The Future Of Cryptocurrency And Its Usage
The cryptocurrency market is a market that trades various digital coins and tokens. Since its inception some years ago, the market still appears confusing to observers from the outside. However, cryptocurrency has experienced exponential growth due to the fact that it became attractive to people who had intentions of using it as alternative money. Of all the cryptocurrencies, Bitcoin is currently the most popular.
Cryptocurrencies are decentralized, needing no central bank or institution, and are already creating disruptions to the system of industries, changing the world as we know it. The most obvious disruption is to the finance sector; however, its impact extends well beyond the banking industry into other sectors such as healthcare.
The Future Of Cryptocurrency And Its Usage is bright and splendid. Cryptocurrency has gained worldwide acceptance with usage and potential applications in the following areas.
Usage of Cryptocurrency :
Money transfers are easier, faster, and cheaper
Cryptocurrency allows payments to be sent and received at a low cost and high speed, compared to traditional finance or banking systems.
A $99 million cryptocurrency transaction using Litecoin took less than three minutes to complete and cost the sender less than $1 in transaction fees. Imagine if that amount had gone through the current finance industry; service and transactions fees would be through the roof, and the transaction would have taken days, especially if it was from one country to another.
Cryptocurrency transactions and transfers with low fees make an excellent way of performing international money transactions.
Cryptocurrency is based on the blockchain technology which has useful applications in helping to tackle electoral malpractices and fraud. The basis of the integration of the blockchain tech into electioneering procedures is the incorruptible nature of the blockchain. Once votes are cast by voters, blockchain prevents anyone from modifying or subverting the way the votes are stored, ensuring the process is free of interference.
Cryptocurrencies are beginning to find relevance in the area of wealth management, in spite of the risks associated with the digital currencies. Wealth management is a professional service in which investment advice, financial advice, tax and accounting services, estate planning, retirement planning and legal counsel are offered at a set fee. In the domain of cryptocurrency, wealth management is done by providing investors with financial management services for their cryptocurrency funds and assets. A typical example of companies that offer such service is Swissborg, a democratic community that allows investors to manage and increase their portfolio of cryptocurrency assets.
Cryptocurrencies are now being used by many startups to fund their ideas, products and services. Focus has shifted from raising funds through bank loans and fundraising websites like Kickstarter to using cryptocurrencies. A typical example is through initial coin offerings (ICO). This new way of fundraising makes the money easy to track and obtain, revolutionizing the entire process of fundraising.
Cryptocurrencies found its way into the educational system. As time passes, more schools are going past the traditional cash or cheque payments and wire transfers to accepting cryptocurrencies as a form of fee payment. Examples of such schools are found in the US, Germany, Switzerland, and Cyprus. University of Nicosia, Cyprus was the first university to accept tuition fees to be paid in Bitcoin.
Bitcoin is the still the most popular means of such payment. However, other cryptocurrencies are already joining the train, with even wider coverage in the foreseeable future.
With the growing acceptance of cryptocurrencies by retailers as a means of payment for transactions, the travel industry is not left out. Travel agencies that offer flight purchase services, hotel reservation bookings, car rental, and cruises have already integrated Bitcoin into their payment platforms. An example is Cheapair.com which has been accepting Bitcoin since 2013. Virgin Galactic, a theoretical space travel adventure, already accepts bitcoins for space travel bookings.
Transparency In Businesses
Cryptocurrencies have the potential to foster ethical business practices and encourage transparency. This is possible is because blockchain is a platform that allows transactions to be tracked with complete transparency and flawless record keeping. As a result, businesses with questionable ethical practices can be monitored and put in check through the implementation of the blockchain technology.
Stymying Corruption In Charitable Organizations
Some charities are known (or suspected) for their corrupt practices and embezzlement scandals. With cryptocurrencies, charitable organizations can be kept accountable because blockchain tech eliminates some of the challenges that charities face, such as fund leaks. The World Food Programme (WFP) has already implemented the blockchain tech into its campaigns in order to securely distribute cash assistance to those that are in need of food.
Supporting eco-friendly systems
Cryptocurrencies are deriving application in the environmental industry. Cryptocurrency tokens and credits are being sold by environmental firms to residents for them to switch to solar-based power units and less carbon-based systems. An example of such firms is Brooklyn Microgrid. The Brooklyn Microgrid project allows citizens to buy and sell locally produced PV power from one another by carrying out the transaction via blockchain tech.