Can cryptocurrencies gain mainstream acceptance?
There has been a significant amount of attention paid to cryptocurrencies by the media, but do these currencies truly represent the alternative payment option of the future?
Despite the hype, most people who own cryptocurrencies are not using them to purchase goods or services. Instead, they are leveraged as an investment vehicle. Even with a greater number of outlets willing to accept cryptocurrencies as payment, utilization is not widespread amongst consumers.
Partly due to a lot of misunderstanding and suspicion. Most consumers do not understand what a cryptocurrency is, what tokens are, what the value is based on, or how to own them. In addition, although there are efforts to minimize this, there are also legitimate environmental concerns about the massive carbon footprint of mining cryptocurrencies like bitcoin.
Historically, Bitcoin’s value has been quite volatile. In a single day in May 2021, the price of Bitcoin plunged by about 30% before recovering to be down about 12%. No one wants to buy a coffee with a currency that might purchase 10 coffees the next day — or half a coffee the following day. The reluctance of consumers to actually spend crypto is a real challenge when it comes to gaining mainstream acceptance.
As alternative payment options and digital currencies continue to gain in popularity, the crypto market will begin to see more challengers emerge that are more easily understood, frictionless, and widely available. These alternative payment options are not as volatile, nor do they face market fluctuations based on non-market factors, like celebrity tweets.
Of course, there is one payment option available today that does not face these obstacles yet does not get the same attention despite representing greater value and opportunity for consumers and retailers alike.
What is this currency?
With over $200 billion in loyalty points available to be spent in North America annually, points are the one alternative currency that millions of people earn and have available to spend today. Loyalty points present a more stable option compared to cryptocurrencies because they hold a clearly defined value via an established dollar-to-point ratio, and they are backed by payment processors, credit cards, and branded loyalty programs. They do not add to environmental degradation and can be used like any other payment option to purchase goods, services, and even coffee.
And that is rewarding for everyone.
Engage People Inc.