We have come a long way from the days of bartering eggs for wool. Payments have and always will be an intricate part of humanity and civilization as a whole. Someone having something we want, or vice versa will always require a trade of some kind.
As technology advances and more ways to spend and earn money become possible, we have to keep up with the times. It is to be noted, while technology has advanced incredibly over the last 100 years, the money transfer industry has been slow to catch up.
Traditional Banking Payments
Let's forget the days of bartering for a second, and jump straight to physical money with economic markets. If you wanted to buy some milk from your shop down the road, you would hand them a note or coin and get your change, that would be the end. As the internet began moving towards the mainstream, the method for payments had to evolve.
In its next step of evolution, payments made the move to online banking or wire transfers. You were now able to make payments online and transfer globally. The issue arose when the fees and speed attached proved to be a problem.
Traditional banking may allow for global payments and transfers, but the wait time for their processing can take from 3 to 5 business days. Don’t forget about the fees either, for making payments, withdrawing money to make payments, and especially when transferring globally. While it was a great start, it wasn’t even close to perfect, and that's where crypto entered.
Better Payments With Cryptocurrency
Cryptocurrency as a whole came through the introduction of blockchain technology as enforced by the creation of Bitcoin. A whole new way of making payments, simultaneously secure and transparent, with some added benefits. We go too much into what is cryptocurrency or blockchain technology, but they are revolutionary.
Cryptocurrencies are international currencies, sent through networks known as blockchains and also verified through a decentralized and digital ledger. People were now able to send money and confirm payments in a matter of minutes. The fees were insignificant, as they weren’t designed to keep a whole bank afloat, but rather to pay miners for validating transactions.
The decentralized and autonomous manner of cryptocurrency was changing the world, as still is today. There is still a lot to be done when it comes to mainstream adoption, but we have made leaps and bounds still 2009 when Bitcoin was created. We have seen great support from celebrities and leading corporations like PayPal, Microsoft, and Telsa.
The Future Of Cryptocurrency Payments
Cryptocurrency through the eyes of governments is still blurred, fearing they will lose control of their people and their money. Some governments have shown a positive stance towards crypto, some being El Salvador and America. President Joe Biden signed an Executive Order on crypto intending to showcase “U.S. competitiveness and leadership” in the crypto industry.
This show of support has indicated to many companies within that country that they have the ability and support to freely explore crypto. Apple has been one American company to recently explore cryptocurrency through their hiring of cryptocurrency experts and corporate statements. They have stated they are “watching crypto” and it’s definitely “something that we’re looking at.”
El Salvador is another country that is excelling in government adoption, with the president publicly stating they are buying crypto, more than 1,801 Bitcoins, as well as adopting it as legal tender. This government support has industry-leading companies like Mcdonald's accepting Bitcoin as a payment method. We are at the forefront of the future of cryptocurrency.
Why It Matters
The world is evolving, and with that, we as a human race must evolve with it, the concept of payments isn't going anywhere. We need to make payments easier and more accessible to keep up with the ever-growing industries. With the help of support and adoption, crypto can be the solution we need.
As more companies, celebrities, and countries begin to accept cryptocurrency, we are excited to see the next step in evolution crypto takes. We hope this piece better helped you understand the history of payments and why cryptocurrency is important for the future. Check out Oobit to learn more about blockchain technology and buy some crypto today.
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