The cryptocurrency market is growing, as there are hundreds of currency options available today. People can buy and sell cryptocurrencies in more places than ever. The global market cap of the crypto market is close to $1.5 trillion. That value will likely increase further as the industry evolves and cryptocurrencies become more popular.
Most of the stories surrounding cryptocurrencies entail people holding them and waiting for their values to change. Not all people are interested here, as they might prefer to spend their currencies.
People have been willing to make digital payments with cryptocurrencies over the past few years. But some have been interested in making crypto payments for everyday purchases. The development shows that businesses might need to consider supporting cryptocurrency payments when selling their items. But there are a few obstacles that might get in the way, including concerns over how well these currencies will run and work.
Are People Willing To Pay?
The website PYMNTS.com conducted a survey with people who have cryptocurrencies or have considered buying cryptocurrencies soon. The survey found that people would consider buying things with cryptocurrencies if there was such an option.
PYMNTS.com reports that more than 90 percent of people who own cryptocurrencies would be interested in paying for certain things with their currencies. Nearly 60 percent of people who have never owned cryptocurrencies say they would consider paying for those items with those cryptocurrencies.
While not all people are familiar with the crypto market, they might be willing to invest in it if they can find things of value. People are naturally willing to explore new things and enjoy a change from the norm. But the things people will be interested in the most are worth keeping an eye on.
Other Interesting Developments
There are many other factors in the PYMNTS.com survey to see:
- People are comfortable with spending small amounts with cryptocurrencies. Nearly half of people who have bought things with cryptocurrencies spend less than $100 on their purchases.
- People who earn less than $50,000 a year are willing to pay with cryptocurrencies. Those who make more each year will spend more at a time, but the lowest-earning people will still spend less than $100 on some payments if necessary.
- Millennials and Generation Z members are more likely to have made crypto payments in the past. Bridge Millennials have also made some payments, although not as often.
- People in the Generation X and Baby Boomer demographics aren’t as likely to have made crypto purchases. But at least 80 percent of people in those fields would consider spending crypto on things.
- The real estate market is the most popular segment that people would consider for crypto payments. The secure nature and the lack of third parties in the process may help, as those features could reduce the costs of purchasing a home.
Volatility Is a Concern
There is one significant worry about whether spendable crypto will be prominent soon. The volatility of the crypto market could cause currency values to rise or fall without warning.
The unregulated nature of the crypto market is also a problem. Since there are no specific laws or standards surrounding how these currencies can work, it could be easy for people to manipulate the market. They could change and shift many things in the market, making it harder for people to profit from what is open.
The technology necessary to access crypto payments is another thing to note. People need dedicated crypto wallets that are easy to load. They’ll need to provide fiat currency data to help them complete their payments. They must also use those wallets to complete their purchases.
There’s also the issue of how some tech items might not be easy for some people to access or use. They may not understand how smartphones or other items that hold crypto wallets work. They also might not get how alternative wallet solutions work, including physical wallets that require proper storage and security for all of one’s currency content.
Variety Is Essential
One other factor about cryptocurrencies involves how there are so many available to trade. There are hundreds of currencies today, with many new ones being released every month.
Estimates show that Bitcoin is the most prominent currency. This crypto choice covers nearly four-fifths of the currency market based on what people hold.
The Cryptocurrency Payments Report from PYMNTS.com states that close to half of people who have Bitcoin have also held another cryptocurrency. People who own crypto investments are willing to try different choices and see what is open on the market.
There are limits over what currencies are the most popular. Binance Coin, Cardano, Ethereum, and XRP have massive market caps, but not all people are familiar with what these have to offer. Dogecoin has been in the news quite often, as the currency and its developers have been trying to get people to take it seriously. But not all people are familiar with this currency, plus it could be even more volatile than Bitcoin.
Anyone looking to accept crypto payments will need to select their currencies with care. Bitcoin is an obvious choice, as it is easier to accept in more places. But offering an alternate option may also be worthwhile, especially if that new option is something that might be viable and easy for people to purchase and use anywhere.
What Does This All Mean?
Everything here suggests that there is some sort of interest in the cryptocurrency market. People are willing to purchase things with cryptocurrencies, and they’re fine with spending small amounts for each deal.
It will be up to individual retailers to see how they can handle crypto payments. They’ll need to target the right audiences, although that aspect might be easier to manage than people expect. The volatility of the market might be a challenge, as not all people are confident in how the market works.