UQUID EXPLORE: Crypto risks and barriers in e-commerce
• Small number of consumers
Currently, the number of crypto users is really small. Part of the reason is that the concept of blockchain or crypto is very vague to the vast majority of consumers. Another reason is financial problems. Of course, you don't have to spend more than $60,000 to buy 1 bitcoin to do anything. However, rising prices make it really difficult for consumers to buy crypto.
• Crypto market volatility
When it comes to the price of Bitcoin, the cryptocurrency is known for its constant price fluctuations. Non-participants will perceive crypto ownership as a form of gambling. It is because of this view that many people are still afraid of virtual currencies. For example, the price of Bitcoin is showing signs of increasing in the near future. The reason is that the value of this currency is not backed by a fiat currency at all. So, no one knows how much the value of this coin will increase.
• Delayed crypto transaction authentication in e-commerce
This is a big problem for e-commerce stores. E-commerce transactions are slowed down a bit because crypto transactions must be validated against the ledger of the blockchain system. This process is still near-instant, but will also take time-based on the cryptocurrency wallet and website in use.
• Too many different cryptocurrencies
As of early 2021, there are over 4,000 different cryptocurrencies. This forces e-commerce stores to allow a variety of payment options based on the cryptocurrency that customers use the most.