Blockchain Being Used for Payments: Will We Accept Crypto As Crypto Or Tokens
Blockchain technology was initially designed to be a distributed ledger for the digital currency Bitcoin. It was created to bypass the need for third-party trust, creating an immutable and transparent system of record. Since then, the use of blockchain has expanded dramatically, creating a completely different economy than before. The question remains: What will happen when cryptocurrencies are used as payment?
Some say that we’ll be using crypto as crypto, but others believe we’ll use tokens as payments. So do companies have to choose between accepting crypto as crypto or tokens? Will they take both?
Read this blog post to find out what might happen in the future with blockchain being used for payments.
The debate between crypto and tokens to use for payments
There are two schools of thought on the debate between crypto and tokens. One school of thought is that we’ll be using crypto as crypto, and another believes that we’ll be using tokens as payments. So, do companies have to choose between accepting crypto as crypto or tokens? Will they get both?
It matters on which school of thought you subscribe to. If you believe that we’ll be using tokens as payments, companies will have to accept both tokens and cryptocurrencies. But if you think that we’ll continue to use the cryptocurrency Bitcoin (as opposed to other altcoins), then companies will only need to accept Bitcoin.
Crypto as crypto or tokens?
It is a common misconception that cryptocurrencies must be used as tokens. Many people believe that we will use crypto as crypto. However, this may not be the case. The idea is that tokens are used as payments for products and services, while cryptocurrencies would be used to exchange value between people or between companies.
Tokens are a way to store value and not transact it like in the case of cryptocurrency. For example, someone might buy tokens from you and then use those tokens, later on, to purchase something else from you instead of paying directly with their cryptocurrency because they don’t want to convert it back into fiat money at the time of the transaction https://www.okx.com/markets/prices.
Which will companies accept?
Companies will most likely accept both cryptos as crypto and tokens. They can decide to take one or the other, or they might use both. If a company chooses to use tokens, it’s possible that they would need to find an exchange that converts tokens back into a cryptocurrency like Bitcoin.
Crypto as crypto or tokens?
That may not be the question at all.
The question is, which will companies accept?
And for that answer, you need to know the differences between bitcoin and ether.
Bitcoin is a cryptocurrency.
Ether is a token.
Bitcoin is a peer-to-peer system for digital transactions that do not require a bank or third-party intermediary.
Ether is a token or currency that builds on an existing blockchain platform called Ethereum.