Have you ever wondered how the world of cryptocurrencies can change the future of business? Read on to learn about some of the implications this new and revolutionary currency may have on the world. An estimated 15% of Americans currently own cryptocurrencies, and regardless of anyone’s personal stance on the potential of this growing market, it will undoubtedly have a major impact on businesses and our world in the future.
Customers will want to use it as a form of payment
This is one major way that businesses will be affected down the line. Companies and organizations that do not get on the crypto wagon quick enough run the risk of being left behind when it comes to this truly unique payment method. Due to the ease of use, high security and privacy features, and instantaneous nature, cryptocurrency is increasingly becoming a preferred method of payment and will continue to gain popularity as it becomes more widely adopted. This is also set to make things much simpler for both vendors and buyers. Instead of depending on credit card machines that involve some degree of human error and the manual counting of change, the process of purchasing and selling is greatly streamlined when it comes to cryptocurrencies.
Paying and being paid will become infinitely simpler
As it stands, the complex financial systems in place make it quite slow for you to pay out someone or to get a payment into your account. Additionally, bank transfers (particularly if they are international) tend to come with hefty fees and lengthy wait times. Cryptocurrency has turned all of that on its head by making payments, quick, simple, instantaneous, and with little to no fees attached. This creates a system of payments that is much more efficient so everything from buying a house to paying out employees becomes infinitely quicker and more streamlined. Making cross border transactions are now also more attainable than ever.
It will create a flurry of economic activity
There are so many industries currently being built around cryptocurrencies — from the non-fungible token (NFT) boom to the crypto games that are popping up in every corner of the internet, these are all creating many opportunities for financial growth. Companies dedicated to crypto gaming and digital assets are seeing a sizable boom, with the economy steadily shifting to adapt to those needs and demands. Additionally, by giving a major segment of the world that is currently unbanked access to funds, this will ultimately create economic activity and opportunity for a previously untapped segment.
Moreover, the technology behind cryptocurrencies (known as blockchain technology) can resolve many economic issues due to the nature of their structure. Blockchain systems increase trust and transparency as the data on them is immutable (cannot be changed) and the chain of events is infinitely more clear. Blockchain technology creates a realistic depiction of liquidity and the distribution of risks, and not one that is projected by analysts. In fact, analysis by the consulting firm PwC shows that blockchain technology has the potential to boost global gross domestic product by $1.7 trillion over the next ten years.
It will bridge the gap between the world’s economies.
Considering the fact that more than 30% of the world’s population is currently unbanked, cryptocurrencies will largely impact their lives as it extends them with financial advantages. New apps and programs built around cryptocurrencies and blockchain technology are working to give people with no credit history or bank accounts access to financial freedom. With these newfound financial advantages, people from all backgrounds can begin to participate in a truly free and fair economy, allowing them to feel more financially connected, enabled, and empowered. The poorly banked countries will reap the benefits of this new financial system the most, particularly in a way that is fair to all and not just a select few.
Their decentralized nature will ensure equality.
Another way that cryptocurrencies could revolutionize the world of business down the line is due to their decentralized nature. As it stands, our current financial and banking systems are deeply centralized, with all money transactions going through either a central bank or a regulatory governmental authority. Cryptocurrencies have disrupted that by being totally decentralized, allowing everyone to own and trade crypto without being subject to embargoes, bans, governmental meddling, or the like. This will impact businesses by including a larger segment of the world’s population in the economy.
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Cryptocurrencies are quickly moving from being outlandish investment opportunities to becoming widely adopted means of payment and ways of life. They give millions of people around the world the opportunity to invest, spend, and save in ways that had not been possible ever before. How will they affect businesses around the world in the future? Only time will tell, but it is bound to be impactful.