Cryptocurrencies based on Blockchain has proved to be a steady money flow strategy and are booming rapidly. There have been its highs and lows, and there have been many predictions made about its future. Despite its immense historical volatility, it still referred to as “Digital Gold”. There have been statements such as the market capitalization of the cryptocurrency sector to shoot up in the next five years, but still, nothing is promised and is still debatable.
Anyhow, for the foreseeable future, cryptocurrency space and Blockchain technology gives hope for a promising future and yet to impact a lot of industries, some for good, and some other negatively. Bitcoin’s success and popularity have successfully demonstrated the application of blockchain technology in the finance sector. Now the time has arrived to take action and figure out how it can empower other sectors and industries.
Many businesses and industries would spontaneously adopt cryptocurrencies to replace their traditional money transaction patterns resulting in the removal of all the middlemen involved and ultimately, reduce the costs of their products or services for the end-user.
Government agencies are going to transform their operations by adopting Blockchain technology and upcoming technologies such as the Internet of Things would integrate with the cryptocurrencies to render a highly scalable and secure framework for communication between IoT devices.
There would be some significant industries that cryptocurrency is going to disrupt to a great extent in the upcoming decade. Let us dive deep into them.
Industries Blockchain Shall Revolutionize
Banking and Cryptocurrency
The Banking sector has been there for over centuries and has gone through many significant improvements over the years. But, now there is time for a revolution that would transform this entire industry and nullify the existing systems that are prevailing today.
Many cryptocurrency enthusiasts around the world believe that the time has come now, to decentralise the whole system. Storing bank records on a blockchain system would be more secure, and cryptocurrencies would make the money transfer between accounts faster and cheaper. Cryptocurrencies, being decentralised, unlike fiat currency there would be no fee for transferring money from one country to another.
Other scenarios may also come into existence, including cryptocurrency debit cards offered by banks and provision of crypto loans to suitable candidates. Hence, storing cash would become routine with the help of Stable coins, i.e., the coins pegged in 1:1 ratio with a specific fiat currency. Stable coins have become popular as a way to back cryptocurrencies with assets that hold real value, much in the same way US currency used to be on the gold standard.
Some of the available stable coins PAX, USDT, TUSD, etc. A concern that arises with it that it would make it easier for people to commit fraud since it’s not easy to monitor and audit as fiat currencies.
You have often witnessed the fee charged by intermediates for micropayments, i.e., the small payments in the stores, physical as well as online. According to our currently followed system, such small transactions do not make sense because they have high overheads.
Cryptocurrencies have made it possible to save us from that hefty merchant fees, and pay a fraction of charge.
Elimination of such intermediate fees is possible by using Stable coins. Stable coins allow businesses and individuals to perform transactions, without losing money in the form of payment processing fee and retain their profit margins.
Remittance industry, on the other hand, has now become huge. This industry involves financial companies such as MoneyGram, Western Union, RIA, etc. that are engaged in cross border transfer of funds. They either use their internal system or have access to another cross border banking network.
The price of a remittance transaction includes a fee charged by the sender and a currency conversion fee for delivery of local currency to the beneficiary in another country. Cryptocurrency would make currency conversion invalid and so its cost and drastically decline the transaction fee.
This industry may get disrupted with high scale adoption of cryptocurrency and blockchain in the coming years, and the companies involved would go out of business if they fail to adopt and lower their service fee.