The tech world is full of transactions. The world of business, of course, thrives on the ability to make transactions in every single way, shape, or form. As methods of payments are constantly changing, from the methods of contactless payments to smartphone scanning, to even PayPal, we are seeing the vast scope in what we can do to pay for products and services. And not just in terms of how we pay for it in person has changed, when we go online, there are many variations on how we can pay, and the one that is fast becoming the definitive way to pay for anything is by using cryptocurrency, and, more specifically, the bitcoin. This is a form of digital currency that is fast paving the way for how we deal with our transactions online, and it isn’t even an officially recognized form of currency! But people are trading in it, and while it hasn’t reached the dizzying heights of the stock market yet, there is a major investment being made in it by all sorts of people, from businesses to the general online community.
It was invented in 2008 by Satoshi Nakamoto. Nobody knows if this is a real person or a group of programmers, but the legacy created by this unknown programmer(s) has been a big one in the last few years where its usage has increased. The ledger that the currency is monitored on is known as the Blockchain, and as users who offer their hardware or computer power to record bitcoin transactions into the Blockchain are known as miners. The concept of bitcoin mining has become a massive market in recent years, and as users have started to find methods of mining without the need for expensive computer hardware, which was an essential a few years ago, it has only served to make the demand for bitcoins more and more frenzied.
The bitcoin revolution that we are currently in the middle of is proving to be a lucrative market for many different people. Whether it is businesses that are looking for ways to process transactions at a fraction of their normal price, or those that are looking to buy products online but don’t have the standard methods of payment in their bank accounts. In fact, the very notion of bitcoins and the Blockchain being a publicly led approach to managing, taking power away from the banks and building societies, is something that has left many organizations quaking in their boots. Due to the way we purchase items, the bank acts as the processor, and take a fee for their services, which we don’t see. But because the bitcoin process means that we are in control of the finances, i.e. via the Blockchain, and the cryptocurrency market means that it is one currency that we can all access. So there are no transaction fees, or we don’t lose any money in the exchange rates, the money itself is almost “money for the people.”
What is the potential for the cryptocurrency market? There is a wide scope for potential in almost every aspect that you look at it, you only need to look at the mintingcoins.com website to get a crash course in how people are raving about what it can do for the world. But here are some simple ideas to take on board:
Does this trend in cryptocurrency mean that we are moving from a paper-based payment system to an exclusively digital one? It certainly looks like it. Due to how people now purchase their items, which is mainly online, that we are naturally not using “paper money” as much. This is because the shopping habits that we are now embracing means that people are looking for quick and easy payments for items that we can click on in the comfort of our own home. The days of going shopping physically are slowly grinding to a halt. The shopping habits of UK people prior to Christmas has shown that people are preferring to buy their gifts online for the very simple reason of it being so much less hassle than the act of going out. We are becoming more sedentary as people, and this is reflected in our shopping. The line in the sand is definitely being drawn when it comes to the paper and digital worlds.
The cryptocurrency market is a big one for businesses to take part in. Even for budding entrepreneurs, or even those that have never thought about entering business before, if you know your way around the bitcoin market, you are, in essence, a translator for so many people and businesses that have no idea how it works. With over 100,000 merchants that have accepted bitcoin as a currency, this is merely a drop in the ocean when it comes to the amount of businesses in the world. So if you have a handle on cryptocurrency and have spent a long time working with it, it will be a lucrative market for you in your own native currency, not just bitcoin.
As a potential investment, it is becoming a more stable currency. Much like the gold mines from the old frontier days, it is a new and exciting market to get involved in, and one that will make a good ROI (return on investment). The slew of young companies that want to dip their toe into the new and intriguing currency means that you can take a big advantage in how valuable it is at the moment.
Is it making a transition into the real world? In some ways, it is. In Canada, there is an ATM machine in Vancouver that deals in bitcoin, and while many online stores have started to accept bitcoin as payment, it won’t be long until the bigger companies like Amazon are taking it as a form of payment. The bitcoin and cryptocurrency revolution is here, and as the tides are turning towards online payment methods, it is inevitable that we will see bitcoin and digital currency as commonly accepted as our own.