Given the Benefits of Crypto as a Payment Method, Why is Usage So Low?

A purely peer-to-peer version of electronic cash aimed at avoiding the need to go through a financial institution seems like the ideal form of payment in the increasingly digital world. Throw in the instabilities seen in countries once thought to be rather stable like the UK – where the release of what was only billed as a ‘mini-budget’ by the Conservative government led to a near market collapse – and a peer-governed currency looks perfect.

However, that pitch in Satoshi Nakamoto’s 2008 white paper for Bitcoin is seemingly known by the few. Instead, it’s financial institutions and those who bet through investing who’ve capitalised on the potential of Bitcoin and its kin. Through heavily advertised price volatility, there are now said to be 550 million crypto owners in the world, per BitcoinNews, but so few use the coins as currency. So, why hasn’t crypto really found its feet as it was intended to?

The Many Benefits of Crypto for Payments

Bitcoin generated a close-knit community from its very inception, with miners and adopters of the crypto quickly seeing its potential. Thanks to the underpinning blockchain, peer-to-peer payments were all transparent while also being incredibly secure and upholding user privacy. Accessibility also improved on the standard banking method with anyone being able to open a cold or hot wallet and store their own crypto.

With crypto in a wallet, users would see it as protected against inflation, while its use wouldn’t incur high transaction costs, and those transactions would be incredibly fast. A truly global and digital payment system put in the hands of its users and not central banks of governments. There are some pockets of the world that have tapped into these benefits to create what is, unfortunately, still a unique selling point.

While some major companies will accept crypto payments, and others let you scan a QR code to use Bitcoin to pay, all of the benefits of crypto have seemingly been tapped into at PeerGame. Here, users just connect their crypto wallets to be able to play. You don’t need to register, the connection is secure, and you get full access to all of the in-house, table, and slot games. This approach combines the ideal ease of use and privacy elements to a tee.

Adoption Beyond Speculations Low

Countries around the world seeking to increase financial inclusion have been turning to cryptocurrencies. Nigeria, Jamaica, and the Bahamas have all rolled out digital currencies to help with this, but it’s El Salvador that went all-in in 2021 and decided to make Bitcoin legal tender. The government launched its own digital currencies app, Chivo Wallet, which also allowed the use of Bitcoin, but it was mostly shunned by the populace.

Research from Yale found that people didn’t trust Chivo Wallet or Bitcoin as they’re not anonymous, as cash is. Being a government-made app, it’s interesting to see that people didn’t even use it for transactions in dollars. It’s clear that, if people are to migrate to crypto, it’s for privacy and security, which, in this case, people didn’t think would come from using Bitcoin when tied to a government app.

In Australia, it was found that crypto is only being used as a payment method by around two per cent of adults, which is a figure reflected in 2022 data from the US Federal Reserve. In Sweden, that percentage is halved. So, even where crypto isn’t tied to a government app or service, its usage remains very niche. Much of this will be down to another trust issue, but this time in its value, due to the news invariably concerning crypto volatility.

In the eyes of the general public, Bitcoin and its fellow cryptocurrencies remain a volatile speculative investment rather than a useful form of payment. There are corners of the internet where crypto’s many benefits as a payment method are being tapped into, but overall use remains very low.