Is Cryptocurrency the Future of Digital Payments?

As more retailers accept cryptocurrency as payment, the technology, which remains a mystery to many, could soon become mainstream.

 

Cryptocurrency has made a splash over the past few years. Between January 2014 and 2018, the total market cap of the top ten cryptocurrencies has risen from $11.36 billion to $455.57 billion, which represents more than 190 percent growth over the four-year period. Complex and volatile, cryptocurrency is a mystery to many, but as more retailers start accepting it, customers could soon find themselves paying with Bitcoin or Ethereum at the checkout counter.

“If the big guys are exploring and starting to offer it, more customers are asking for and demanding it, and retailers do not want to get left out in the cold, especially if they have a global presence,” said Michael Diamond, director of industry analysis for commercial technology at The NPD Group Inc.

So how does a cryptocurrency transaction work, and will it be the future of digital payments? In the graphic below, we break down how funds are exchanged and kept secure.