Cryptocurrency: it’s becoming such a household name that even your grandparents probably know about it. In fact, they might even have a little tucked away in their digital wallet. 😉
In all seriousness, cryptocurrency is enjoying an incredible rise in popularity, but this is not to be confused with a rise in value. As everyone is well aware, Bitcoin has taken the world by storm and is now considered by many to be a promising investment opportunity.
We’re even seeingpeople in our own dividend growth investing community switching investing strategies, opting to invest solely in crypto. Last week, I personally had a good friend mention he purchased some digital currencies for the first time!The Cryptocurrency Pig? Not going to happen… i’ll stick with my dividend portfolio.
The volatile nature of certain digital currencies is not quite indicative of the public’s interest or even disinterest in cryptocurrencies in general.
Today, we’re ignoring the investment potential/risk and taking a closer look at how cryptocurrencies and blockchain technologies are making their way into the mainstream inside of four business industries.
Agriculture
While it might go against your misconceptions of the farming industry, the world of agriculture is a tech leader. And so, it makes sense that once they realized the power of blockchain technology and cryptocurrencies, they would be on board.
Mobius’ token, known as MOBI, facilitates transactions between producers and distributors in nine countries. Doing so allows farmers the opportunity to bypass traditional banking methods and save a ton on fees and charges.
Although this may not be quite the mainstream use that you were expecting, it is notable nonetheless. One could see it having a significant impact on how producers and top distributors handle their transactions.
Gambling
Cryptocurrency and gambling make sense. Whether it’s online or at the racetrack, the ability to bet or claim winnings without handing over credit card information or walking around with a hefty wad of cash is priceless.
Real-world casinos have yet to dip their toes in the water, but there is alreadya revolutionary online poker roombuilt on blockchain tech. This platform, CoinPoker, has already garnered a lot of interest from online poker players eager to enjoy the benefits of gambling using cryptocurrency instead of traditional means of funding.The fact that the platform is increasing in popularity indicates that crypto is on the minds of people who gamble online.
Real Estate
While paying for smaller items with cryptocurrency may seem a little strange, given that one Bitcoin can be worth thousands of dollars, for larger purchases, it’s taking off in a big way. For example, realtors around the world are now accepting digital currencies, and property sellers are lapping it up.
Developers in England started the ball rolling last year when they sold two houses with Bitcoin used as the paying currency. The previous owners of the properties would have enjoyed a significant profit had they sold their coins when the currency spiked at the start of the year. And this potential for gains makes it quite an attractive option for people selling their homes. Especially for early investors who want to turn their digital assets into physical assets. We are also seeing realtors here in the U.S. follow suit.
Technology
Obviously, we can’t leave out technology. Our good friends at IBM are spearheading the blockchain push into big business. They have developed a blockchain platform that they are billing as practically a one size fits all solution to all business transactions. With cool terms like hyperledger fabric and ultrahigh technology, how could it not be a success?
Cryptocurrencies and blockchain seem to have a place in our future. I, for one, have not made any investments in any cryptocurrencies. However, I do believe it’s a worthwhile technology to watch as there is clearly something to the underlying blockchain technology. What business wouldn’t want hyperledger fabric?
While these four industries may not have an immediate impact on our daily lives or investments, they do indicate the shape of things to come. It seems that perhaps it’s only a matter of time before more industries climb on board the blockchain ship. Some talking heads now predict that by 2025, the public will have fully embraced cryptocurrency with such vigor that its use could even surpass real-world cash. We’ll see about that.
FAQs
The rise of using Cryptocurrency in business has increased exponentially. Due to the ease, speed, and anonymity of transactions, it is not uncommon that you could start receiving funds within minutes, as opposed to bank transfers which can take up to 3 working days.
What's the big deal about cryptocurrency? ›
Cryptocurrencies are generally used to pay for services or as speculative investments. Cryptocurrencies are powered by a technology known as blockchain. Crypto prices are extremely volatile, and the industry is filled with uncertainty. There are tax consequences to buying and selling cryptocurrencies.
What caused the rise of cryptocurrency? ›
A major factor in bitcoin's rise since the start of the year has been the approval by the US financial regulator in January of exchange-traded funds [ETFs] – a basket of assets that can be bought and sold like shares on an exchange – that track the price of bitcoin.
How will cryptocurrency affect businesses? ›
Using crypto in daily operations could help develop new means of innovative commerce. That's in addition to possibly extending the company's reach in the marketplace—not only to new customers, but also to new counterparties.
Why is cryptocurrency important in business? ›
Cross-border transactions
Cryptocurrency offers an alternative, enabling businesses to buy and sell products without engaging a bank or payment processor that might charge additional fees for an international trade. While the value of cryptocurrency can and does fluctuate, the prevailing value is consistent worldwide.
Why do businesses go crypto? ›
Initial Coin Offerings (ICOs) allow companies and entrepreneurs to raise money through cryptocurrencies, in exchange for a 'token' that can be sold on the secondary market or used in the future to gain products or services.
Is cryptocurrency good or bad? ›
Cryptocurrency is a safe investment or not? Like any other investment, cryptocurrency is not a risk-free investment. The market risks, cybersecurity risks and regulatory risks, as cryptocurrency is not issued or regulated by any central government authority in India.
Do most people lose money in crypto? ›
Losing more money than you make
It's not that no one has made money off crypto. In fact, our survey finds that of those who've had crypto, 28% sold it for more than it was worth. But a higher rate of investors — 38% — sold their crypto for less than it was worth when they bought it. Another 13% broke even.
Can you still get rich with cryptocurrency? ›
It is possible to make $100 per day, but there is no guarantee or specific technique you can use to ensure it happens. Cryptocurrency trading, lending, staking, and investing all come with significant risks because it is such a volatile and unpredictable asset.
Which coin will reach $1 in 2024? ›
While there are many promising options in the crypto world for 2024, one stands out as a potential game-changer: $PIKA. In the era of GameFi, where billion-dollar tokens reign supreme and GameFi projects are locking in billions, $PIKA emerges as a frontrunner.
Bitcoin's price changes because of its supply, the market's demand, media and news, and regulatory changes. Some research suggests that the cost of producing a bitcoin also influences its prices, but most reports used assumed data rather than facts.
What is cryptocurrency in simple words? ›
What are Cryptocurrencies? Cryptocurrencies are digital tokens. They are a type of digital currency that allows people to make payments directly to each other through an online system. Cryptocurrencies have no legislated or intrinsic value; they are simply worth what people are willing to pay for them in the market.
How are businesses using crypto? ›
Companies can use cryptocurrency for business purposes such as purchasing goods and services, remunerating employees, investing in other cryptocurrencies, and issuing them as dividends to their shareholders.
Is cryptocurrency actually being used? ›
These findings confirm 2022 data from the US Federal Reserve, showing just 2% of the adult US population made a payment using a cryptocurrrency, and Sweden's Riksbank, showing less than 1% of Swedes made payments using crypto.
How many businesses are using cryptocurrency? ›
As of September 2023, 15,174 businesses worldwide accept Bitcoin, with around 2,300 of those businesses operating in the US. The leading sectors embracing Bitcoin include Gambling, Tourism, Banking, Food, and Retail industries.
What is the growth of crypto currency users? ›
In the Cryptocurrencies market, the number of users is expected to amount to 992.50m users by 2028. User penetration will be 10.76% in 2024 and is expected to hit 12.39% by 2028.
Is the use of cryptocurrency increasing? ›
The popularity of cryptocurrency has grown in recent years as access to crypto has become easier. The asset is still incredibly volatile, and in 2022 rising interest rates caused selloffs in Bitcoin, as skittish investors offloaded speculative assets.
How has crypto helped the economy? ›
Global Trade: Some businesses are starting to accept cryptocurrencies for international trade transactions. This can streamline cross-border payments and reduce currency conversion costs, potentially benefiting global trade efficiency.
