💲 [Analysis] It's too early for payments with crypto – Kevin Pan

Cryptocurrencies are nowhere close to being great payment platforms and enabling payments is not what makes them valuable today. There are two key reasons why cryptocurrencies are not good for payments today. The first is that the medium of exchange is not stable, causing it to be costly to use for transactions. If prices swing up or down, consumers can underpay or overpay for their products. Most, if not all, cryptocurrencies have an inelastic supply which results in highly volatile prices. When demand for a coin changes, which it does often, the supply cannot change to stabilize its price. The second problem with payments on cryptocurrencies is that they are incredibly inaccessible for the average person. It's very difficult to own cryptocurrencies as opposed to fiat currencies today as exchanges are difficult to use and user education is insufficient still. In order for crypto to become a good payment method, we will need a stablecoin and a much easier way to obtain crypto.