>>>Impacts of cryptocurrency in the real world.
Impacts of cryptocurrency in the real world.2019-09-24T15:25:06+00:00

In 2017, Cryptocurrency, or digital currency, was driven to all-time highs by great hype and demand. This was soon followed by the nose diving event of 2018 bear market, which scared many away, but also turned many amateur traders into seasoned traders. Although the nascent technology is still at an early stage, it offers more than just a speculative asset by bringing about new and unique financial benefits to the economy. The groundbreaking concept of blockchain and the distributed ledger is a clear indication that the world is ready to transform itself to the next level of digitalization, the WEB 3.0. As early as the revolution may be, technology and society reach a point where can only go as fast as its regulators. Beyond this barrier, digital assets are equipped with features set to disrupt our current economy across industries such as Banking & Finance, Remittance, financial technology and monetary systems as a whole.

Cryptocurrency is an internet-based medium of exchange which uses cryptographic functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability (Rosic, 2018). These mediums of financial transactions have the capability to be the fastest and cheapest payment systems in the world.

Impacts

  1. Banking & Finance: A paradigm shift in the conventional methods of banking might occur in the near future. The concept of centralization has been embraced for hundreds of years and the introduction of bitcoin and its underlying technology (blockchain) gives rise to a new concept called decentralization. This concept gives more financial liberty to consumers and their own personal financial management, ergo increasing transparency and freedom of the consumer’s money. In contrary to that of traditional centralized entities (banks) which do not offer such benefits. Most importantly, upcoming cryptocurrencies are bringing the possibility of banking services to 2 billion unbanked people around the world (Buchko, 2018).
  2. Remittance industry: Alternative methods of remittance like Bitcoin are gaining traction as a way to send large amounts of money peer-to-peer (P2P); in one example a bitcoin ‘whale’ moved $468 million worth of bitcoin for less than $400. If we use TransferWise to send the same amount, they would’ve charged $1,684,800 to send $468 million, as opposed to under $400 (Canellis, 2019).
    There are plenty of cryptocurrencies at the moment that has low transaction fees. This is summed up on the motley fool website.
    Bitcoin: $1.184
    Monero: $2.587

    Dash: $0.363
    Ethereum: $0.347
    Litecoin: $0.198
    Bitcoin Cash: $0.097
    EOS: $0.0105
    Ripple: $0.0037
    TRON: $0.0000901
    Another alternative is our very own app called Hydro Pay. Hydro Pay is a Zero-fee P2P payments app that is very similar to Venmo while Hydro X (integrated into Hydro Pay) is a revolutionary application for remittance payments. As of 2018, global remittances are a $600 Billion market. Sending remittances with this app will drastically lower fees for cross border payments for P2P and B2B transactions. Follow this link to learn how Liquid Exchange and Hydro Labs plan to disrupt this industry together.
  3. Monetary systems: The conventional monetary system is arguably flawed. Banks have the power to print money causing inflation in the dollar value, unlike Bitcoin and other cryptocurrencies which are capped in supply. This reduces the effects of inflation (oversupply), therefore keeping the demand of the digital currency consistent. Bitcoin also has another mechanism called ‘halving’ which cuts down miner rewards by half, forcing demand in the market (scarcity increases).
  4. Fintech: Fintech is a broad topic but as far as innovation goes, blockchain is definitely the one-stop solution for the current challenges faced by fintech (Learn how Hydro Labs is value adding to fintech today). Because identity in the blockchain is digitized and interoperable, identities can be monetized by consumers, opening a whole new concept of business which drives value to users data. This works by incentivizing users in exchange for their information such as survey questionnaires. Data collected off the platform is more refined and pure, making it simpler to formulate solutions for problems in a bigger picture. Lastly, the data is interoperable and private, making it more seamless for the exchange of information and rewards in a single application.

References:

Buchko, S. (2018). The Impact of Upcoming Cryptocurrencies on the Financial Industry. Toshi Times. Retrieved from https://toshitimes.com/the-impact-of-upcoming-cryptocurrencies-on-the-financial-industry/.

 

Canellis, D. 2019. Bitcoin whale moves $468 million crypto-fortune for less than $400. The Next Web. Retrieved from Bitcoin whale moves $468 million crypto-fortune for less than $400.

 

Williams, S. 2018. Which Cryptocurrencies Have the Lowest Transaction Fees? The Motley Fool. Retrieved from Which Cryptocurrencies Have the Lowest Transaction Fees? — The Motley Fool.

 

Thumbnail background. (n.d.). Photo by Dmitry Demidko on Unsplash. Retrieved from https://unsplash.com/photos/eBWzFKahEaU.

 

Vector art 1. N.d. Designed by Blossomstar / Freepik. Retrieved from https://www.freepik.com/free-vector/banking-background-design_1033276.htm#page=1&query=banking&position=0

 

Vector art 2. N.d. Icon images made by https://www.flaticon.com/authors/tulpahn. Retrieved from www.flaticon.com

 

Vector art 3. N.d. Designed by macrovector / Freepik. Retrieved from https://www.freepik.com/free-vector/money-coin-paper-cash-icon-flat-set-isolated-vector-illustration_1159277.htm#page=1&query=cash&position=28

 

Vector art 4. N.d. Designed by macrovector / Freepik. Retrieved from https://www.freepik.com/free-vector/money-coin-paper-cash-icon-flat-set-isolated-vector-illustration_1159277.htm#page=1&query=cash&position=28

 

Vector art 5. N.d. Designed by rawpixel.com / Freepik. Retrieved from https://www.freepik.com/free-vector/characters-people-holding-blockchain-network_3107652.htm#page=1&query=fintech&position=14

 

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