the world through their adoption as a means of payment and as a store of value as well. There are some firms such as Whole Foods and Starbucks that could start accepting Bitcoin through Flexa’s Spedn application. But is the adoption of crypto payment services helping the crypto space?
Although it is positive for crypto processors such as BitPay or Spedn to expand and bring new users to pay using digital assets. However, they might be doing more harm than good to the whole crypto market. Indeed, these payment processors could be helping merchants avoid virtual currencies.
At the moment, through BitPay and other payment processor working with digital assets, individuals can make purchases in different shops using Bitcoin (BTC) and Bitcoin Cash (BCH) – other crypto solutions accept other digital assets such as Litecoin (LTC). These processors convert the digital currency into fiat as soon as they receive the transaction. Although this is meant to increase crypto adoption, this could be slowing the spread of digital assets. Also, as we covered yesterday how about the difficulties in the cannabis space where CBD product owners are being stripped of their merchant processors and can not conduct business in a traditional fashion.
Thus, these services allow merchants to accept digital assets but eliminating the risks that are associated with virtual currencies. Bitpay, for example, says that their technology ensures that businesses receive payments without the risk of volatility, fraud or chargebacks. Although this could be related not to using digital assets blockchain irreversibility is closely linked to digital currencies, those that merchants want to avoid.
A solution for merchants could be to have the possibility to decide which is the percentage of funds that they want to be transformed into fiat. The remaining funds can still be stored in digital assets, which will allow merchants to have minimum exposure to virtual currencies without being economically affected.
Moreover, these merchants are also using a third party that will be dealing with the transaction and converting it into fiat currencies. In addition to it, BitPay does not allow merchants to share in the benefits of the blockchain technology that works behind digital assets. As these payment services expand, they also show that using these digital assets is not something easy to do or they make it look like they have many downsides.
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