Home Technology Here’s why Vitalik Buterin thinks crypto payments will become mainstream

Here’s why Vitalik Buterin thinks crypto payments will become mainstream

Here’s why Vitalik Buterin thinks crypto payments will become mainstream

Crypto payments have become more popular, especially after the bull market of 2021. There are now millions of merchants around the world who accept cryptocurrency payments through direct and indirect integrations. Even large corporations have jumped on the bandwagon.

Nevertheless, crypto payments are still in their infancy. There are still a good number of places in the world where users cannot pay for goods and services using cryptocurrencies. However, Ethereum founder Vitalik Buterin expects that to change soon.

Crypto is going mainstream

In a recent interview, Ethereum founder Vitalik Buterin shared his thoughts on crypto payments and how fast he expects them to grow. The founder spoke during a session during Korea Blockchain Week 2022 which kicked off on Sunday. Focusing primarily on Ethereum, Buterin shared that crypto payments will go mainstream, and the why was actually because of the Ethereum merger.

The merger is expected to take place in September and should make the Ethereum network faster and cheaper to use. The founder expects the network upgrade to reduce Ethereum fees to $1 once the merger is complete. This goal will be achieved “by improving the efficiency and accessibility of cryptography”, according to Buterin.

The Ethereum developers have been hard at work for about two years now with their merger efforts. Buterin also points this out in his speech, pointing out that rollups were part of ongoing developments to make the network faster and cheaper to use.

Crypto Market Cap Chart from TradingView.com

Market cap at $1.17 trillion | Source: Crypto Total Market Cap on TradingView.com

Do better for everyone

The fee structure highlighted by Vitalik Buterin during his keynote was one of the major barriers to the full adoption of mainstream crypto payment. Now, when it comes to larger transactions, a $20 fee may seem inconsequential. But the problem arises when a coin like ETH needs to be used for smaller payments such as daily purchases.

Buterin pointed to the fact that these transactions are not accessible to people living in low-income countries. “Many people around the world are already quietly using crypto for international payments,” the founder said. “For low-income countries, there are also many opportunities for crypto payments that present the advantages of digital technology – efficiency and security.” For this reason alone, there needs to be a successful restructuring of the network to make way for cheaper transaction fees running into the pennies.

Buterin expects transaction fees to drop to 0-25 cents after rollups are implemented. But in the future, the founder believes the network can reach 5 cents and below with further improvements.

Featured image from Coingeek, chart from TradingView.com

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