In the past few years, blockchain technology has emerged in the public eye with the rise of cryptocurrencies. A digital currency built with cryptographic protocols to secure transactions, cryptocurrencies were introduced to the world through the ups and downs of Bitcoin. And while blockchain was first known as the record-keeping ledger behind Bitcoin, it has recently made its way into mainstream finance and investing, with companies implementing its technology into their everyday work. As the Founder of Olitris Technologies, Nando Caporicci is a proprietor, business owner, and expert in Bitcoin mining hardware. He takes the time to discuss the growing prevalence of cryptocurrency.
Blockchain technology is completely decentralized rather than stored in one location. What’s this mean? The powerful authorities that regulate and control individual users don’t have the same control. In fact, the lack of a single authority makes the system fairer and more secure, utilizing innovative protocols across a network of nodes to validate and confirm transactions and record data. This also eliminates fees attached to central authority systems—presenting the use of blockchain as a cheaper alternative.
The Rise of Cryptocurrencies
According to Nando Caporicci, the rise of cryptocurrency in the mainstream market was led by Bitcoin. And since, other coins like Ethereum, Ripple and Bitcoin Cash have made a significant splash in the market. In addition, smaller coins—ones that trade at much lower prices—have popped up too. Although appealing to investors, cryptocurrencies have been presented as dangerous investments because they’ve been known to be volatile. And with the global economy expanding and moving toward a more digital economy, a younger generation of investors have stirred up interest in these coins.
Why People Use Cryptocurrencies
Cryptocurrency payments are used in a wide variety of ways today. One of the most significant reasons people use them is because they can avoid credit, merchant, checking account and bank fees. Cryptocurrency payments have some of the lowest fees—and are seen as the closest to cash in terms of fees paid. In addition, crypto is popular because it can easily be used internationally without waiting or paying fees. All that’s needed is an internet-connected device and a payment can be sent or received within seconds. This is also beneficial for ecommerce stores who accept cryptocurrency. Now, merchants can offer their customers more payment options and avoid transaction fees.
Nando Caporicci on the Growing Market for Cryptocurrency
With more vendors and merchants accepting crypto pay, the market is growing significantly. Payment gateways like Bitpay are possessing billions of transactions per year, serving millions of vendors in hundreds of countries. This means as consumers continue to move toward digital payment methods, merchants are picking up on the trend and providing them with a way. Payment gateways are even partnering with stores and companies to promote cryptocurrency payments just like credit card companies have done over the years. This is helping merchants attract new business, offer additional payment methods and present themselves as affiliated with a trusted gateway.