Cryptocurrencies hold significant potential, and their disruptive power is undeniable. So far, they are altering how payments are processed, the methods by which documents are verified, and a number of other areas. And this is only the tip of the iceberg when considering the many possible applications of crypto and the blockchain. Let’s look at how cryptocurrency will impact the future of business.
More of Your Customers Want to Pay with It
While cryptocurrency hasn’t replaced fiat currencies, a growing number of potential customers want to pay for goods and services with it. And many businesses are starting to show interest.
For some customers, the anonymity cryptos offer is what makes them so attractive. Industries where anonymity is important will also start to gravitate towards “privacy coins” or might even issue them on their own.
Foreign customers won’t have to deal with currency conversion fees, and it doesn’t matter if you won’t accept their nation’s currency. Your business doesn’t have to worry about securing account information, and you don’t have to worry about the payment clearing. Nor can someone issue a chargeback as easily as they can with credit cards. And many hybrid solutions are being introduced as well, such as debit cards issued to cryptocurrency holders.
One of the few obstacles to mass adoption is issues with scaling and block size that are slowing down the verification of transactions. But many cryptocurrencies and third-party solutions are already being introduced to tackle these issues and we can expect future currencies to be designed with scalability in mind.
Stabilization will Push More Adoption
Part of the early excitement of cryptocurrency was the potential of making a lot of money as it skyrocketed, but this was coupled by terror as its value fell just as dramatically. Cryptocurrency values have started to stabilize and they are becoming a mature alternative to fiat currencies, though values can still fluctuate. But as the market stabilizes and gambling speculators are slowly being replaced, we can expect cryptos to become much less volatile in the future, which is now one of the only obstacles to mass adoption.
But that doesn’t mean that there won’t be a cryptocurrency trading market, however. Just like any currency, we can expect to see more sophistication when it comes to financial instruments dealing with crypto. And we can already see the changes right now, with exchanges already allowing traders to short positions and publicly traded ETFs just around the corner. If you want to learn the most recent developments on upcoming crypto ETFs, coins.live has the latest crypto news.
It Opens Up Opportunities
The fact that cryptocurrencies transcend national borders and will work for anyone with a smartphone makes it possible for people in developing nations to access credit they otherwise couldn’t. If someone is concerned about the stability of their own currency, they can buy cryptocurrency and hold it in a wallet without having to deal with financial institutions.
That money is available no matter where they go, and it can’t be limited by currency controls or taken from you. This explains why the biggest cryptocurrencies are seeing users in 160 countries, and global transaction volume is doubling year after year. The other explanation is that people can cheaply send remittances to family from anywhere in the world without paying steep fees.
Blockchain and Similar Systems Are Finding New Uses
Blockchain is the technology that tracks the purchases and transfers of most cryptocurrencies. And the blockchain itself will have a huge effect on the world of business in the future. It allows for an anonymous, secure, and distributed asset tracking system.
It is being used to track valuable assets like real estate deeds and intellectual property rights. It allows small businesses and content creators to license intellectual property use like 3D printed plans and music, tracking each use and sending payments back to the rights holder. It is starting to be used to authenticate educational records. Smart contracts are being used to track the purchase and sale of assets, the delivery of services, and the transfer of money.
All of these records can be verified by anyone and are independent of one organization’s IT infrastructure. This transparency creates true auditability. That increases trust, reduces the possibility for errors, and manages to protect records long term.
Conclusion
Cryptocurrencies have moved from speculative investments to viable alternative currencies. While they aren’t being utilized everywhere, they are being used in a number of places and they open up opportunities in their own right.
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Contributed content
Founder Dinis Guarda
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