The development of cryptocurrencies has already made its presence felt across a range of industries. Cryptocurrencies operate on decentralised blockchain platforms, and the technology has the potential to cause disruption across many aspects of global economies.
Today, cryptocurrencies are continuing to experience significant growth in terms of market capitalisation and adoption. At the beginning of the year, Statista reported that the cumulative market capitalisation of crypto assets had totalled $237.1 billion, while the global blockchain market is forecast to grow to $23.3 billion by the year 2023.
Such astronomical figures only help to give us an insight into how the adoption rates of crypto assets are expanding, and how influential blockchain can evolve to become. For cryptocurrencies to fully realise their potential, the likes of Bitcoin and Ethereum along with stablecoins will have to become an influential presence in a range of industries that have operated for decades prior to the explosion of altcoins onto the scene.
Let’s take a look at some of the industries that are most ripe for cryptocurrency disruption in the coming years:
The world of finance has kept largely unchanged for centuries. For investors, there are many who feel like they’re encountering a brick wall due to outdated financial setups.
However, blockchain has the potential to revolutionise the industry of banking as a whole, and cause the industry to cater better towards usage across borders.
Blockchain technology paves the way for flawless international transactions within minutes. The distributed ledger is highly secure and untamperable, meaning that large exchanges of money can take place in confidence.
Cryptocurrencies have even been developed on blockchain technology with the sole purpose of facilitating swift transactions. Ripple, for example, allows users to make transactions using a recognised digital currency overseas both quickly and simply. In a world that’s continually getting smaller, with international payments becoming more commonplace, a future of crypto transactions seems like an efficient way of futureproofing finance.
The problem with global supply chains is that they’re subject to a range of logistical issues and mistrust. Here, blockchain has the ability to use distributed ledgers to boost levels of transparency and broker swift agreements between parties without the need for mediators. Cryptocurrencies can pave the way for payments across borders without any further delay due to exchange rates and international fees.
There is already a range of cryptocurrencies that have been developed with the sole purpose of improving the usability of established supply chains across global industries. Notable coins include the WaltonChain and Modum - but the market for supply chain crypto is far-reaching.
The life of a freelancer can be a difficult one. It’s essential that payments are collected efficiently and without any lingering complexities or misunderstandings.
Take the field of copywriting. The path from researching an idea all the way to committing it to paper can be an arduous one without sufficient instruction or a clear deal in place. Blockchain helps parties to establish smart contracts that can create binding agreements between a freelancer and a client. If, say, the client has requested a 1,000-word article, the copywriter will be able to automatically receive payment once said article is completed and forwarded to the correct party.
In the wider field of freelancing, cryptocurrencies can pave the way for micropayments to take place. This means that writers could literally arrange payment per each word they type, or designers could charge per each minute they’re active on their software.
Gaming has already developed into a multi-billion dollar entity worldwide and has built a reputation for adopting digital technology way ahead of the curve. Once again, this is an industry clearly ripe for the implementation fo crypto-based micropayments. Cryptocurrency developers have already identified an opportunity to create a marketplace that allows players to buy, sell and trade in-game content online. Secure blockchain networks can additionally create a secure ecosystem in which players can safely trade their items.
Platforms like Enjin and RevolutionVR have already embraced the use of blockchain within the world of gaming, and it’s clear that the industry is readying itself for a significant level of crypto-based disruption as the decade progresses.
Once again, cryptocurrencies like Ripple have geared up their adoption campaigning on the basis of providing much more convenience when it comes to transactions. It’s not outlandish to say that blockchain and cryptocurrencies have the potential to overhaul the entertainment industry - and music, in particular.
Through quick, easy and secure micropayments, it could be possible for musicians to make money on their music without the need for record companies to act as a middleman.
Micropayment platforms like Coil can help content creators as a whole to showcase their works and sell them on to buyers, who would make small instant payments to either listen or download a song, video clip, or capture.
With cryptocurrencies set to influence a range of industries while making collaboration a much easier process though quick and easy cross-border payments, it’s reasonable to expect the influence of the industry’s big hitters to grow as the technology develops. While there may be some regulatory hurdles still to overcome, it’s clear that both crypto and blockchain are going nowhere any time soon.
All views and opinions expressed in this article are the opinions of the author and not FXStreet. Trading cryptocurrencies or related products involves risk. This is not an endorsement to invest in or trade any of the cryptocurrencies, stocks or companies mentioned in this article.