There are lots of reasons why a merchant might be rather hesitant to accept cryptocurrency payments. One such reason is the fact that coins tend to become popular for a short time before fading away to obscurity within a couple of weeks. This means that what might be popular and widely used today, is unlikely to be being used in a month or two. Another main issue is volatility with even the largest and most well-known coins experiencing wildly fluctuating values on a day to day basis. By using coins that may disappear, or that may change in value from one moment to the next, merchants are taking a huge risk.
Despite this, a report from Coin Telegraph stated that 75% of US consumers would like to have the option to pay for products and services using cryptocurrency. This means that whilst businesses are not keen, public demand will force them to adopt cryptocurrencies at some point in the future. The biggest question that needs to be settled however is that of how to incorporate digital currency into traditional payment systems. In this article, we will take a look at whether Bitcoin or Altcoin is more suited to this role.
As the main cryptocurrency in the market, BTC enjoys the largest market cap and the most well-known name. It is so popular that it is already being used by around 4000 shops around the world. Bitcoin is a good choice for those merchants that want a coin with a solid reputation, years of operation, and a large pool of active users. With around 28 million BTC wallets in existence, which is a very large number of users, it makes BTC by far the most dominant coin.
An altcoin is basically any cryptocurrency that is not Bitcoin. These can include Ethereum, Litecoin, Ripple, Dash, Monero, etc. Whilst Bitcoin is volatile with long transaction times and fees, most altcoins provide a much faster and cheaper alternative. For example, the average BTC transaction is around $0.72 per transaction, whereas Dogecoin or Bitcoin Cash are just a fraction of a cent for each transaction. Confirmation times are also far quicker with Altcoins and for this reason, it is a more practical and efficient approach for merchants and users.
So which one should merchants opt for? The answer is both, because in a market where popularity and prices wane, consumers should have the option to pay in a currency that they choose. The businesses that will survive well into the 4th industrial revolution, are the ones that are able to offer optimum flexibility to their clients, especially when it comes to making cheap and quick digital payments.
E&S Group can help you every step of the way of launching the cryptocurrency-related enterprise from marketing to tokenomics. Contact us on email@example.com