Can Flexa $AMP Replace Fiat With Crypto?
The problems that Flexa aims to solve:
1. Merchants’ most common issues are card fraud and transaction costs.
Firstly, to give you an idea of how important this is, the U.S. was seeing about $11 billion worth of losses due to card fraud in 2020 only. Secondly, merchants are paying pretty high fees to their payment providers. This fee is usually somewhere around 3-4% of the entire transaction. This is why some small places might have a minimum amount of charge when it comes to accepting card payments. In fact, big companies like Costco and Walmart pay billions of dollars per year for the transaction costs to their payment providers.
This is where the Blockchain ecosystem steps in. In theory, blockchain and cryptos can solve the issues stated above and reduce transaction costs.
2.Crypto payments acceptance from merchants
Even if the blockchain could solve card fraud and lower transaction fees, which they can, it is difficult for merchants to adapt this payment system. This is because it is something completely new because even though we have seen some payment providers such us Visa adding cryptos as a payment method it is still not widely acceptable from most merchants.
3.Eliminate centralized transactions
However, Visa, Master card, and other cards that allow crypto payments still require another layer of system that is centralized. This, from the customer perspective now, might not always be good. Do you all like the idea that your bank can know every little spending you do? Or if not your bank then your partner, trying to surprise them with a nice gift but can’t because the transaction will be shown and with the exact store you made your purchase from. Therefore, decentralization is another goal to be achieved by Flexa.
4.The amount of time required for a transaction to be completed
It is not easy for any coin to just replace fiat for many reasons. Let’s use the number one most known cryptocurrency around the world, bitcoin, in our example. Bitcoin cannot replace fiat simply because of the amount of time it requires for the transaction to be completed.
Let me break this down to you in case you do not know. So according to Coinsutra, a bitcoin transaction can take anywhere from 1 to 60 minutes or even a day or two. This is happening because there is only a limited number of miners and only a limited number of transactions can be processed in the 1Mb block size of Bitcoin. The fee decides which transaction gets the priority in the 1 Mb block, and miners prioritize transactions with higher fees attached to them.
This is why technically; bitcoin is not the best solution when it comes to fast transactions. Imagine being at the supermarket and have to wait 20 minutes for the transaction to be completed. Add to that, the fees that users need to bear at the end of each month when it comes to daily uses.
In the chart, it shows that the AMP coin price is currently at $0.071. At the beginning of April 2021, the price was around $0.027, and this is only one month ago. This is a 160% increase since the beginning of April. From what I have noticed, AMP has a very strong community and many believers behind it and this is what makes it a long-term hold.
1. Merchants’ most common issues are card fraud and transaction costs.
Firstly, to give you an idea of how important this is, the U.S. was seeing about $11 billion worth of losses due to card fraud in 2020 only. Secondly, merchants are paying pretty high fees to their payment providers. This fee is usually somewhere around 3-4% of the entire transaction. This is why some small places might have a minimum amount of charge when it comes to accepting card payments. In fact, big companies like Costco and Walmart pay billions of dollars per year for the transaction costs to their payment providers.
This is where the Blockchain ecosystem steps in. In theory, blockchain and cryptos can solve the issues stated above and reduce transaction costs.
2.Crypto payments acceptance from merchants
Even if the blockchain could solve card fraud and lower transaction fees, which they can, it is difficult for merchants to adapt this payment system. This is because it is something completely new because even though we have seen some payment providers such us Visa adding cryptos as a payment method it is still not widely acceptable from most merchants.
3.Eliminate centralized transactions
However, Visa, Master card, and other cards that allow crypto payments still require another layer of system that is centralized. This, from the customer perspective now, might not always be good. Do you all like the idea that your bank can know every little spending you do? Or if not your bank then your partner, trying to surprise them with a nice gift but can’t because the transaction will be shown and with the exact store you made your purchase from. Therefore, decentralization is another goal to be achieved by Flexa.
4.The amount of time required for a transaction to be completed
It is not easy for any coin to just replace fiat for many reasons. Let’s use the number one most known cryptocurrency around the world, bitcoin, in our example. Bitcoin cannot replace fiat simply because of the amount of time it requires for the transaction to be completed.
Let me break this down to you in case you do not know. So according to Coinsutra, a bitcoin transaction can take anywhere from 1 to 60 minutes or even a day or two. This is happening because there is only a limited number of miners and only a limited number of transactions can be processed in the 1Mb block size of Bitcoin. The fee decides which transaction gets the priority in the 1 Mb block, and miners prioritize transactions with higher fees attached to them.
This is why technically; bitcoin is not the best solution when it comes to fast transactions. Imagine being at the supermarket and have to wait 20 minutes for the transaction to be completed. Add to that, the fees that users need to bear at the end of each month when it comes to daily uses.
In the chart, it shows that the AMP coin price is currently at $0.071. At the beginning of April 2021, the price was around $0.027, and this is only one month ago. This is a 160% increase since the beginning of April. From what I have noticed, AMP has a very strong community and many believers behind it and this is what makes it a long-term hold.
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