Cryptocurrency, though not new, has been changing the operations of banks and vendors alike. While the value of these currencies is extremely volatile, the added layer of security that they bring with them makes them a very attractive option for consumers, investors, and companies. As cryptocurrencies become more common, businesses are finding that they have benefits that can open opportunities outside of normal banking practices.
As more industries begin availing themselves of the benefits of eCommerce and online-based businesses, markets are becoming more open to a variety of opportunities. When working with vendors, businesses can have extreme trouble finding secure payment portals, a problem that simply doesn’t exist with cryptocurrency. This security is also allowing industries that are ignored by banks to gain more independence and success.
Established businesses are finding that accepting cryptocurrency is allowing them to make themselves more accessible to more people. Unregulated industries on the other hand can establish a consistent, safe way for consumers to contact and pay for products. The Kratom industry is an excellent example, and as cryptocurrency becomes more common, its benefits are beginning to outweigh peoples’ skepticism.
Blockchain Technology is Leading the Way
A major factor in the expansion of cryptocurrency is the use of blockchain technology to secure payments and business transactions. Blockchain technology, the basis for cryptocurrency, allows information to be stored with a unique, separate block created every time there is a new transaction or a new piece of information added. The blocks are created and “chained” to the previous ones, creating a transparent, easily searched, and organized method of storing information.
As its use spreads, blockchain is paving the way for cryptocurrencies to become a more standard form of payment. This is changing not only the availability of various markets but the way that they are managed. With the global nature of business and the economy, cryptocurrencies are being used increasingly through financial institutions.
As businesses adapt to the ongoing evolution of finance, currency, and security, agile leadership is becoming far more important. With cryptocurrency values changing quickly, management must be able to innovate, pivot, and work quickly to respond. This flexibility and accessibility are what is bringing cryptocurrency into high-stakes markets.
Gambling
Online casinos were one of the early adopters of Bitcoin technology, and online gambling remains one of the largest industries where cryptocurrencies are accepted. This is only partly due to the accessibility of finances, however. Although Bitcoin casinos are illegal in the United States, the anonymous, unregulated, and international nature of cryptocurrency creates an increased comfort in completing transactions in high-stakes industries, including gambling.
With the security and speed of cryptocurrency transactions, online casinos have been opened to many who are interested in having their money unencumbered by the rise and fall of the Wall Street markets. Bitcoin casinos often have no transaction fees and are global, meaning that their hours are “never closed.”
Though the currency can be volatile, the preference to separate themselves from established financial institutions and trading is driving those who have invested found themselves in a place of financial security. As the draw of cryptocurrency continues, its effects are expanding well past gambling. Banks and traders are having to adjust to this new form of currency and its value to their clientele.
Banking
As incongruous as it sounds, one of the biggest impacts that cryptocurrency is having is on the banking sector. Even though part of the attraction of cryptocurrency is that it is unregulated, Goldman Sachs, one of the largest financial institutions in the US, has begun developing a Bitcoin trading desk. While they haven’t begun trading yet, they have been swayed by their clients.
Many banks already used blockchain technology as a way to track and secure international transactions. As the popularity of cryptocurrency has increased, some banks have begun to develop their own currencies. A major difference between this type of regulated cryptocurrency and currencies like Bitcoin is that it is being created as “stablecoin,” and is tied to the value of a nation’s real-world currency.
Independent Businesses
In addition to established markets, high-stakes markets can benefit greatly from the use of cryptocurrency. An excellent example of this is consumers and business owners in the Kratom industry. The industry is not federally regulated, and banks have consistently refused to allow businesses that provide products and services related to Kratom to operate through traditional methods. This not only makes it difficult to begin a business, but it also puts up artificial barriers between the business and the consumers.
The challenges to beginning an independent business are many, and one of the most stressful aspects is ensuring that both your and your customers’ information is being kept safe. The use of cryptocurrency is allowing niche businesses to become more accessible to their clientele, and expand the availability of their product. It is also affecting the way that management functions throughout the business.
In 2020 alone, just over 80,000 new companies were created, and the flexibility of agile leadership is helping them thrive. As businesses have to keep up with quickly changing markets, currencies, and demand, the use of cryptocurrency, with its natural volatility, requires these same attributes. Being able to change tactics, adjust market approach, and respond to changing currency values is a must-have when handling cryptocurrency in a business.
Restaurants
Though industries like food service have historically been hesitant to begin allowing this form of payment, cryptocurrency is a secure option for many, especially as retail and consumer sales become more and more digital. With independent companies often working mainly online, cryptocurrency can be an incredibly useful way to stay secure, and open up a new avenue in an already established market.
Internationally restaurants are jumping on the opportunity to allow more customers to pay with cryptocurrency. In France, over 15,000 restaurants are accepting cryptocurrency through the online ordering platform Just eat. Again, there are no fees related to the use of Bitcoin, making it an especially attractive option for this type of convenience based business.
The long reach of cryptocurrency is becoming increasingly attractive to a largely digital commerce environment. While larger financial institutions are only just beginning to consider it as a viable form of currency for trade, its effect on markets cannot be ignored. With flexibility and adaptability, cryptocurrency is allowing large companies to operate with security, and small companies to work within challenging systems.
