If you ask a regular person on the street what they know about cryptocurrency, more often than not, they would say they think cryptocurrency is similar to stocks. How people invest in certain coins, how they do something called “mining” in order to increase the value, and how they use high-powered computers to do this—answers similar to these are going to be what you can expect to hear. Even if you were to ask someone who actually did mining, very rarely would you hear them talk about the benefit of a fully decentralized value exchange mechanism. Most wouldn’t even know what a decentralized exchange mechanisms is.
The CafeCoin Foundation aims to change that. The Foundation has the experience and expertise needed to bring cryptocurrency into the light, and have consumers use it not only as something to trade and exchange, but also as a fully functional unit of exchange. CafeCoin aims to make it easier for the average person to make use of cryptocurrency, so it can be used to purchase goods and products from stores. Not only can cryptocurrency be used to make online purchases, but if CafeCoin’s plans come to fruition, you will be able to pay actual brick-and-mortar businesses and even other consumers.
This is still all in the future, though. No matter how beautiful it sounds, the road getting there is still long and rough. There are many factors that contribute to this, but the biggest reason why this hasn’t happened yet is because of the public’s perception of cryptocurrency. Because very few of them have any first-hand knowledge of the properties of cryptocurrency and how it works, they are going to be hesitant in going with it. So if cryptocurrency really does have this much potential, why hasn’t it been realized until now? Here’s why:
Cryptocurrency’s current state
Ever since the day bitcoin was created many years ago, a lot of different coins have popped up, each aiming to fully make use of a decentralized, publicly validated exchange mechanism that would benefit everyone using it. However, to this day, not even the most successful of these have achieved widespread acceptance as a unit of exchange by both online and high street shops, as well as other consumers.
Despite the mainstream buzz that bitcoin and cryptocurrency in general has generated, the big cryptocoins trade as a different type of digital asset with very erratic values. This is the primary reason why they can’t be used as a viable replacement for normal currency; trading and exchange rates are going to be fickle. Because the value suddenly increases or decreases at the drop of a hat, it stands to reason people cannot trust such a volatile mode of payment. The reason for cryptocurrency’s lack of public integration has been narrowed down to five factors:
- Use and access of cryptocurrency requires complicated technical know-how
- Expensive fees for transactions and exchange
- Transaction time takes too long
- Price appreciation has next to no potential with a very volatile valuation
- Very few merchants and consumers find the concept appealing
Because cryptocoins today are being treated more like a collectible or mineable item rather than a viable unit of exchange, the true potential of cryptocurrency cannot be realized. Though there have been some cryptocurrencies that attempted to battle this, they did not really provide sufficient incentive for people to actually invest in such a venture, and online stores and brick-and-mortar ones did not see value in accepting such a mode of payment.
On the other end of the spectrum, the mobile payment sector seems to be growing by leaps and bounds. They seem to be tremendously popular, especially with the younger consumers, which is understandable considering their demographic usually prefers digital modes of payment compared to over-the-counter cash or credit and debit cards. But the thing is, all of these modes of payment, be it digital or over the counter, required intermediaries or authorities to make sure everything is as it should be. This is where the true potential of the decentralized ledger technology comes in.
CafeCoin’s true utility token
CafeCoin is aiming to create a system where cryptocurrency can be used as a medium to replace standard cash and other currently accepted modes of payment. The Foundation has set up certain steps to take in order to make this vision a reality, and it also systemically targets the aforementioned factors that stopped this from happening before. The first step of the plan is to create relationships in the corporate sector, starting with the high-margin retail coffee sector. Though CafeCoin will offer incentives for both consumers and businesses, merchants will be the real target for this. If this is successful, Café tokens will start to be circulated, marking the beginning.
The next part of their strategy is to make use of a new and efficient payment architecture by leveraging blockchain. If properly implemented, this will ensure high-volume and near-instantaneous transactions that also feature minimal fees. With the completion of this step, another factor will have been taken care of, with the main crux of this plan being the assurance that despite the mass amount of transactions that may occur, wait time and fees would still be at a minimum.
Another important feature The Foundation wishes to implement is to create a robust economic structure through framework, so that volatility will be lowered significantly. Once a proper structure is set in place, valuation will become steady and will scale at a normal rate. One thing CafeCoin wishes to assure customers is that they will give customers complete control and privacy regarding historical payments on the blockchain. They will still have the option to share this information with merchants, and in exchange, they will get exclusive discounts and promotions that have been tailor-made to them.
The final thing CafeCoin needs to do is to allow businesses and consumers to have an easy way to interact with Crypto Exchanges, so they are easily able to trade CafeCoin. This will be the way that all future users of this cryptocoin will transact, and The Foundation will endeavor to make the whole process as smooth and seamless as possible.
Reasons why CafeCoin is different
The Foundation foresees CafeCoin will become the most widely accepted and used utility token for transactions and purchasing of consumer services and products. There are three reasons why The Foundation is seeing this as a probable outcome. The first is that CafeCoin makes use of the strength of decentralized tokens that are secured with cryptocurrency technology. This will translate to quick transaction and settlement times that also have low transaction fees.
The second reason is the ecosystem CafeCoin plans to implement will connect consumers and online businesses to brick-and-mortar retail, and at the same time leverage robust data analytics and marketing tools. The last reason is that though CafeCoin will still be a tradeable digital asset, the CafeCoin cryptocoin token will also be offered, which will feature a steady valuation. The platform will be built on free, easy-to-use software applications that will be made available to all popular electronic platforms, ensuring everyone involved will have access to leading edge distributed ledger technology even without in-depth technical knowledge.