Quote from: torrantz on August 10, 2018, 01:23:02 AM

Quote from: jatoman on August 09, 2018, 11:48:59 PM

Quote from: sapnu on August 09, 2018, 11:33:28 PM

Quote from: jatoman on June 13, 2018, 04:15:25 PM

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?

Probably, the problem is the market volatility of cryptocurrencies. Fiat as a medium is having a stable market value which us an important aspect in order to promote equality. So since the market value of most cryptos are lacking stability, making it a medium of payment won't be as effective as the functionality of usd and other regular currencies.

No doubt, extreme price volatility is a significant obstacle.

All fiat currencies are volatile in that their values change constantly. Very few fiat currencies experience extreme price volatility.

So, for a cryptocurrency to be widely used it must avoid having extreme price volatility.

And it can be avoided through use the blockchain with the best scalability ever. It will be easy to liquidaty if the blockchain can deliver it in a second without a lot of requirements. It cna be done easily to avoid the extreme volatility in the xrypto market.

I agree that the best tactic to avoid exposure to extreme price volatility is a cryptocurrency payment application capable of converting from fiat currency to crypto and from crypto to fiat currency in just a few seconds.

Consider an application that works like this.

1. There is a smartphone application that is a closed-loop payment system.
2. Like all closed-loop payment systems, consumers upload fiat currency from their bank accounts or credit cards to this smartphone application.
3. The smartphone application holds this fiat currency until consumers are ready to buy something from a merchant that accepts a specified cryptocurrency.
4. When it is time to make a purchase the smartphone application converts the fiat currency into the cryptocurrency.
5. At the point of sale (POS), consumers use the smartphone application to display QR Code (or, barcode) that the merchants' POS systems can read.
6. The POS system registers the sale and accepts a crypto payment from the consumers.
7. Merchants now have cryptocurrency they can spend.
8. Or, merchants can convert this cryptocurrency into fiat currency

The amount of time between #4 and #8 can be a few seconds. The result is neither consumers nor merchants are exposed to price volatility.