Since its inception, cryptocurrency has become a more powerful financial and payment tool that, according to Vitalik Buterin, co-founder of Ethereum, is often underestimated compared to fiat currency.
In an Aug. 24 tweetButerin explained that the crypto is not only resistant to censorshipbut that it offers the greatest convenience that is superior to other currencies in terms of international business, charitable organizations and payments within countries.
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.
Big boost to international business and charity, and sometimes even payments within countries.
– vitalik.eth (@VitalikButerin) August 24, 2022
“People continue to underestimate how superior crypto-currency payments often are, not even because of censorship resistance, but simply because they are so much more convenient. Crypto-currency payments are often superior, not just because they resist censorship, but because they are so much more convenient.“
Cash is often criticized for its long processing times and high transaction fees, which do not encourage international transfers and charitable donations. Most recently, $54 million was raised by activist groups and nonprofit organizations for Ukraine. Most of the donations were made in cryptocurrencies.
A recent study indicates that many businesses and individuals have realized the simplicity of using crypto as a payment method. The data platform PYMNTS released a report in July titled “Paying With Cryptocurrency“.
The report took into account the perception of companies with annual revenues of more than $1 billion. As part of its findings, 85% of respondents admitted that they are adopting crypto-currency payments to find and gain new customers.
In addition, Binance’s recent partnership with Mastercard to provide prepaid cards to Argentines reveals the global acceptance of crypto-currency debit cards. Importantly, Wirex rewards customers with crypto cashback for payments made with the card. The reward is also applied to those who spend various cryptos, fiat, and withdraw at ATMs.
Regardless of its merits, the price volatility, high transaction fees, ease of use, regulatory risk, and long processing time of some cryptocurrencies, including BTC and ETH, have been a concern. The average fee for a bitcoin transaction is $0.819, and its blockchain processes five transactions per second. Ethereum also charges an average transaction fee of $1.57 with 29.3 transactions per second. Ethereum’s transaction fees and processing time are expected to be significantly reduced by the introduction of Layer 2 rollup technology, such as ZK rollups. Bitcoin is also expected to improve with the development of the Lightning network.