Alternate sectors that could benefit from the inclusion of cryptocurrency circulation
In February 2021, a Boston-based startup announced it had arranged a crypto-denominated cyber insurance policy with trading platform CoinList. Issued in partnership with Nayms, an insurance tech company based here in the UK, the move is claimed to be an industry-first.
Cryptocurrency may have started out as little more than an experimental concept, though there was no denying its game-changing potential. Over the past decade, this decentralized medium of exchange has grown into something much more concrete. Now, industry-watchers are fascinated by the possibilities that digital assets such as Bitcoin and their ecosystems present.
Of course, there is much discussion about blockchain, cryptocurrency’s supportive ledger infrastructure, and the role that could play in major industry disruption. However, there is less talk about sectors that could benefit purely from digital currency circulation itself.
Here are four sectors we’ve identified that could benefit from cryptocurrency circulation.
From Bitcoin cashback cards to the straightforward adoption of digital currencies by credit card users, the credit card industry is already ripe for crypto disruption.
If we think about it, banking and credit card usage has already gone digital. Major players such as Visa and Mastercard already have the infrastructure to support the large-scale movement of traditional currency online. It, therefore, follows that digital currency could be moved just as easily. In fact, Visa has already partnered with Coinbase to issue debit cards linked to digital currency wallets.
In addition to this, both Blockfi and Gemini have declared they’re launching credit cards offering cryptocurrency rewards as cashback on regular purchases. The announcement signals the emergence of a new type of credit card that could complement, even replace, traditional cashback reward schemes. Aimed at people who’d like to acquire digital assets without going through an exchange, it’s yet another way investment into cryptos could be made more accessible.
For years, the list of e-commerce stores accepting cryptocurrency has been growing steadily. It started back in 2014 with Overstock and now includes the likes of Microsoft, Etsy and Lush.
Cryptocurrency circulation offers many benefits to retailers, from lower transaction fees to fraud protection and reward programs. While credit card companies charge their fees by percentage, Bitcoin offers more flat rates that are adjustable depending on the transaction speed you opt for. There is also the fact that a crypto token is almost impossible to fake, while traditional credit card payment is rife with security gaps.
All this means that the adoption of cryptocurrency in e-commerce is highly likely to continue and give rise to better, faster, and more secure payment gateways. At the same time, customers are more likely to opt for payment by token at checkout when given the choice.
A multi-billion-dollar industry that has been at the forefront of digital technology and innovation for years, gaming is very susceptible to a crypto revolution. The industry is already pushing for adoption, with in-game currencies replaced by cryptocurrencies as reward for participation and crypto-powered esport tournaments with blockchain integration tools to lure developers.
In fact, with strong ties to the gaming community, coin developers are keen to give gamers the ability to buy, sell, trade, and track digital currencies. With cryptocurrency, gamers could buy and sell in-game merchandise, conduct peer-to-peer transactions, and much more to achieve better ownership over their digital assets.
Music & Content
Perhaps the most intriguing future marketplace for cryptocurrency circulation is content. It’s become increasingly difficult for content creators to sell their content and be fairly compensated. Producers usually take a large cut of the proceeds while artists are often left with only a small percentage. That’s where cryptocurrency technologies such as XRP come in. Designed to cut the middleman out, it allows consumers to pay creators directly for their content.
Is your business ready to innovate?
From credit cards and online shopping to the world of gaming and content creation, the use cases for cryptocurrency circulation are growing and becoming more compelling. If you’re considering digital currency or blockchain as part of your business strategy, then you’ll want to take advantage of government schemes to help finance your R&D.