Cryptocurrency offers a myriad of benefits to investors – privacy, decentralization and a slew of useful apps. These digital currencies are prized for their complete decoupling from governmental control. Yet, this results in several unique issues, including an ongoing challenge for liquidity.
While most crypto investors puzzle their way through the initial buying hurdles, they are often at a loss when determining an exit strategy. To gain mass real world adoption, cryptocurrency will require a simple and reliable means of being converted into goods and services.
Previous Attempts at Solving the Liquidity Challenge
The cryptocurrency industry is aware of the problems facing it, and several solutions have been presented in its evolution. One of these solutions was a debit card that was linked to a cryptocurrency balance and could be used at any location in the real world. This was briefly a reality, as several companies began issuing cryptocurrency debit cards through 2017 and earlier.
This came crashing down in early 2018 when Visa announced that they were dropping the WaveCrest Company from their network. As a result of this action, nearly all cryptocurrency debit cards became defunct instantaneously. Users found them declined on site, and were forced to remove their cryptocurrency back to their wallets or exchanges.
More recently, LiteCoin announced that it would be working with an outside company to provide real world purchasing power. The LitePay network would have allowed LiteCoin to be used at any point of purchase in the real world. Unfortunately, LitePay was less than upfront about how the WaveCrest situation affected its business model. Their much touted release turned into a debacle when it became clear that there would be no LitePay card – only digital purchases with approved small-scale merchants.
Security Issues with Current Payment Methods
The aforementioned issues are unique to cryptocurrency, but the mechanism of fiat storage is also rife with potential issues. Carrying fiat currency offers no back-up system – if the money is stolen, or even lost, there is obviously no way to retrieve it without physically finding it. Losing a wallet containing cash could mean a tremendous loss of value. Moreover, robberies are an ever-present threat in an economy based on physical currency, and the results of such criminal acts could include violence.
Digital currency is only so much better. At its very foundation, it requires trust in a third party institution to properly store and grant access to a user’s money. The complexity and scope of malware and phishing attacks grow with each year, and require users and institutions to be ever vigilant to avoid having money stolen.
The solution to all of these problems, and the liquidity issues facing cryptocurrency, might be in the avoidance of fiat altogether.
Crypto to Gift Card Gateway: The Zeex Solution
Upcoming cryptocurrency project Zeex offers a unique method of cryptocurrency purchasing power. Operating through their sister company, the Zeek Group, Zeex is creating a direct cryptocurrency-to-corporate-currency (i.e. virtual gift card) gateway through their network of retail partners.
The Zeek Group has made a name for itself by creating an exchange for branded currency – effectively, a means of trading between various gift cards. It established partnerships with massive companies like Amazon to ensure the greatest possible value in its service offering.
Now, through Zeex, the company is expanding that network into the cryptocurrency sphere. Users will be able to purchase ZIX, the company’s proprietary token, through exchanges or use several existing cryptocurrencies to buy ZIX directly at the Zeex exchange. ZIX can then be used to purchase gift card style corporate currency.
A user will never be stuck with a single currency, and can freely trade between different retailers, or even back into ZIX itself. In this way, Zeex can provide a complete solution to the liquidity issue – allowing users to make purchases with e-commerce and brick and mortar vendors directly with their cryptocurrency.
Further, the user always maintains control of their ZIX tokens. Like any other cryptocurrency, transactions are recorded on a public ledger and the token can be traded on exchanges. At no point is there a hazard of losing currency, and there’s no equivalent to losing your wallet. In this way, users can safely store their money.
A Gateway to Greater Cryptocurrency Adoption
Many average investors are not willing to jump through the technical hoops necessary to gain access to the cryptocurrency market. This is particularly true when they have no assurance that a cryptocurrency will have actual purchasing power in the real world.
In order to spur growth in the cryptocurrency market, this problem needs to be solved as soon as possible. Companies like Zeex are critical to bringing this industry to a wider audience – something that benefits investors and users alike. December showed us that the average investor is willing to engage with the market, but only if they believe there is value in it. A direct cryptocurrency-to-purchasing power gateway will go a long way towards that belief.