In a bid to find out users’ perspectives of which cryptocurrency is best suited as a medium of exchange (MoE), Wirex conducted a survey which suggests that users prefer different assets depending on their needs.
Wirex which provides a platform for free purchase, storage and trading of both crypto and fiat currencies conducted the survey using bitcoin (BTC), litecoin (LTC), ethereum (ETH, or ripple (XRP). The survey was conducted on the company’s Twitter handle to know which of the above listed crypto assets the its followers prefer.
The question posted on Wirex’s Twitter website was:
“We have a remarkable community in #TeamCrypto & we want your input every step of the way for the @paymentsrace! Our runner @maxmeilleur can only use crypto to get from NYC – Vegas. Which crypto should his first purchase be in? BTC LTC XRP ETH” cryptocommunity.
In response, 73% of the followers said they would prefer Ripple (XRP) to the rest of the cryptocurrencies. Litecoin (LTC) had 9% of the respondents voting for it as their prefered MoE while Eth had only two percent.
Despite Bitcoin’s popularity and the fact that it is the biggest cryptocurrency currently, only 15% of the respondents said they would use Bitcoin (BTC) as a MoE. The respondents seem to agree with Vijay Boyapati’s position that Bitcoin is not the best cryptocurrency to be used as a MoE but rather as a store of value.
This according to Boyapati is because using BTC as a MoE will rob the user of the long term benefits of price increase that it is likely to have in the future, adding that the “opportunity cost” of using the asset is for this purpose is huge.
Ether getting a score of 2% so far is not so much of a surprise because it was originally designed for transactions on its famous Ethereum Blockchain through smart contracts and it facilitates issuance of ERC-20 compliant tokens.
The result of this survey basically justifies why Ripple’s cross border payment product xRapid which was launched recently has gained so much popularity in such a short time.
The result however does not cover all aspects of the cryptocurrency use cases such as their uses as stores of value. Ripple may be better for use as MoE but some people argue that it is less secure than mined cryptocurrencies such as Bitcoin and Litecoin which use Proof-of-Work (PoW) to verify transactions rather than Proof-of-Stake (PoS) that Ripple uses.
Perhaps another study with a wider scope will be more ideal to find out users’ preferences for cyptocurrencies based on different use cases.