Gaining mainstream adoption has been a significant roadblock for the cryptocurrency industry. Most people shun these currencies due to their volatile and speculative nature. However, a new report by CryptoRefills shows there may be light at the end of the tunnel.
Mainstream Adoption Of Crypto Improves
It has been a very long journey for crypto assets like Bitcoin regarding mainstream adoption. Although these assets now gain more media attention, they are still the subject of scrutiny, misinformation, and bias. That is not entirely surprising, as everyone will always shun a form of money that neither requires nor allows intervention by banks or governments at first. In addition, consumers have not seen the merit of paying in crypto over using more traditional payment methods.
However, it would appear there is a change on the horizon. The new report by CryptoRefills indicates more people see cryptocurrencies as a way to pay for goods and services. An essential step on the path to gaining more widespread mainstream adoption, but there is still plenty of work to do. Making Bitcoin or other assets a standard payment method will not happen overnight despite many efforts to bring more legitimacy to this industry.
The report confirms 45.3% of respondents see crypto as an excellent way to buy goods, products, and services. Moreover, just under 40% think these currencies can become a means for payments, although not everyone is convinced this will be the case. Surprisingly, nearly 40% claim that paying with crypto for goods and services “solves a problem’. What that problem may be, remains unclear, yet it marks an exciting development.
One obvious thing is how crypto users are not necessarily willing to pay more for goods and services. More specifically, they acknowledge that accepting crypto payments can be a hassle for merchants. However, the transaction costs are much lower than dealing with payment cards or cash. It doesn’t make sense to make people pay extra when using crypto when payment processors can guarantee the fiat value of goods and services. Over 11% of respondents will not pay extra for the “privilege” of using cryptocurrency.
What Comes Next For Crypto Payments?
A survey like this one can indicate whether mainstream adoption of cryptocurrencies will happen soon. However, the survey reached 290 unique participants, most of whom are labeled as “crypto shoppers” indicating they already have a keen interest in cryptocurrency. The data from this research may need to be taken with a few grains of salt, as mainstream consumers and crypto shoppers are two very different target audiences.
Moreover, there is still work to do to make the acceptance of cryptocurrencies even remotely appealing. Although several payment processors are capable of providing a seamless experience and integration, there is no real “incentive” for merchants yet. As they do not see the need to implement a payment method only a few people will use, mainstream adoption of crypto payments will remain a niche market for the foreseeable future.
One last intriguing observation in the report is how Bitcoin remains the preferred payment method, despite its slow confirmation times and relatively high fees at times. Ethereum and Litecoin gain momentum but stay behind by a significant margin. Etheruem and several ERC20 tokens see less adoption in shopping due to high gas fees and lower acceptance.