Future of Payments: While Bitcoin may bring about a shift in payment systems, it's not expected to fully materialize in 2022
The world of cryptocurrency is undergoing a significant shift, with a new generation taking the reins. This generation, comprising teenagers and 20-somethings, often referred to as the Web3 and metaverse generation, is poised to drive the mainstream adoption of crypto.
Unlike previous generations, this one does not require education about cryptocurrency. Their familiarity with the digital realm is significant, making them well-equipped to navigate the crypto space. This generation's financial activity and roles in companies are key factors in the long-term crypto adoption timeline.
The shift towards mainstream crypto adoption is not expected to occur within 1-2 years. Instead, it is a generational move, with the Web3 and metaverse generation set to play a substantial role. Their influence is expected to be transformative, contributing to the financial activity and roles in companies within this space.
One of the critical issues for financial usage to become mainstream in the crypto space is trust. However, the Web3 and metaverse generation's comfort with digital transactions may help alleviate these concerns. As they become more financially active and assume roles in companies, their presence could help build trust and foster confidence in the crypto world.
The crypto industry is not limited to Bitcoin exchanges or NFT marketplaces. Numerous companies active in this space include those operating in decentralized finance (DeFi) platforms, blockchain-based gaming infrastructure (GameFi), cryptocurrency mining, asset management, smart contract platforms like Ethereum, and crypto investment banking. For example, Galaxy Digital engages in asset management, trading, investment banking, and crypto mining, while Ethereum operates as a decentralized platform for smart contracts and dApps supporting DeFi ecosystems.
Payment companies are also playing a significant role in the crypto industry. They are offering fiat payment, banking, and treasury services to crypto-native companies. Some payment companies are acting as intermediaries for banks, particularly smaller banks, facilitating the interaction between traditional finance and the crypto world.
Merchants are expressing a demand for more crypto payment options to encourage consumer spending. However, payments are expected to be one of the last areas affected by the crypto revolution. Moving crypto from an investable asset to a form of payment is a key step towards increased uptake for crypto.
Despite the promising developments, the crypto space is not without its challenges. The Bitcoin 2022 conference, held in Miami, highlighted concerns about bad actors, hacking, and the challenges of KYC (Know Your Customer) in the crypto space. These issues, while concerning, are not insurmountable and are being addressed by various stakeholders in the industry.
In conclusion, the Web3 and metaverse generation is poised to drive the mainstream adoption of cryptocurrency. Their familiarity with digital transactions, comfort with risk, and comfort with the decentralized nature of crypto make them ideal candidates to lead this change. As they become more financially active and assume roles in companies, their presence could help build trust, foster confidence, and drive the crypto industry forward.
Read also:
- Electric-powered vessels take to the waters of Maine
- Elon Musk accused by Sam Altman of exploiting X for personal gain
- Comparing the value of top electric scooters: Kinetic DX versus Bajaj Chetak versus TVS iQube - Which one offers the best bang for the buck?
- American Eagle's risque promotional effort featuring Sydney Sweeney leads to the brand being categorized as a 'trendy stock' among teenagers.
