THE OTHER SIDE OF THE COIN #1
People are rushing to LTC, and they like it because it's a relatively low entry point for a top 10 coin with pedigree. I don’t disagree, and I currently have some in my bag.
But I also recognize that it, and others like it, face a very real, looming threat.
If any given crypto is solely centered on being the fastest, cheapest-transaction-fee currency out there and being promoted as a cash replacement, then I feel it is ultimately doomed.
Yes, we need a solution that will work for our everyday purchases to transition from a fiat economy, but there will always be a need for some kind of physical currency, on some level, now matter how small that portion of business becomes. To suggest that everything will be 100% digital is simply unrealistic. That said, we do need a solution to handle day to day spending in the crypto sphere… In my opinion, it just won’t be a * specific crypto* type solution.
For instance, if I intend to use LTC or BCH as my daily spendable currency, I need to buy one of those tokens and then find places that accept those as currencies in order to exchange them for goods or services. That means the backers of LTC and BCH have a lot of ground to cover (in fact, they have ALL the ground to cover) to convince shop owners around the globe that these are worth accepting in exchange for their goods and services.
But, with something like TenX and other crypto debit card projects, I will be able to simply drop my chosen crypto into my wallet, and spend it with a debit card as I would with fiat. The transaction allows the business to receive fiat on their side of the transaction, rather than crypto, which means that they don't have to worry about any weird tax implications outside of the current established ones that they already adhere to, nor do they have to worry about conversion of currencies. Government will likely come along with specific taxation rules and regulations for businesses that accept crypto, but governments are big, slow to turn, can be heavy handed, and there are many of them around the globe that will be forced to face this as individual nations. With TenX, it slips crypto into the chain without having to wait for governments to crash into the crypto icebergs floating around them. They can take their time to draft real-world regulations that work to protect innovation and progress without being intrusive (and if they don't, who cares, because on our end of the transaction, we will already have a solution that works).
So, what if businesses don't adopt services like TenX? Sure, that is possible, but logic says it is more likely that they will adopt it rather than adopt payments in dozens of specific, different cryptos that add more work to their back end accounting in the long run because it is simply easier for the business to go about their business. The business doesn’t have to change how they do business. This is a key component to mass adoption.
Some people will argue, ‘yes, but with a fork, these solely currency-based cryptos can include smart contracts!’… we already have a ton of cryptos with smart contracts. And they work well. And they will continue to be improved upon (ETH isn’t even finished with its dev cycle/updates yet!). We don’t need more clutter.
The main rules for technological adoption are:
- Improve on an old technology
- Make it as convenient or easier to use the new system
- Make it benefit the user somehow.
With something like TenX and other crypto debit card systems,
Improve old technology: Crypto and blockchain are a given, but in this instance, I can put all of my paycheck into crypto and spend off it directly, rather than compartmentalize my savings and spendings accounts. This means that until the exact moment of my purchase, my earnings are all investments. It’s the antithesis to the way we’ve been taught all these years. This sets me up for a greater portion of my earnings earning me greater returns throughout the year. I will admit that it makes sense still to maintain a legacy bank account with a modest balance in it so that if your crypto valuation drops during the course of a given month, you can mitigate potential losses by simply spending fiat from your small legacy account until your crypto account starts gaining again, but outside of this, it is my belief that the compartmentalization of savings and spending accounts is dead.
Make it as convenient or easier to use the new system: I can use the crypto debit card in the same manner that I use my current bank card. I do not have to change how I spend my currency, and don’t have to restrict where I spend because the TenX setup allows me to be crypto nonpartisan. To me, locking yourself into a specific crypto is like buying a gift card for a specific store or chain of stores - why would I ever do that? You know what is better than a gift card for a specific store? A currency that I can use at any store.
Make it benefit the user somehow: I don’t know about the specifics other crypto debit card systems, but TenX seems to have a lot on offer. They will pay royalties for holding their PAY token, the card costs ~$10USD when ordering but there are no transaction fees for the user (the fees to support the system are collected from the businesses at very competitive, attractive rates which, when combined with the ease of them receiving fiat, makes it even better for the sellers), and it allows for the improvement in tech that I mentioned above, which means more of my earnings become an investment, even if it is only short term for the money that I spend on gas, entertainment, etc… It is already the case this past fall where people loaded up their TenX account with crypto, spent all month as they liked, and at the end of the month had a greater cash equivalent balance in their account due to the rise in the value of the crypto they were holding in the account! Imagine buying your incidentals and spending on entertainment, then checking your balance at the end of the month and seeing an increase!
Putting all of this into perspective, I think 2018 is preparing to be a HUGE year for crypto. It will be the year when we see the beginings of the general public’s adoption of daily crypto spending. As such, coins like LTC, BCH, etc… that shoehorn people into changing their habits, and force businesses to risk taxation issues, as well as valuation instability issues, makes setups like TenX and its competitors far more attractive in a practical use sense on both sides of the transaction.
Just my 2 crypto cents on the matter.