What kind of cryptocurrency is the payment tool that people expect?

When everyone is saying that bitcoin is difficult to become a "payment tool", the most popular example is that it is unrealistic to buy coffee with bitcoin, because bitcoin transfer is slow, the handling fee is high, the currency price is unstable, and so on.

Many people joked that if you buy coffee for 30 yuan, you may have a fee of more than 30 yuan, plus you can't wait there for more than ten minutes. If you block a bit, you have to wait for more than one. It’s too unreasonable to get coffee in an hour.

The initial cryptocurrency (the altcoin) appeared to solve these problems with Bitcoin. For example, the cheaper block headed by Litecoin confirmed faster altcoins, such as some PoS currencies, and later BCH. Block attempts, the emergence of lightning networks, etc., are all aimed at solving this problem.

In fact, long ago, people no longer discussed "Bitcoin can buy coffee", because when Bitcoin rose to a price of tens of thousands of dollars, it would not make much sense to discuss such a discussion. Just as you will not see someone holding a gold bar to buy soy milk, the market value of bitcoin has exceeded the market value of billions of dollars. For the currency definition of bitcoin, "circulation means" cannot be equated with "payment tools." "But many people have mixed these two concepts together."

So can cryptocurrency be used as a payment tool?

Can an anonymous (possibly anonymous), low-transfer cost, fast transfer, stable currency, and decentralized cryptocurrency not exist?

Let's discuss it one by one.

First, can be anonymous

This is the core reason why people use cryptocurrencies.

Without this precondition, there is no need to use cryptocurrency.

Before the emergence of Bitcoin, password punk is pursuing how to use technology to protect people's privacy. In the old cash era, people actually had no such concerns, because the cash did not write names. However, in the era of the late bank card, and the era of credit cards that the United States and other countries began to popularize very early, people began to lose the privacy of consumption. Where have you been, what you bought, what movies you watched online, what books you bought, what apps you downloaded on your computer and mobile phone, etc., a credit card bill that can see a person's behavior and life.

And we completely lose this privacy is started from the mobile payment that everyone loves very much. Your WeChat record can track all your consumption behavior.

This is what password punks don't want to see, so they did some "electronic money" attempts, but it was not successful until Bitcoin appeared.

Bitcoin is indeed decentralized and anonymous, but as I said before, Bitcoin has many shortcomings as a payment tool. Perhaps Bitcoin was born not to let you buy coffee.

Fortunately, most of the cryptocurrencies can be anonymous, including ETH, EOS, BCH, LTC, and already stabilized coins such as USDT.

Second, the transfer speed is fast

The bull market will be blocked, and the market will be blocked. It is already the daily life of Bitcoin.

In the last round of bull market, ETH, which has become hard currency like Bitcoin, has not been spared. It can be said that as long as it is a PoW mechanism, there is a block size limit, as long as it is blocked by someone. The description of "Million TPS" can only appear in the PoS mechanism, so if you want to satisfy this function, then PoW is not a good choice.

This is also a problem that the USDT under the Omni agreement often encounters. When the two hard currency BTCs and ETHs are blocked, everyone will find that the USDT is actually blocked.

Third, the transfer cost is low

Under the PoW mechanism, the fee is a crucial part, especially after the block rewards are halved again and again, the incentives for the miners to continue to protect the blockchain are left.

The transfer costs of DPoS or PoS mechanisms such as EOS and TRX are obviously lower than those of the PoW mechanism because they “transfer” costs to all holders, not to the originator of the transaction. So why is the “zero fee” possible? Because all the money holders share the cost of “inflation” to maintain system stability, not through fees.

So if you want to reduce the transfer cost to zero, then the public chain of the PoS mechanism should be a better choice.

Fourth, the value of the currency is stable

Needless to say, this is naturally a stable currency.

There are two main types of stable currency, one is that some people are familiar with credit based on a certain issue, such as USDT, PAX, USDC, etc., and the other is issued through smart contracts, such as Dai.

So so far, it seems that the USDT issued on EOS or TRX will be the best choice as a "payment tool", but this is only the current view.

Although the USDT does have a first-mover advantage and a market size, the USDT has some inherent shortcomings compared to the officially recognized stable currency such as PAX. Just as the same currency is still the absolute exchange leader, but the valuation is still not as good as Coinbase (nearly 10 billion US dollars) and Bakkt after the maturity of the future (not yet on-line valuation is nearly 1 billion US dollars), when you are still When the corners of the world are crawling, you can't be in line with mainstream finance, but if you have reached the scale of tens of billions of dollars or even hundreds of billions of dollars, and you want to get more money, then you have to In line with mainstream finance.

In fact, in this respect, I feel that the currency is quite free and easy. Anyway, there is no way to get a license from China and the United States. It is better to do whatever you want, All in Crypto.

To sum up, the cryptocurrency that can be used to buy coffee does not exist? Certainly exist. A cryptocurrency with stable currency, faster transfer, and popular App will become the first choice for people to pay in the future, then this coin will be Facebook's coin (laugh..

Of course not. If the currency sent by Facebook is bound to the account, it will lose its anonymity, so it cannot be called cryptocurrency. Moreover, the stable currency issued by a certain entity (company or team) based on its own credit does not have the necessary attributes of “decentralization”.

Losing anonymity and losing freedom, there is no need to pursue cryptocurrency.

The currency is quite good, why bother?

And William believes that the best cryptocurrency as a payment instrument will be: by locking Bitcoin into a smart contract, the price is against the stable dollar of the dollar.

All of the above are discussing "payment tools", and as a payment tool is only part of the huge ecology and possibilities of cryptocurrencies.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!


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