In the ValiantCEO interview with billionaire Vin Lee back in February 2023, the man behind Grand Metropolitan recognized the enthusiasm among young CEOs and billionaire personalities for crypto markets, but it primarily being a fad that keeps “the PayPal Mafia” trending in the media. Since then, cryptocurrencies have made headlines due to fluctuating prices, but little progress has been made in adopting them as viable payment methods.
Bitcoin was created to usher in a new age of peer-to-peer payments that allowed the public to circumvent the meddlesome nature of central banks and governments. It offers many benefits to users and businesses willing to deal in digital coins, as do many other cryptocurrencies. Yet, as we approach the end of 2024, adoption remains relatively low. The question arises: will next year be the year that crypto finally gains traction and businesses truly accept it as a payment method?
Pockets of Adoption and Use
The earliest adopters of cryptocurrency were always looking for ways to use and exchange the coins. Now, perhaps due to the surge in prices and well-documented volatility, more establishments have begun accepting Bitcoin and its kin as payment. However, these businesses are often niche, reflecting the general rate of crypto adoption.
One notable area of crypto usage is in iGaming. Thanks to how the blockchain and crypto wallets work, platforms can accept players without requiring registration, which is how the PeerGame table games and slots operate. It’s a platform that leans into the benefits of using crypto, such as the additional privacy it offers and the low transaction costs. The site is, however, specialized to do this.
Conversely, traditional payment methods — such as entering card details and using eWallets — remain the most popular choices for businesses and consumers alike. Many cite the volatility of cryptocurrency prices as a significant deterrent to its widespread use. A mere two percent in the US, one percent in Sweden, and two percent in Australia use crypto. However, awareness of cryptocurrencies and ownership rates are notably higher.
Adjusting and Adapting to Fit Volatility
Pricing to fit the most popular cryptocurrencies is exceedingly tricky due to the volatility. However, looking further down the price chart from the likes of Bitcoin and Ether, more stability can be found. Allowing payments in these coins could attract more customers and businesses, allowing them to reap the benefits of cryptocurrency transactions. This shift could be facilitated through dynamic pricing strategies.
Dynamic pricing has received a bit of a bad name in mainstream circles, particularly due to how ticketing platforms swing prices based on demand. However, the model has proven to increase revenues for businesses in industries like air travel. We’re now in an age when digitization can allow for a more nuanced approach, as this FinancialTimes strategies piece details. Such technology could enable effective crypto pricing strategies.
Ultimately, the core value of each cryptocurrency remains subject to monthly fluctuations. Even advanced dynamic pricing software cannot fully alleviate the more common issues associated with using crypto as a payment method. In 2025, its use will most likely remain niche, with only specialized applications finding it useful or even a main selling point.
