In recent years, the growth and popularity of cryptocurrency has soared. While it may seem like a relatively new phenomenon, researchers and developers have been exploring the concept of cryptocurrency since the 1980s. However, despite many attempts to create a worldwide digital currency, it didn’t come to fruition until 2009 with the launch of Bitcoin, arguably the most famous of the cryptocurrencies available.
Even then, Bitcoin was not widely known and took time to enter the public’s consciousness, finally reaching the value of $1 in 2011. It wasn’t until 2017 that the value of Bitcoin began to take off, and while digital currencies have experienced many booms and crashes in the past two decades, they continue to attract interest and investment.
Despite these humble beginnings and Bitcoin’s early dominance of the market, society now has a plethora of cryptocurrencies to choose from, with businesses having recognized the advantages of offering cryptocurrency as a form of payment.
How Does Cryptocurrency Benefit Businesses?
As the public becomes more familiar with cryptocurrencies, it is paramount that businesses adapt to a changing landscape and don’t get left behind. Although it may seem unusual compared to more widely accepted payment methods, the advantages of cryptocurrency cannot be ignored.
Cryptocurrency is truly international and can be sent worldwide, thereby avoiding fees on foreign transactions and exchange rates. In addition, as these digital currencies are free from the requirement for banks to verify transactions, businesses save money on fees. Generally, money is received instantaneously or within minutes as banks are not delaying the process.
With prominent companies such as Microsoft and PayPal now accepting digital currencies as a matter of course, it seems almost inevitable that more and more companies will follow suit.
How Many Cryptocurrencies Now Exist?
The popularity of cryptocurrency in today’s society has led to a crowded marketplace. A decade ago, there were only 7 types of cryptocurrency. According to 2023 statistics, there are now thousands of digital currencies. Bitcoin is probably the most widely known but there are others that are carving out their own sections of this growing market.
So, which are the digital currencies to watch out for? While Bitcoin is without question the most valuable, it’s also worth considering Ethereum, Ripple, EOS and Cardano as currencies of choice and there are plenty of newer, emerging cryptocurrencies that could make waves in the future.
Bringing Cryptocurrency Away From the Conceptual and Making it Tangible
For the average member of the public, cryptocurrency may seem a little fanciful. However, as technology continues to develop and more businesses take it on board, it is likely to become far more commonplace. So how can we see digital currency infiltrating everyday life?
- Retail
Shoppers may notice that large companies increasingly accept cryptocurrencies alongside more traditional payment methods. The global nature of cryptocurrency allows shoppers to access products in other countries which they may not have been able to purchase previously. Furthermore, transactions are anonymous and secure, leaving shoppers less susceptible to fraud.
- Online Gaming
As the gaming market continues to develop with a rise in mobile and online gaming platforms, it seems inevitable that cryptocurrency and online gaming are a perfect match. Consumers’ expectations are higher than ever, and digital currency provides them with a layer of protection, negating the need to provide personal and financial details. There are a significant number of gaming platforms now offering cryptocurrency as a standard payment method, from Roblox to casinos, where users can indulge in a game of online blackjack. After depositing the funds in cryptocurrency, players can begin placing wagers on each and every round of blackjack – without worry about the safety of their funds or high transaction fees.
- The Tourist Industry
Big players in the travel industry have recognised the benefits of enabling customers to pay using cryptocurrency. The nature of travel lends itself to cryptocurrency, with travellers appreciating a more straight-forward way to pay for flights, hotels, transfers and experiences. Furthermore, allowing customers to use cryptocurrency allows travel companies to connect with a new generation of crypto millionaires looking for luxury breaks.
While travel companies such as Expedia and Cheapair.com have taken the plunge with cryptocurrency, they are not alone as some airlines have also embraced this new method of payment.
Why Consumers Should Embrace Cryptocurrency
It is evident why businesses can see the benefits of allowing consumers to use cryptocurrency to purchase goods and services. However, the advantages of cryptocurrency do not limit themselves only to companies.
The use of cryptocurrency adds a layer of protection and security as it eliminates a need for a third party. When using a more traditional payment method such as a credit card, customers are required to input personal information and rely on banks to keep their information secure from hackers. Cryptocurrency eliminates that risk.
In a world where consumers expect convenience and fast, secure transactions, digital currencies definitely fulfil that brief. Financial giants such as Mastercard and Visa are also acknowledging the potential, having launched payment cards in partnership with cryptocurrency exchanges to make consumers’ lives easier. As time goes by, the public is likely to see even more widespread use of cryptocurrency in daily life.
