The Silicon Valley venture capital firm Andreessen Horowitz (a16z) released a report on Tuesday covering the current state of crypto adoption. It highlights Ethereum as the leading blockchain network for developer support but contains very little mention of Bitcoin’s growth. The Potential of Web 3 The VC firm broke boiled down its report into five key takeaways about the current state of crypto. It began by suggesting that the industry is in the middle of its fourth ‘price innovation’ cycle.…
Cryptocurrency has evolved from a geeky fad to a stable market ready to rival traditional banking systems’ self-entitled positions. Its promises of instant asset transfers, low or non-existent transaction fees, and decentralized networks are irresistible to many sectors out there.
In today’s unstable environment, several industries are already adopting cryptocurrency, and others strongly consider it. Considering the obvious advantages that crypto integration brings, we look into how some of these sectors may change forever once they make that decisive step forward.
The Benefits of Using Cryptocurrency
Before we go any further, we should take a second to review some of the many benefits that most industries would get from adopting cryptocurrency.
First off, the concept of virtual money transactions taking place on a decentralized blockchain removes a middleman’s necessity. Companies, investors, and other entities no longer require the validation for a transfer from an all-seeing, all-controlling central authority.
Low transaction fees
The lack of a middleman diminishes the cost of a transaction fee down to almost an insignificant value. So, money transfers through cryptocurrency weigh less on the parties’ budgets that engage in the transaction.
Almost instant money transfers
Cryptocurrency is part of a high-performance system where transfers and their validations take place with lightning speed. Users no longer have to wait for several days in a row for a central banking institution to greenlight their contract.
The use of cryptocurrency takes place within a highly-secured network that uses encrypted information to validate a transaction. User data protection and privacy benefit from a high standard of security that other financial institutions cannot provide.
1. The Healthcare System
The recent pandemic outbreak showed how important it is to operate large scale transactions in the virtual medium rather than through traditional banking protocols.
Firstly, most countries have been caught off guard by the rapid spread of the COVID-19 virus. Some of the most advanced economies had to admit that their healthcare systems lacked the necessary equipment to fight off or contain the disease.
Many governments engaged in last-minute auctions for basic medical equipment. The importance of having large funds of rapidly transferable assets like Bitcoin can become clear throughout the crisis.
Secondly, some medical experts considered that physical money in banknotes and coins has been partly responsible for the disease’s quick spread. Since the virus can last for several hours on various surfaces, transporting it via commercial engagements ensured a large population’s contamination in a short span.
This unfortunate label of “disease carrier” that fiat money received will forever escape entirely digital assets like cryptocurrency.
2. The Entertainment Industry
The world is steadily entering an era where people will consume more online entertainment. The advent of social distancing will bring fewer people into theaters, stadiums, cinemas, or concert venues. As direct interactions between people will be decreasing, so will the need to exchange real, physical currency.
The surge of online payments will require quicker transfer times, lower transaction fees, and an enhanced security level for service providers and users. Cryptocurrency offers all of these features and many more to convince the big entertainment companies to adopt it as a means of payment.
3. The Education System
Education is another sector looking to transition from the traditional public gathering to online learning and engagement. Schools, colleges, and other learning institutions should soon provide online platforms for teachers and students.
These platforms could very well introduce payments, credits, and salaries in the form of cryptocurrency. Students can benefit from smaller fees on their loans and can even repay them through the tokens they earn to get high grades.
4. The Gaming Industry
We know that the gaming industry is one of the first sectors to embrace cryptocurrency. The digital world of gaming can provide additional rewards besides the thrill of acting in a virtual universe.
These rewards can easily come in the form of tokens. Players can use them to pay for their progress within a game or for purchasing other entertaining features. It remains to be seen if the game developers will opt for already established cryptos or release their digital tokens.
5. The Hospitality System
Nearly all the sectors in the hospitality industry would benefit from the adoption of cryptocurrency. From hotels to restaurants, bars and even theme parks can reduce costs and improve their services through the tokenization of their offers
Firstly, they would be able to present their customers with additional payment methods. By paying with virtual money, the transactions would take place quickly, and they would involve lower costs. Secondly, they can manage tips and other payments through tokens rather than through untraceable physical money.
6. The Travel Industry
Booking flights, excursions, and cruises should soon be available through cryptocurrency payments. Bitcoin users could benefit from cheaper offers and quicker reservations than through the traditional banking protocol.
Additionally, airlines and other transportation sectors can implement a system of token rewards for loyal or recurring customers. They would repay their most trustworthy clients with cryptos to later use for discounts and other promotions.
7. The Social Media Industry
Finally, the social media industry is one of the most eager sectors to implement cryptocurrency. Social networks have become the advertising grounds for countless businesses that soon can rely on tokens to enhance their pools of followers and potential customers.
Facebook’s Libra project is just one of the many initiatives of combining two of the most groundbreaking innovations of the past 15 years: social media and cryptocurrency.
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