Cryptocurrency Winners and Losers

Suppose you've been in South Australia lately. In that case, you might have noticed that cryptocurrency is accepted in more convenience stores and restaurants. All 170 On the Run (OTR) operated businesses take Crypto.com as of July. OTR uses the digital currency Crypto.com and accepts crypto payments at real-time market prices.

According to Crypto.com, the appetite for mainstream crypto payments seems to be high on the consumer and merchant sides of the coin. Retailers considering digital currency may wonder: Is Crypto.com a winner or loser? Unfortunately, 2022 has been a very challenging year for every virtual currency. 

Why accept cybercash

The decision to join the cryptocurrency crowd is not one to make lightly. However, according to Deloitte's survey of 2,000 senior retail executives, most (87% of respondents) think accepting digital currency is a competitive advantage. Several issues are slowing down merchant adoption of cybercash transactions, including:

• Regulations of the digital currency industry players.
• The volatility of the cryptocurrency market.
• Challenges to conversion across currencies.
• Transaction costs and integration into current financial infrastructure.

Governments and financial institutions have a way to go to enable mainstreaming of e-currencies. However, Deloitte's 2021 blockchain survey found that most (76%) of business leaders polled believe digital money will be the dominant currency in five to ten years.

Cryptocurrency winners and losers

On June 13, 2022, the altcoin world turned upside down. Bitcoin lost 58% of its value in the second quarter, and Ethereum suffered a 70% drop in the same period. Selfwealth (ASX: SWF) pointed out in a February blog that the crypto slip started with Ukraine, proving virtual currencies need a stable world. Given geopolitical uncertainty, how does a business have confidence in digital currency?

The picture seems mixed at best. A recently published list of 2022's crypto winners and losers placed Monero in the number-one spot as the 'least-worst performing' anonymous and decentralised currency. To boost confidence, Monero plans to offer a perpetual minimum payment to miners of $72 for every block created. More time is needed for the trading volatility to calm down. Those with a stake in crypto will be looking for ways to lend, borrow and earn on their investment in the years to come. And those same crypto enthusiasts will also need a place to spend their altcoin. For businesses, the question remains: Is cryptocurrency a winner or loser?