Why aren't cryptocurrencies successful as a medium of payment

[torrantz]

the reason for this is simple - too high costs for the transfer and long confirmation of the transaction. alternatively, use third-party services as lightning network, but their implementation will take time

I do agree, last time I use crypto for buying all my needs it takes quite of time but about the fee I can say that around the same as what paypal required so it's quite fair but the time required for a confirmation just a pain in the ass.
Lightning network is an interesting option for this but as you said, it need complicated set up, also need to make merchant know what theyre doing so not really effective.

[gentsy brink]

I think cryptocurrency is not suitable as a medium of payment. because of the value of cryptocurrency that high causing crypto is misused by some people. besides, not everyone has known about the cryptocurrency world and of course, it will make cryptocurrency difficult to develop. it would be better if the cryptocurrency is used as an investment because I think it's more profitable.

[jatoman]

In addition, cryptos are not still as common as a fiat currency. People who doesn't give attention to modern technology haven't heard of and maybe those who have heard about it do not have any interest.

I agree.

Consumers (buyers) won't use it until they

• are aware of it
• understand how it works
• trust it

To achieve this, there needs to be a lot invested in marketing crypto payments to consumers (and, retailers too!) as well as educational programs.  I see a similar task as American Express and Bank of America, pioneers in card payments, did in the 1960s to get consumers and retailers aware of it.

[jatoman]

Because there are big powers who do not want you me and the people to take control in our hands and so they keep making some kind of fud all the time.

There is no doubt that cryptocurrency threatens huge organizations such as American Express, Visa International, and others in the global payment industry.  I would expect such organizations to engage in a FUD (fear, uncertainty, and doubt) campaigns.

To counterbalance this, there needs to campaigns to alert consumers to cryptocurrency payments including their advantages.  Crypto payments do have a huge advantage in messaging over traditional payments companies because of modern communications such as social media, blogs, and message boards such as bitcointalk.org allow messages to quickly and easily spread to consumers.

[omfg.xekcep]

There is SWIFT for this purposes and while nobody is going to change anything in this field because it is tested and secured. I think that crypto technologies are too crude to be the core system of interbank payments. Just recollect how often we heard about hackings and vulneriabilities in crypto technologies.

[gokusenpai0302]

The global economy is nearly 80 trillion USD per year.  Payments using any type of cryptocurrency as a medium of payment is a tiny fraction of this total.

What are some of the reasons preventing cryptocurrency from being more successful as a medium of payment?

The reason behind it is simple, it is a new player in cryptocurrency world. New tokens or coins cannot cope up with bitcoin or other altcoins out there in terms of features, this will also depend on the development team on how they will handle the platform itself especially the implementation of its features. But for now, bitcoin is the widely used as medium of payment as well as other altcoin like Etherium or Litecoins.

[max6575]

with customs of decentralized as the transparency with use of returns as transmission within network of blockchain server, the token to deliver as exchanging substitution on use with trade on merchantile between partisan of business with crypto currency.

[Semen89]

This market is successful in order to earn money, but as a form of payment, they do not yet develop as quickly as we would like to wait and see.

[jatoman]

There is SWIFT for this purposes and while nobody is going to change anything in this field because it is tested and secured. I think that crypto technologies are too crude to be the core system of interbank payments. Just recollect how often we heard about hackings and vulneriabilities in crypto technologies.

Yes, I'm quite familiar with SWIFT.

It's slow, complicated, and expensive. 

For cross-border payments, SWIFT (Society for Worldwide Interbank Financial Telecommunications) often takes days to settle, requires coordination between up to four banks (Payer's Bank, Payer's Bank's Correspondent Bank, Payee's Bank's Correspondent Bank, and Payee's Bank), and has fees in the tens of USD per payment.

In contrast, crypto payments can move any value of money from anywhere to anywhere in moments for essentially no cost.  Further, anyone can use crypto payments because it doesn't require a bank account.

While SWIFT is trying to address its shortcomings, it's a 50 year-old architecture that is ill-suited to compete with crypto payments.

Here is a short read about comparing ripple with recent improvements from SWIFT: https://www.gtreview.com/news/fintech/ripple-dismisses-marginal-improvement-of-swift-gpi/

There is plenty of opportunity for innovation with crypto payments.  Not so much for SWIFT.

Nice FUD posting though.  Hat's off to you!

[qwertyup23]

The global economy is nearly 80 trillion USD per year.  Payments using any type of cryptocurrency as a medium of payment is a tiny fraction of this total.

What are some of the reasons preventing cryptocurrency from being more successful as a medium of payment?

There are various reasons on why cryptocurrencies are not circulating in the market as the main medium of exchange, such as: first, it has a highly-volatile price that can serve as a double-edged sword in both the consumer and the producer, its limited supply in the market can go inflationary on the year 2140 (since that year will be the projected year that all bitcoins will be mined out), other countries cannot adapt a technology that would support electronic payment as they are still underdeveloped and developing, and the government views bitcoin as a foreign entity that is a threat to the society.

[BlackWidow]

Because here are big powers which don't want you, me and all people to take control in our hands and so they keep making some king of FUD all the time         

[Teebass001]

It's not going to happen any time soon. Crypto is still in it infancy. A lot of obstacles has to be overcome before will can have a widespread adoption of crypto. These includes but not limited to: transaction time, cost, security and a host of other factors. I still believe in cryptocurrencies as the future of payment. But it's not gonna happen in the nearest future. Fiat still holds sway. In the meantime enjoy the speculative power of crypto. Cheers

[jatoman]

There are various reasons on why cryptocurrencies are not circulating in the market as the main medium of exchange, such as: first, it has a highly-volatile price that can serve as a double-edged sword in both the consumer and the producer, its limited supply in the market can go inflationary on the year 2140 (since that year will be the projected year that all bitcoins will be mined out), other countries cannot adapt a technology that would support electronic payment as they are still underdeveloped and developing, and the government views bitcoin as a foreign entity that is a threat to the society.

No question that price volatility creates problems for sellers (retailers, merchants, and suppliers) because it takes several days to convert cryptocurrencies into fiat and during that time the value of their payment might go down significantly.  Similar problem for buyers (consumers) because it takes several days to convert fiat currency into cryptocurrency.  Once again, during that time the value of their cryptocurrency might go down significantly.  Of course, both buyers and sellers benefit it value of the cryptocurrency going up.

A tactic that would address this, and is part of what will make the user experience a welcome one for buyers and sellers, is nearly instant conversion to and from fiat currency.  If moments before I go to the store I can purchase cryptocurrency with fiat currency by pushing a button on my iPhone app, then shop and make purchases in cryptocurrency using my iPhone app and its QR code, and then the retailer converts the cryptocurrency into fiat currency moments after the purchase, the duration is short enough that price volatility will have virtually no impact on either the buyer or seller.

[hoanggiangg000]

Cryptocurrency has been very successful in it use as a method of payment. Waves, monero and few major alternative currency and bitcoins are all being used on daily basis for transferring money across the globe.

[Aleksandr_ov]

the market is young and after 10 years you will not know the current system will all be in drohumu

[optimusprimalh]

I think it's only the matter of time. Ordinary shops don't have the equipment and often they even still don't care, because it'll be expensive to do so and not so many people would want to pay with cryptocurrency.

[jak3]

I don't know about the current market as I think Crypto Currency is the perfect tool for any business out there, It provides all the protection and security everyone requires without losing a lot of money on charges/taxes and slow transactions. Crypto Currencies are now quite young and they will take over everything in some years until then take as much as advantage you can.

[jatoman]

As of right now, cryptocurrencies are still new to a lot of people, even a lot of people in my country also have trouble going cashless payment, so it gonna take quite a while for people to get used to fully digital/cashless.

For certain there is a lot of work necessary to inform people about cryptocurrency as a medium of payment.  While virtually everyone I ask, "have you heard of bitcoin?" answers yes, virtually none of these people when I ask my follow up question, "Do you know what cryptocurrency is?" answer yes (so far, only 1 person knows and he is a computer scientist!).

I believe it will take a campaign similar in scope as what American Express and Bank of America did in the 1960s to educate the public about credit card payments.  This took over a decade before the public used cards for a significant percentage of their payments.  In fact, not until the invention of the debit card did cards surpass cheques (checks) as a medium of payment.

[txfidk]

the most important reason is the large fluctuations in the price in a short time

[Ceyebrity]

Cryptocurrency is volatile. The price is not stable yet..imagine someone buys a good worth $1000 from your site and you wake up to discover it has dropped to $900