People were excited about cryptocurrency in the past, they are excited today, and they will continue to be excited in the future. This is despite the current fears and market volatility, but how?
Cryptocurrencies are the future. The speed, security and access possibilities they have to go far beyond the possibilities of current money and banking. For example, those in the 3rd world without access geographically to banks, or who are making and sending very small payments (often in the cents) are locked out of the current banking system. With crypto, all they need is a smartphone. Lower costs, as well as the speed and security of payments, also attract those right at the top of the spending tree in the 1st world.
The possible applications of cryptocurrency are so immense that there is no way that they cannot become an integral part of the future global monetary system. However, in order for them to grow and reach these users, the volatility of the crypto prices must endand people must be able to use and spend them in more places, and more easily.
But what is causing this volatility and how can crypto reach its potential?
The cause of current volatility
Today’s fans of cryptocurrency are passionate about the exchanging and trading of these virtual coins. The main aim is to buy at a low price and sell for higher. Using these profits to buy other coins or transferring these funds back to a regular fiat currency.
This is the reason why crypto news is often almost entirely filled with stories such as the current price of Bitcoin, falls or rises in the price of Ethereum or predictions about future prices. However, the problem with this is not only does the focus on trading for profit create huge instability in the price, but it also takes away people, time and resources from making the currencies more usable. Such as working to encourage businesses to accept them as a payment method or building portals to bring together those who do to buy and sell goods and services.
Not only does the volatility in prices take away attention from making the currencies more usable, but it also puts off businesses and ordinary people from accepting and using them. They do not want to use a currency that might lose much of its value almost overnight. It does not make business sense and people don’t want to risk losing their hard earned money. This is why today so few people outside of those working in the crypto industry use these currencies on a daily basis to make payments, receive wages or deposit their savings.
For those who use cryptocurrencies as investment products, they want more people to start using them because having more users creates a stronger and more valuable currency. But, new users and businesses do not trust the currencies because of the volatility in prices. Somewhat of a catch 22 situation.
This is why the focus needs to change from the prices of cryptocurrencies to the usability of them. The reality is if this doesn’t change (at least to some extent) crypto will never be widely adopted by the mainstream and will remain at best a highly volatile investment product. However, if this change does happen, then those who did invest with the hope of gaining profits, will gain far more than they could ever have imagined, by being part of creating something for everyone.
A new focus
From our point of view we need not just a new focus, but a new system. Something that we would call a user based value system. One where the price of a cryptocurrency is based on the number of users it has, the number of business who accept payments with it and the number of transactions that take place each day using it.
The logic behind it is simple. The more features and possibilities a cryptocurrency has the more users and merchants it will have. That is why at Dagcoin we are continually working to make things better and more user-friendly.
Despite this public exchange is still vital to us. But, why? Because it is needed to give users and potential users access to the coin. At present Dagcoin is easily attainable via the SwipeX exchange platform. But do we want to be available on other public exchange platforms too? No, we don’t, because they only support the trading based valuation system.
Anybody can download the wallet and start holding Dagcoins. The best part is, as soon as you buy Dagcoins you can start using them straight away as a payment method. Whether that is to buy a gift for a special someone or buy stock for your shop. Every transaction you make will be recorded on the Explorer and can be easily tracked.
Dagcoin is ready to use. The only thing we still need to work on is the community, so the coin will become more attractive to businesses. At the same time, our developers are working on multiple features and solutions that will soon be ready to use. These features will be added with the sole purpose of making everything more accessible and more user-friendly. Because the more people and businesses are there using Dagcoins, the more we can enhance the system and make it more valuable.
This year has seen the prices of cryptocurrencies fall drastically. Down from a total valuation of ca $800 billion at the start of this year to a little over $200 billion today. But why is this? The highly volatile price of crypto is caused by the way it is used. Almost all those who own it today are traders, buying and selling for profit. And in doing so they create highly unstable currencies that people and businesses in the mainstream just do not trust.
For cryptocurrencies to reach their full potential as mainstream currencies used by millions if not billions of people every day they need to be more usable. The focus in the media and current owners needs to change from the price of the coins to the usability of them. Changing to a system where the price of a coin is dictated by how many users it has, how many businesses accept it and how many transactions take place every day.
Nils Grossberg is an entrepreneur from Tartu, Estonia. Nils Grossberg graduated from the University of Tartu with a bachelor’s degree in History. He is the co-founder and former CEO of Dagcoin OÜ, the software company behind the development of Dagcoin cryptocurrency and its ecosystem.