CAFECOIN’S PLANS TO OVERCOME THE ROADBLOCKS TO WIDESPREAD CRYPTOCURRENCY ADOPTION
How will CafeCoin Overcome the roadblocks inherent to widespread cryptocurrency adoption? Truth be told, there are myriad benefits cryptocurrency offers its users, but its full potential has yet to be unlocked, even to this day. Nine years after Satoshi Nakamoto unveiled Bitcoin to the general public, most people still see cryptocurrencies as a digital commodity that is meant to be invested in, but not used as an alternative mode of payment. Even before the sudden dive of many cryptocurrencies’ valuation, a lot of people didn’t really consider using cryptocoins to pay for products or services, although there were, and still are, some places that accept cryptocurrency as legal tender.
Though they mostly only accept the more well-known coins, the fact remains there are companies that accept cryptocurrency as payment. So why hasn’t the rest of the world followed suit? If cryptocurrency offers so much to users, why isn’t everyone using it? Well, there are actually many reasons. Different experts have identified different roadblocks, and there have been groups that tried to create a cryptocurrency in order to bypass these. The CafeCoin Foundation has identified several factors that stop cryptocurrency from being widely adopted and has created certain processes in order to overcome these.
CRYPTOCURRENCY INDUSTRY TODAY
These days, there are already many cryptocoin ATMs, consumer marketing, hardware wallets, and significant amounts of mainstream media buzz surrounding cryptocurrency. Despite all of that, not a lot of people are even willing to use it as a medium of exchange. Most people use cryptocurrency as a digital version of gold. Despite the efforts of other coins that have tried to target specific roadblocks to adoption, none of them really targeted more than one. The CafeCoin Foundation has listed five factors as to why cryptocurrency hasn’t achieved wide-scale adoption:
1. CRYPTOCURRENCY NEEDS TECHNICAL KNOWLEDGE IN ORDER TO FULLY OPERATE
Possibly the biggest reason why cryptocurrency isn’t being used in most brick-and-mortar stores is because its utilization requires a certain amount of technical knowhow. What people want when it comes to mobile payments or alternative modes of payment is ease of use, and most of the coins that are in the market today do not have this. Even in the mobile payments sector, users are mostly people of the younger generation, so one of the things that a cryptocurrency needs to ensure when trying to tackle this roadblock is to make sure that using the coin in question needs to be so easy even people of the older generation are willing to use it.
2. HIGH TRANSACTION FEES
When two users of cryptocurrency wish to transact, they need to pay certain fees in order to record their transaction in the blockchain. Now this is all well and good, but in most cryptocurrencies today, the transaction fees are so high it’s almost not worth transacting. Of course, it still depends on the coin, but usually, coins can cost up to a quarter of the amount being transacted just for the recording on the blockchain. The number is quite frankly staggering, and just by hearing this alone, it would turn most people off of trying to use cryptocurrency.
3. LONG PROCESSING TIME FOR TRANSACTIONS
Another factor that turns people off of cryptocurrency is that transactions can take a very long time. Cryptocurrency, in and of itself, is very complicated. This is one of the reasons why it is so secure, and that hackers would most likely lose more than they would gain if they tried to hack a cryptocurrency. Cryptographically secured accounts are no joke, and when it comes to solving the algorithms needed to change something on the blockchain, the difficulty just increases. This is one of the main reasons why transactions can take a long time to settle, sometimes even reaching many hours to complete.
4. PRICE VALUATION IS VOLATILE WITH LITTLE POTENTIAL FOR APPRECIATION
As most people who have made use of cryptocurrency have come to accept, price valuation is far from stable. Changes in price for most coins can change seemingly at the drop of a hat, and there’s really nothing anybody can do about it. This feature of volatile valuation makes it a great vehicle for investment, but another facet of it is that there is little potential for valuation. The more people in a certain network, the harder it is going to be to get more of that coin, despite the number of people who mine it. This factor alone makes most cryptocoins a bad currency, which makes it understandable that not a lot of people would be willing to transact by using it.
5. LIMITED ADOPTION BY BOTH MERCHANTS AND CONSUMERS
All of the previous factors, and others that weren’t mentioned, lead to this roadblock. Very few merchants are willing to accept cryptocurrency as a ways to purchase their goods, and because of this, very few consumers are willing to take up cryptocurrency. It is understandable because what reason would they have to convert their fiat money into cryptocurrency, when most of the shops they purchase from don’t even accept it? Another reason for this is that most cryptocurrency don’t have much of an incentive structure. This means not a lot of users are given reason to go for a cryptocurrency aside from the inherent benefits most coins already have.
CAFECOIN: A TRUE UTILITY TOKEN
This is what CafeCoin aims to be—a true utility token that is able to bypass all the aforementioned roadblocks, and become the first cryptocurrency that achieves widespread adoption. They would also pave the way for other cryptocurrencies, and soon, cryptocoins might become the standard mode of payment for goods and services. The Foundation has also though up of a number of ways in order to directly address the factors mentioned above.
Building corporate relationships – The Foundation first aims to do this with the high-margin retail coffee sector. They plan on offering incentives for both merchants and consumers, which will then ensure further adoption of their coin.
Making use of a unique payments architecture – CafeCoin will make use of an innovative payment structure with blockchain technology. They have thought up of certain processes that will also make transaction processing time significantly lowered, and the transaction fees would be noticeably reduced as well.
Simplifying payment process – By doing this, The Foundation anticipates users will have quick access to coin liquidity. CafeCoin will have an accompanying mobile application that will be utilized not only by consumers, but also by merchants, as it can operate together or independently of existing point-of-sales solutions.
Providing economic structure – This is done to address the issue of volatility, and The Foundation aims that CafeCoin will have a relatively stable valuation. CafeCoin will also utilize mathematical formulas in order to help in stabilization, as well as protect from inflation.
Ensuring customer transactional privacy – Consumers will be able to share their transactional history to merchants in return for personal promotions or other incentives. CafeCoin will ensure the consumer’s history will only be revealed to the people the consumers choose.
Easy access to crypto exchanges – CafeCoin users will be given accessibility to crypto exchanges so they are easily able to easily exchange their fiat money to CafeCoin, vice versa, or convert CafeCoin to and from other coins as well.
These are just some of the things CafeCoin has in store for their future adopters and users. To get all the details, check out their white paper on their website at Cafe-coin.com.