Cryptocurrencies have long since entered the mainstream. Few people are familiar with the blockchain technology behind it, but more and more people are buying Bitcoin Ethereum and Co, even if they lack the necessary expertise. Many do so as a speculative investment, while others use digital currencies for actual transactions. Especially online, more and more companies and merchants are accepting payments in cryptocurrencies. But what should be considered in this context and what developments can be expected?

Where and how are payments possible?

In contrast to other countries, the range of companies and merchants that accept crypto payments still leaves much to be desired in Germany. Nevertheless, the number of acceptance points is increasing, which also has to do with the increased demand for corresponding options. Among the most well-known companies that accept payments in cryptocurrencies are Lieferando, Steam and the travel portal Expedia. In addition, there are also many retailers who sell their goods online and accept crypto payments. On sites like Coinbase, you can also find stationary merchants where you can also pay with Bitcoin and Co.

In the middle of last year, news also made international headlines that Amazon, the largest online retailer, was looking for a crypto executive position in a job posting. So at the very least, the shipping giant seems to be preparing for a possible opening for crypto payments.

Current cryptocurrencies only conditionally suitable

As uncomplicated and fast as crypto transactions are, there is still one big catch with most current cryptocurrencies: sharp price fluctuations. This characteristic, known as volatility, can be tolerated by speculators in case of doubt and they wait for the next high after a price slump. However, when it comes to payments, it is more than a hindrance if the cryptocurrency purchased for a certain exchange rate has a much lower value when paid a few hours later.

In principle, however, blockchain certainly has the potential to become increasingly relevant as a technological foundation. Thus, it is not unlikely that new, interesting cryptocurrencies will emerge in the future that will solve the problem of volatility and thus be more suitable to be used as a means of payment for online shopping.

Outlook

The view that cryptocurrencies are the future of payment is shared not only by crypto fans, but also high-ranking financial experts are aware of the importance of the blockchain and digital cryptocurrencies. For credit card providers in particular, cryptocurrencies represent serious competition to traditional currencies. Both Visa, as well as Mastercard have already founded their own payment networks for cryptocurrencies and created a corresponding infrastructure to enable customers to pay in cryptocurrencies as well. PayPal is also working on its own system.

We are currently most likely only in the early stages of a crypto revolution. It is already possible to use Bitcoin and Co. for online purchases and the number of acceptance points is continuously increasing. If cryptocurrencies are developed in the future whose value is not subject to such large price fluctuations, the resulting benefits could be cause for more people to become interested in using them. This would mean that nothing would stand in the way of the final victory of digital currencies, at least for online purchases.