Cryptocurrencies have dominated the headlines over the last year, but they have been silently creating a revolution in the world of transactions.
There are widespread benefits to the use of cryptocurrencies, which are based on the blockchain technology. Even though there are several hundred well-established cryptocurrencies, bitcoin happens to be the most popular and widely known of its kind. There is a real threat for the regular FIAT currencies, which are trying hard to resist the change. However, more industries are seeing the widespread benefits of adopting cryptocurrencies. Here are the top seven industries that will adopt bitcoin in the next five years:
Even though cryptocurrencies have the potential to replace the banking sector in its current form, this industry could be amongst the first to adopt bitcoins on a large scale. Banks would welcome working together with cryptocurrencies as a better option rather than being overpowered by the same. A number of banks have been in discussions to adopt the technology behind cryptocurrencies. Ripple is one of the names creating a major impact in this space, but the popularity surrounding bitcoins make them an ideal option to cut out the middleman in the banking sector.
Hedge funds have long been regarded as the key player in the world business markets, as they control huge sums of money. After trading in markets across the world, the hedge fund industry has been taking a long hard look at the cryptocurrency space with interesting recent years. Bitcoin is the preferred choice for the hedge fund industry to place the initial steps. At the start of 2017, there were less than 50 hedge funds involved in trading on cryptocurrencies. Today, there are more than four times this figure and this industry is expected to meet with a rapid rise going forward. Hedge funds are obviously attracted by the immense returns provided by cryptocurrencies.
Online casino space has been growing a lot in the last couple of years, but the tough regulations in the industry coupled with the threat from hackers mean that there is even bigger space left to exploit. Cryptocurrencies are a way to tap this space, as they are now online casinos to appeal to new players from around the world. They can open their doors to this new audience, who can benefit from the lower transaction costs involved when transferring funds through bitcoin – even after the astronomical rise in price in 2017. It is not just the online casino segment that has benefited from cryptocurrencies, but land-based casinos are also among them. According to a post from BetWay, they have not seen land-based casinos instantly adopt to bitcoins, citing conversion issues with the currency’s rapidly fluctuating exchange rates.
The Internet advertising industry has suffered from a lack of protocols. Advertising, though, is a very powerful medium with an Internet and bitcoins can take it to the next level. Rather than just relying upon AdSense, which is effectively a middleman from Google, users can take their advertising potential and revenue to the next level by using bitcoins and associated block chain technology. Apart from taking out the intermediaries, the anonymity of the user is also protected while eliminating the possibility of malware injection.
Music and Entertainment
The growth of Internet has led to the emergence of many entertainment entrepreneurs, as they no longer had to rely on the opportunities provided by a handful of companies. Instead, the Internet provided them with the convenience of a decentralised medium. It helped them to spread their wings and allow their content to be discovered in several parts of the world. Yet, Internet is certainly not decentralised now and there are several restrictions placed in various parts of the world. Bitcoins and block chain technology help overcome the barriers, and can help independent artists receive more for their talent and work. It would not be surprising to see more music right holders switch to bitcoins as the preferred payment option.
Supply Chain Management
Now that the lower transaction costs have gone out of the window, the universally accepted advantage of bitcoin is the security and transparency. The supply chain management could benefit immensely from these attributes. Blockchain technology can create a tamperproof record for the transactions that have been made, while the bitcoin currency can cross borders with ease. According to Coin Central, it can also facilitate in faster transactions, based on two fundamental factors being the amount of network activity and the transaction fees.
It has long been expected that Amazon would accept bitcoin payments. There would be a lot of benefits for e-commerce sites if this expectation turned out to be true. As one of the pioneers of the e-commerce industry, Amazon is involved in billions of transactions around the world. Going down the route of bitcoins can help make the payment process much simpler – especially in the case of a return. It can also help bring more sellers into the platform, thus providing a win-win situation for all sections.
Originally published in BitGuru