CAFECOIN OFFERS THE SOLUTION FOR TODAY’S CRYPTOCURRENCY INDUSTRY
Most people already know that the cryptocurrency sector has definitely seen better days. Despite its massive potential for utility and functionality, a lot of people usually use cryptocurrency more like a digital version of gold, rather than an alternative unit of exchange. Cryptocurrency’s decentralized ledger is a unique advantage afforded to its users, and it gives them almost unparalleled security when it comes to their finances. When utilized properly, crypto coins can virtually change the way we pay for services and products, and if people are educated enough on how it works, they will also realize just how much they would gain from using crypto. Yet the cryptocurrency industry still fails to maximize it’s market reach. CafeCoin stands to offer the solution.
Read More: Cryptocurrency: An Explanation for Beginners
The CafeCoin Foundation realized that lack of detailed knowledge about cryptocurrency is one of the reasons why not a lot of people are using it to its fullest potential. There are other factors that contribute to the low adoption rate, but it mostly stems from this. CafeCoin’s answer to this is creating a system where they would incentivize people to make use of their coin, and also make it easier for non-technical users to utilize cryptocurrency. They designed their whole network to be beneficial to users in a commercial setting, and they spared no resource doing it.
Before talking about exactly how CafeCoin can be beneficial to their subscribers, we’ll talk about the current lay of the land in the crypto industry. Ever since Satoshi Nakamoto introduced the original crypto to the world, Bitcoin, thousands of people have discovered the utility of cryptocurrency, and then tried to introduce their own altcoin. However, despite the multitude of fully decentralized and cryptographically sealed coins released for the public’s use, not a single token has even received significantly widespread adoption with traditional brick-and-mortar stores. Even online merchants, who benefit heavily from mobile payments, haven’t acknowledged cryptocurrency all that much.
This holds true even after all the mainstream media coverage that cryptocurrency has received. Despite hardware wallets, cryptocoin ATMs, and other visible marks of cryptocurrency, not a lot of people have made use of cryptocurrency’s full potential. A lot of people perceive crypto as a different set of digital assets that receive highly speculative valuations, and because of this, most of today’s popular cryptocurrencies are traded with an extreme level of volatility, and that prevents them from being able to provide commercial and transactional utility to the people who adopt them, namely retail stores and their customers.
Because of this misconception, these coins are behaving more like a digital version of gold, or some other store of value, instead of units of value that can be used as payment for goods and services. Although there have been certain coins that have attempted to address the prevalent issue of volatility, namely Tether, they did not think of how they would address the other barriers to adoption. Because to be frank, if the only issue were volatility, this problem would have been solved long ago. But most coins didn’t even think of how to lower transaction wait time, how to make it easier for users to make use of their coin, and others.
All in all, these shortcomings have accumulated and result in the current cryptocurrency scenario. So far, The Foundation has identified several reasons as to why crypto isn’t as widely-adopted as it should be. Here are the five main reasons why this is:
- Complicated access
Generally speaking, cryptocurrency is not easy to make full use of. Most coins have convoluted ways in using their tokens, and most people who would want to use a way to pay for their purchases don’t want to study up on something, just so they’d be able to use it. Users who are not well versed in the technology of cryptos typically have a difficult time in making use of their coin, which considerably lowers the cryptocurrency’s utility. Different cryptos have varying levels of difficulty, but when people hear that a certain coin is difficult to use or earn from, that word will spread, and most people wouldn’t want to risk investing in crypto altogether.
- Expensive fees
Although cryptocurrency does not employ processing fees, like debit cards or credit cards, when transacting with cryptocurrency, users still need to pay exchange and transaction fees. The more people on a network, the harder it is to change information on the blockchain, and therefore the fees also skyrocket. Very few cryptos have come up with an answer to this, and those that did overcome this blockade to mass adoption still failed to find a solution to the other factors.
- Long transaction settlement times
Similar to the previous factor, the more users or transactions there are, the longer it takes to validate a transaction. A lot of people have already accepted this as something that is part and parcel of cryptocurrency and have given up on finding a solution. Some settlement cases can even take multiple hours, which makes it almost useless as a way to pay for your purchases in a retail store.
- Volatile prices
The valuation of most coins usually go up and down without any warning, and within a span of a few days, and sometimes even a few hours. Because of this, not a lot of retailers are willing to accept cryptocoins as a way to purchase their wares.
- Limited adoption
Because of the combined previous factors, not a lot of consumers or merchants want to go with cryptocurrency. If customers don’t find a use for it, there is very little reason for merchants to adopt a coin. And if merchants aren’t willing to accept cryptocoins, there’s no reason for consumers to invest in it either.
The CafeCoin Foundation plans to create a system that would be able to satisfy the global demand for a cryptocurrency that is usable in a commercial retail or wholesale setting. Their cryptocoin will also address every single factor mentioned above, and they do this by adopting certain protocols and processes that are beneficial and will also implement some of their own original procedures. Here are just some of the ways that CafeCoin plans on addressing the aforementioned blockades to adoption.
Build relationships – CafeCoin plans on creating corporate relationships with retailers, starting with the high-margin coffee sector. They will offer incentives for both merchants and consumers so that using CafeCoin will be beneficial for both.
Create an innovative payments procedure – The Foundation will implement a unique payment architecture, which makes use of blockchain technology in order create high-volume, and near-instantaneous transactions that also comes with minimal fees.
Simplifying processes – All the processes and protocols that are imbedded into the CafeCoin network will be designed to be easy to use and fast. CafeCoin plans to make use of an accompanying mobile app that will also provide access to liquidity, which also has the ability to operate by itself, or alongside already existing point of sales systems.
Providing secure economic structure – CafeCoin will create a secure economic structure that will minimalize volatility. CafeCoin will also provide its users with the ability to share transactional information to merchants for additional discounts and other promotions.
This is barely scratching the surface of CafeCoin’s plans for their users. For a full accounting of what they plan to do, check out their white paper on their website at cafe-coin.com.