Limitations of Cryptocurrency as a Payment Option

[Nomad]

Crypto is becoming very popular as a payment form but it has some drawbacks that a very few people are talking about. It is mostly related to the volatility related to crypto. Let’s say, you agreed to work for 1 LTC when the price is $100, but by the time you receive 1 LTC could be $80. This kind of instability makes crypto payment not very reliable so a lot of businesses hesitant to accept crypto. Tesla was once selling cars for BTC but when the market went down, it switched back to fiat currency.

 

[neku]

Some sellers and buyers are specifying the transaction amount in a stablecoin like usdt so that they are not affected by the fluctuations in crypto prices.

 

[King Belieal]

It is just the volatility that can make the worth of your payment possibly shrink when it gets to you that is the biggest limitation of crypto as payment method.

 

[Suba]

In fact, the benchmark price of an item uses fiat money or USD converted to crypto/Ltc, where the crypto price drops the buyer is required to spend more crypto, whereas if the crypto price is high the seller will only receive a small amount of crypto, so as a seller it is better to accept crypto when the price is low, as they are buying crypto.