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[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!
[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!

Cash Apps Cashing in on Cryptocurrency: Good For All

  • Darryn Pollock
    ⭐ Features

    Cash Apps are starting to venture into cryptocurrencies and it could be a game changer for both the apps and the digital currency space

Cash Apps Cashing in on Cryptocurrency: Good For All
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So-called ‘Cash Apps’ such as Venmo, have filed an important niche in today’s society, making the transfer of money simple and easy for a new generation who operate mostly from smartphones. However, there is already an overhauling happening as some of these apps build in cryptocurrency support.

In the news, Square Cash app, which is headed up by Twitter CEO Jack Dorsey, has overtaken the popular Veneno in popularity, and while it is hard to pin that all on the fact that Square integrated crypto, it could be playing a part.  

A new era

Square has always been aligned to Bitcoin especially seeing as Dorsey has praised the digital currency as the future of finance. But it is not the only one that has moved into the space. Others include Circle, and Robinhood, and even within this space, these apps are in hot competition to provide the best crypto service for ordinary users.

Robinhood has added new coins recently, as well as began with zero fee trading, all in order to grow their user base, but now it seems that the option of crypto is boosting the cash app market.

According to data from Sensor Tower and Nomura Instinet, Square’s App has been downloaded 33.5 mln times, while Venmo has been downloaded 32.9 mln times. This move is a result of Square staggering growth rate at nearly three times faster than Venmo.

Good for crypto

The popularity of Cash Apps that are integrated with crypto says a lot about the space currently. Digital currencies, especially Bitcoin, have been evolving over their few years of existence. Bitcoin was always seen as digital currency, but its recent growth and rise in popularity has made it more valuable as a store of value.

However, there are other options out there that are suited for use as a currency, such as Litecoin and Bitcoin Cash, and as these Cash Apps grow, they are delving into this alternative currencies, testing the markets and the popularity of using such coins as cash.

However, regardless of which coin is better, or which apps are best, the truth of the matter is that there is clearly interested in using crypto simply in the form of an app. For those in the know, Bitcoin and other cryptocurrencies can be easily sent, spent, and received with the use of exchanges and wallets, but for the general man on the street, other options are needed.

Much like Wall Street is awaiting a Bitcoin ETF in order to break into a hitherto unknown market, the option of spending cryptocurrency as easily as cash on an app is far more appealing and can aid in the mainstream adoption.

Putting the cash back into cryptocurrencies

Cryptocurrencies will continue to evolve and change direction, but there is little doubting that their ultimate goal, down the line, should be as a means of exchange. These boosts in popularity for mainstream users as cash will help sculpt the ecosystem and make sure that their use as the currency continues.

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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