Vitalik Buterin
Vitalik Buterin

Payments in crypto are still not understood by people said Vitalik

Ethereum co-founder Vitalik Buterin cites the ease of international payments and payments to charities as prime examples, arguing that the superiority of cryptocurrency for payments is often “inadequate” compared to fiat.

Buterin explained in a Twitter thread on August 24 that it is not only resistance to censorship, but also the convenience that makes cryptocurrencies “superior” when it comes to international trade, charity, and even payments within countries.

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People continue to underrate how often cryptocurrency payments are superior not even because of censorship resistance but just because they’re so much more convenient.
Big boost to international business and charity, and sometimes even payments within countries.

A report from the PYMNTS data platform titled “Payment with Cryptocurrency” released in July revealed that 85% of businesses surveyed say they are adopting crypto payments with annual revenue exceeding $1 billion.

The availability of crypto debit cards is growing rapidly as Binance recently partnered with Mastercard to announce a prepaid card for Argentines. As noted by Vitalik, cryptocurrencies are also particularly useful for international money transfers and charitable donations.

The war in Ukraine is a great example of its usefulness in this context, as Deputy Prime Minister Mykhailo Fedorov tweeted on August 18 that $54 million was raised solely by the nonprofit and activist group Aid For Ukraine.

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However, with common objections such as price volatility, ease of use, and regulatory risk, as well as high transaction fees and long transaction times for certain cryptocurrencies such as Bitcoin, not everyone is so optimistic about the use of crypto as a means of payment. While this may vary, the Bitcoin blockchain processes around five transactions per second (TPS) and averaged $0.819 as of August 24, while Ethereum is currently trading around 29.3 TPS with an average fee of $1.57.

Visa claims it can process 24,000 transactions per second and charge between 1.4% and 2.5% per transaction. Stablecoins, cryptocurrencies designed to be pegged to another asset (like the US dollar), have also become a popular medium of exchange, especially in emerging economies.

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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