The co-founder of the Ethereum Network Vitalik Buterin said on Twitter that people underrate the capabilities of cryptocurrencies in comparison with fiat money. He says that some payments in crypto are more convenient. For example, donating to various charities, making other forms of international payments, and conducting some business activities.
It is a message that was sent amidst a variety of developments in the crypto industry. The whole Ethereum network is preparing for the upcoming merge with the Beacon network which will change the consensus mechanism to Proof-of-Stake making transaction times slightly faster (by about 10%). Another important development is that Canadian regulators decided to limit all crypto purchases in the country except Ethereum and 3 other coins.
While the availability of cryptocurrency-based payment systems has been on the rise, it is still early to talk about wide adoption. The moment is also not the best to propagate the idea of switching to Bitcoin as the whole market is experiencing one of the longest slumps in recent history.
Also read:Negative circumstances aside, we do have many interesting changes in how corporations approach cryptocurrency adoption. We are not surprised to hear that many financial institutions like Forex and Futures brokers or online casinos accept cryptos. However, a large number (over 85%) of corporations with annual revenues over $1 billion report that they use crypto payments to acquire new customers.
International charitable donations are faster and cheaper when people use cryptocurrencies. One of the most apparent examples is the campaign to fund the Ukrainian war effort against invading Russia. The defending country managed to gather over $54 million received primarily via crypto payments.
The problem is, as usual, in volumes. While crypto works well for large transactions, the throughput is nowhere near what VISA can handle. For comparison, VISA can process over 24 thousand transactions per second. Ethereum handles 30 on the best day.
The industry is working toward a utility-focused solution. The lightning network should solve many issues, but we still have a long road ahead. So, no, Vitalik, people do not underrate the usefulness of crypto yet.
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