With the company Tesla coming up with the announcement that it is going to accept the payment even in Bitcoin, we see a different trend erupting in the market. Elon Musk was quick to announce this a week ago, where he said he does not mind accepting the payment in Bitcoin like a payment for different models along with its cars of different models in the United States. From the transactional point of view, a number of digital currency-related announcements have come out from the billionaire, and this has come as a game-changing for Bitcoin.
This is very much evident from the data available for digital currency-related keyword searches over a number of search engines like Google. These keywords include invest in bitcoin or trading in digital currency and so on that seemed to have witnessed a good response. The fact of the matter is, there seemed a good jump in the number of searches claiming the data from the company – Semrush.
But as per several digital currency experts from YuanPay Group , many seemed to have come up with unstable options for Tesla that can help in deferring the number of companies that are seen following. The following are the key facts, which would make digital currency impractical along with being expensive at the moment for other companies that can prevent the announcement. Let’s check the key reasons as under:
As the market cap is now exceeded up to 1 trillion, bitcoin seemed to have acquired the status for getting the digital world level store for the value along with getting the reserve assets. However, the hourly cost fluctuations that are made seem to be extremely volatile, costly payment, and impractical method for corporates as per Megan Kaspar, who is one of the key persons of digital currency company known as Magnetic.
That simply makes the digital coin to be a poor medium of exchange, along with getting the Ricky method of different payment. The sudden fluctuations that are seen getting the negative impact over the client’s capability in order to pay the bitcoin claimed this man. With Fintech experts, Musk’s decision came like an experiment, which is going to gauge the potential revenue along with the kind of clients that the company has in the form of products. This has further helped in getting assumed in order to make the automaker’s testimonials for the payment mechanism.
A fintech expert said Musk’s decision is more like an experiment that will measure potential revenue and client type for his products. This step should be assumed to be one of the automaker’s tests for its payment mechanisms, he said. On the other side, Elon Musk was seen posing a question about the depreciation asset of the vehicle that comes in the coming few years.
One can find the underlying cost volatility to be among the most upcoming risks that are found for merchants. He claims that it can be volatile to such an extent that it can be felt even in a single day. The Webull firm CEO claims that there are few companies that are planning the leap in order to make the companies fiscally remaining traditional in its trends that remain too slow and effective.
High transaction fees
The next big reason to ensure a smooth transaction to enter into digital currency networks is that the high transaction involved in mining or network fee. Now, if you see the dollars being transacted with the digital money with higher mining prices, it will not help you in any way.
For example, if you charge 100 USD for transacting 35 USD, then it’s a futile effort to try this. The way the fees vary would depend upon the kind of network would demand, giving an average of around 20 USD. This payment element would make bitcoin blockchain fees remain unsustainable like a form of payment claims the experts.
Bitcoin a property and not a currency
The next big reason why companies would not dwell on bringing in huge money includes the internal revenue services that are added to the other layer of complication for merchants that the taxpayers want us to believe. Besides, one more reason why companies are not allowed to tread this path. These include the stringent digital wallet regulation.