For everyone involved in the cryptosphere, we want to see that the interest in cryptocurrencies continues to grow, more people to start using them, and more ways in which we can use our cryptocurrencies each day. In essence, we want to see them hit the mainstream!

However, there is one problem! The majority of the population and businesses still don’t trust them. But, why don’t they? Very simply, the prices are too volatile and you cannot use them in many places to buy things. But, we hear you say “If more people bought them then they would get more options and the price would stabilise”, which is true.

Currently, the majority of people involved in the crypto community are buying and selling (trading) coins in order to try and make a profit. These people want more people to buy these coins and businesses to start accepting them as a payment option because this pushes prices up. However, it is exactly this focus on trading for profit that drives the volatility in prices and the mainstream away from using them.

In this week’s blog, I will suggest a solution to this problem that will benefit the traders, the general public and business. To understand how to solve this problem we must first understand the difference between currency exchanges and trading platforms.

What is a Currency Exchange?

To become involved in any cryptocurrency, you must be able to exchange your current currency for the cryptocurrency that you want. It might be a regular fiat currency like the euro or dollar, or even another crypto. This is exactly the same principle as when we would go to the bank, post office or bureau de change to exchange money before taking our foreign holiday abroad many years ago. However, today, like with most things, we can now do this online, and in an instant.

An exchange must also have the ability for you to change back to your original currency, or even another, whenever you wish. Just like when you used to change your remaining foreign currency when you got home from that holiday.

Without a currency exchange, it is not possible for people to buy a cryptocurrency, such as Dagcoin, or begin using it.

What is a Trading Platform?

One big misconception held by many people is that currency exchanges and trading platforms are the same thing. It is an understandable thought as traders are essentially buying and selling the same currencies that we may be exchanged in order to buy things. However, they are not! Probably the biggest difference is that they offer a variety of trading tools and brokerage options that currency exchanges simply do not have.

One of those additional possibilities would be leverage. Leverage is simply borrowing money from a broker in order to trade with. These additional funds can greatly enhance your stake in a particular trade, perhaps by as much as 100x your own personal investment.

A trading platform has just one purpose, for users to buy and sell a currency or stock in order to try and make a profit. For the vast majority of the population, they will never use one.

The Current Problem

At present, the majority of users of cryptos are either trading them or buying and holding on to these coins as long term investments. Very few real transactions for goods or services are actually taking place. This means that those trading the coins have an effect on the price far greater than traders of traditional fiat currencies like the dollar, who are greatly outnumbered by the hundreds of millions of daily users of the currency.

One example of the influence these traders have came some weeks ago, when just one trader sold 5000 Bitcoin, sending the price of Bitcoin temporarily tumbling by more than $2000, at the time around a 30% decrease. This kind of price change would be unimaginable in the fiat currency world, outside of serious hyperinflation, beyond that of even Venezuela today.

The Solution

The only way for cryptocurrencies to really hit the mainstream and build this trust with users is if the focus changes away from what price a particular coin is a today, what it might be tomorrow, next month or even next year and in to becoming actual money that people use on a daily basis to buy goods and services.

This is why Dagcoin was created with a focus on usability. Before the coin was released a whole host of free software were created for businesses in order for them to easily start accepting and using the coin. These included; add-ons for web shops to be able to accept online Dagcoin payments, a point of sale system to accept Dagcoin payments in physical stores and an application to create invoices.

It didn’t stop there, because the currency is based on DAG-chain technology the coin cannot be mined – such as with blockchain currencies like Bitcoin – it can only be bought. Because it is not mined (a process that requires other users of the coin to verify other users transactions, receiving a small amount of the currency in return) payments are super fast. A Bitcoin transaction takes on average 40 minutes, a Dagcoin payment less than 30 seconds.

In addition, Dagcoin can only be purchased on SwipeX, a currency exchange. This means that the coin cannot be traded like almost all other cryptos. This makes the price of the coin much more stable and less at risk to the whims of traders. However, it doesn’t mean that there isn’t the possibility for people to invest in the coin, or even buy and sell it if they wish.

Conclusion

Cryptocurrency has amazing potential. That is why we are all interested in it. This is why so many of you are trading cryptocurrencies because you see the value of these coins growing incredibly over time.

However, we have reached a point, where for these coins to reach their potential, we must turn our focus away from the price and towards making them usable for the masses. Because, currently, trading is producing too much volatility in prices, which is scaring people and businesses away from starting to use them.

This is why Dagcoin was produced with a focus on usability, not trading. It was created with a whole host of free software to help businesses start accepting, making and requesting payments with the currency. The more people who start using the currency and the more businesses that accept it, the higher its price will be. Making it perfect for the masses, businesses, and traders.