The CafeCoin Foundation not only aims to have their utility token “CafeCoin” become a vehicle for payment in the coffee retail sector. The Foundation wishes to have CafeCoin become a true utility payment token that can be used as a mode of payment for services and goods in different sectors all over the world. There have been other ICOs that aimed for the same lofty goals, but they did not properly recognize the problems they would face, and therefor were left unable to properly plan on how to overcome the obstacles that popped up.
The Foundation has identified several problems in the current market scenario which contribute to reason why cryptocurrency hasn’t been adopted by the general public. They have expended a large amount of time and resources in order to ensure this project would pull through, and CafeCoin will become a true utility token that is utilized by people everywhere. They have already put plans in place in order to overcome the factors that block them from the goal. The foundation leverages a mixture of technology and strategy in order to meet their goals, and the first thing they made sure to do was to identify the typical obstacles in their industry.
Current Market Scenario
Before tackling CafeCoin’s findings and strategy, let’s take a look at what the current cryptocurrency scene looks like. Ever since the boom of Bitcoin, thousands upon thousands of altcoin projects have popped up. They had a vision where the token they would produce would be the one to replace traditional fiat money as the go-to mode of payment. And yet as of this writing, there hasn’t been a single utility token that has been widely accepted by brick-and-mortar stores, online merchants, and the average consumer.
In some countries there are offline stores that accept cryptocurrency as a mode of payment, but they mostly only accept the more popular cryptocoins, and these aren’t widely accepted enough to be significant. There is no shortage of media buzz and news about cryptocurrency, and yet a vast majority of the public still have little to no understanding of what it can do, and what it really is. The popular opinion is that cryptocurrency is something you invest or trade in, and that valuations are more often than not unstable. A lot of people only ever heard of cryptocurrency through stories of people who became rich overnight by “doing crypto.”
When it comes to the finer details of cryptocurrency, very few people are actually knowledgeable. Which is actually one of the reasons why it hasn’t been widely accepted yet, but we’ll get to that later. Because of the public’s perception of cryptocurrency, Bitcoin and other altcoins behave more like gold or other collectable items, rather than units of value that are used as standard modes of payment. Although there are certain coins out there that have tried to address the stability of cryptocurrency’s valuation, they failed to address the other factors that held cryptocurrency back as well.
The Reasons Why Crypto Has Yet to Achieve Wide-Scale Adoption
Cryptocurrency as of today is limited in its utility when it comes to paying for goods and services. Their commercial value has been so far limited to niche use cases, and certain retailers that have accepted cryptocurrency as a mode of payment. On the other hand, the mobile payment sector has achieved an unprecedented amount of growth and adoption recently. When it comes to the younger customers, they would rather use platforms like PayPal, Alipay, WeChat Pay, and others to pay for products. All of these still rely on a third-party centralized authority to overlook and validate the transactions though, which is one of the things that cryptocurrency aims to eliminate. But so far, these factors are blocking the way for cryptocurrency:
1. Getting cryptocurrency requires technical knowledge
In the current crypto scene, one of the biggest detractors for people in adopting cryptocurrency is the fact that it seems so complicated. Despite the many instructional content on the internet that explains cryptocurrency in simple ways, for the average person, it just seems to be too much. They can already use traditional fiat money easily, and digital payment can be used for online purchases. They don’t really think the time that needs to be invested in order to properly make use of crypto is worth it.
2. Substantial exchange and transaction fees
For those who already do make use of cryptocurrency, they know that transaction fees are sometimes ridiculously high. The standard for these fees are outside of their control, and for some they just swallow it since there doesn’t seem to be anything they can do.
3. Long transaction times
If crypto users were to insist on a low transaction fee, they would have to endure an extremely long wait before the transaction is validated. Especially for those cryptocurrencies that have a lot of people in the network, creating a block in the blockchain gets more and more difficult, and therefore will take a longer time to create.
4. Volatile valuation
Because of the nature of today’s cryptocurrency, the valuation for coins go up and down at the drop of a hat. There is very little people can do for now, and investing in today’s cryptocoin can be high-risk, high-gain.
5. Limited adoption by the general public
Very few merchants and consumers actually make use of cryptocurrency in their transactions. As mentioned before, although there are places you can use your cryptocurrencies to pay for goods and services, the stores are few and far between, and they usually only accept the most popular ones.