Since 2009, when Bitcoin first snuck onto the scene, we have seen cryptocurrencies make tremendous progress. While most thought of them as a fast-moving fad, a select number recognized their immense potential. Now, we can all see cryptocurrencies for what they are—-tools that can be used to reshape entire industries, ranging from online gaming and security to grocery shopping and banking.
With all the changes, it’s easy to get lost when trying to figure out what’s actually happening with cryptocurrencies now, which is why we’ll take a closer look at which industries are being impacted the most and what this means for the regular person.
Big Money Is Being Made in Finance
It would be foolish for us to start this article without first discussing how the finance industry is currently being upended by the huge strides made by the growing number of people using cryptocurrencies regularly. While the banking sector was once traditional by design and seemingly immovable, it’s now under serious threat, thanks to these digital coins.
Decentralized finance has the potential to be a complete game-changer, as it doesn’t rely on traditional institutions and instead uses smart contracts that are backed by the blockchain (a digital ledger that records all transactions).
In theory, this should make it easier for users to lend, borrow, and trade assets without using a traditional bank or credit union. Instead, they would secure loans using cryptocurrencies as their collateral. At the same time, transaction fees should also be lower due to the reduced need for complex paperwork and high-earning bosses.
While we’re on the point of fees being lower, cryptocurrencies also have the potential to make it much cheaper for users to send funds to other countries. As we’re sure you’re probably aware, it can be very expensive to send money abroad using traditional banking tools, and the process can take several days. While it’s possible to send crypto coins at no cost, many prefer using all-in-one services that pride themselves on offering very low handling fees.
E-Commerce and Simpler Online Transactions
As you have probably noticed, many websites are now accepting cryptocurrencies as a form of payment, although even the most hardcore enthusiasts will admit that more work is needed before they become the go-to choice for shoppers.
Shopify is arguably the most popular e-commerce platform in the world, and the fact that they now allow cryptocurrency payments is a sign that this isn’t something that will go away anytime soon. If such a major player in the world of online shopping is willing to devote so much time and effort to facilitating this, consumers should feel confident that it’s something they should be open-minded toward.
It isn’t just consumers who stand to benefit from the wider implementation of cryptocurrencies – business owners should also be optimistic. For businesses, the advantages are clear – they include:
- Faster transactions (which take minutes instead of days).
- Lower fees (compared to traditional payment providers).
- Fewer fraud claims (thanks to irreversible transactions).
Online Gaming and Gambling
Gamers are becoming increasingly frustrated with how many game publishers are making it almost mandatory for players to pay to win, with in-game purchases becoming central to progression. For example, if players don’t pay for battle passes and loot crates in certain games, they’re unable to unlock the best perks and weapons, making it much harder for them to beat professional players who are willing to do whatever it takes to win.
With the shift toward the metaverse having the potential to forever change how we think of gaming, cryptocurrencies are sure to have a central role. Games like Axie Infinity and The Sandbox allow players to earn cryptocurrency by completing in-game tasks, similar to how cryptocurrency miners use their computers to complete tasks and obtain tiny slivers of coins.
By giving players an incentive to play (other than bragging rights should they win), developers can capitalize on this current wave of popularity and capture a new generation of players. This is just as true for casino game developers, especially as we see more games feature cryptocurrency coins. For those wanting to better understand how crypto casinos work, there are many handy guides available online.
Entertainment and Embracing Creativity
While it’s fair to say that the hype around NFTs came and went in the blink of an eye, the idea behind them is a sound one. In a world filled with fraud and counterfeiting, NFTs provide a genuine way of helping artists protect their work and ensure that nobody can easily impersonate them, which also protects potential buyers who want to avoid imitations, no matter how convincing they might look.
With cryptocurrencies rising in popularity and NFT websites being easy to navigate, it’s incredibly easy for artists to sell their work for a fair price without needing to work with intermediaries, such as galleries and auction houses, which traditionally charge huge fees to both sellers and buyers. While NFTs might have declined in popularity since their peak in 2021, at which time Beeple sold a single piece of artwork for $69.3m, it’s only a matter of time until this concept becomes more widely used in the real world.
Future Implementation
If cryptocurrencies continue to grow at their current rate, it won’t be very long before consumers can use their digital wallets in real-world grocery stores. In many shopping malls around the world, you’ll even see ATMs that have been specially designed to allow consumers to buy digital assets while they’re going about their daily business.
While it’s hard to say which other industries will be the most suited to having cryptocurrencies as the primary payment method, it’s much easier to imagine how the technology can be used in wider parts of society.
From blockchain ledgers and smart contracts being used for tenancy agreements to NFT technology being used by musicians to protect their intellectual property, the future looks bright for those who can implement the latest developments and make them accessible to the general public.
