- With it being the number one cryptocurrency in the world, bitcoin has always been the one to watch.
- But when it comes to payments, bitcoin isn’t really the one you want to use.
- Most people are driven away for other alternatives.
With it being the number one cryptocurrency in the world (as well as having a massive following from many communities across the globe), bitcoin has always been the one to watch. As many of you know, BTC was the first cryptocurrency to be created by the infamous Satoshi Nakamoto. Despite this, many people in the mainstream are unaware that there are many other digital assets aside from BTC. So when it comes to payments, bitcoin isn’t really the one you want to use.
There are several reasons for this however, the main ones include BTC being too slow due to a small block size of 1MB. However, it’s also one of the most volatile assets in the world and its value changes every second - and in quite a significant manner. One day the asset could be worth $1 where is the next it will be worth $10,000. This is a bit of an exaggeration however, many of you will understand my point.
The reason this is a factor is that it’s so hard to determine how much bitcoin you need to spend on your day-to-day transactions such as buying a cup of coffee.
Use of Segregated Witness addresses are definitely one way to reduce the effect of the block size however, the speed still isn’t up to standard. Users still had to wait 10 minutes for the transactions to be confirmed meaning that when you do day-to-day transactions such as the aforementioned cup of coffee, your coffee will go cold by the time the transaction goes through!
On top of this, the lightning network is a second layer for payments on the bitcoin blockchain. However, whereas this is a lot faster, the conditions for using it make the process a lot more difficult for the average person. For your funds to be used in payments, they will be locked and inaccessible for a certain period of time. This is along with other conditions that make most people driven away for other alternatives.
The blockchain platform for the ERC-20 tokens, Ethereum has offered a solution to all these problems. This is done through stablecoins. Stablecoins are cryptocurrencies in which the value remains stable and is all tied to a fiat currency such as the United States dollar.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!