Crypto in the Mainstream Consumer Market
Today, the decentralized finance (DeFi) market has undergone a massive change where small and big business houses are using digital finance or cryptocurrencies to streamline their day-to-day services.
The crypto market is expanding exponentially as startups and crypto influencers launch new projects and technologies and take the decentralized finance world by storm. The lack of regulatory measures and global adoption are influencing startups and innovators to embrace the new currency.
Crypto in the mainstream consumer market
The global asset valuation of cryptocurrencies surpassed $2 trillion at the end of September 2021. Countries like Japan, the UK, US, and Switzerland are allowing their citizens to complete business transactions using cryptocurrencies. The pandemic has also accelerated the growth and adoption of cryptocurrencies. Consumers are looking for a less-regulated market with low-interest rates.
In recent years, we’ve witnessed the emergence of projects that utilize blockchain networks in new ways. The NFT market is booming. Boeing is developing a blockchain-based system called SkyGrid to control traffic. The innovative app aims to assist in cheap, fast package delivery through the use of drone communications.
IBM is introducing the Health Pass application, a digital app for COVID-19 testing for individuals and corporations. Microsoft is not far behind. The company is atomizing royalty payments through blockchain-based apps. Many gaming companies like Ubisoft and Xbox have already used their services.
Additionally, Paypal now allows its users to hold cryptocurrencies for transactions. Visa’s latest project “Visa B2B Connect” is leveraging blockchain for cross-border payments.
Relevance of crypto in the consumer market
Security – Crypto payments are secure. Consumers are gradually shifting to cryptocurrencies for online payments. Due to cybersecurity issues, crypto P2P payments have become widely popular. Many e-commerce platforms and businesses are now accepting cryptocurrencies as payment options. Moreover, it does not disclose the personal information or identity of the consumers to third parties.
Ownership – In a crypto community, token holders get ownership of the asset and can take part in the governance protocol of the ecosystem. They can take part in votes, make important decisions, and earn rewards against their holdings.
24/7 active markets – One of the major attractions of the crypto market exchanges is they are 24/7, contrary to traditional stock exchanges which are open for a few hours. The DeFi market is online day and night, so anyone with an internet connection can access the market, anywhere in the world.. The more the traders, the greater the profits.
Global accessibility – Cryptocurrency has broken geographical barriers and has created a global financial ecosystem that is accessible to all. For example, crypto wallets are built on a universal design accessible to everyone. Users can operate those wallets from anywhere in the world and carry out transactions. The global acceptance of cryptocurrencies has also encouraged businesses to use cryptocurrencies as online payment solutions.
Low fees – One of the advantages for crypto trading over traditional payment solutions is the low fees. People making online payments through credit cards incur hefty fees. Digital currencies like crypto coins are safe and charge low fees from their customers.
Decentralization – Cryptocurrencies are not regulated by any centralized authorities. So, they do not fall under the jurisdiction of any state or specific country.
Mass adoption – With the growing popularity of cryptocurrencies and the emergence of crypto debit cards, some consumers can now carry on their day-to-day transactions with debit cards by using Bitcoin, Ethereum, Ripple, and other altcoins. The transactions can convert digital payments into fiat currencies like USD or EUR. Customers can use their crypto debit cards for ATM withdrawals and online purchases. The transaction charges are less compared to traditional cards.
Latest trends in the crypto consumer era
Web3 is a decentralized network that runs on a public blockchain and helps with crypto transactions. Unlike other networks, like Facebook and Google, Web3 is a permissionless network that does not hold any personal data of the user. None of your payments, transactions, or data is accessed by any third party or intermediary. Anyone can access the network. No one can block the services. DAOs (Decentralized Autonomous Organizations) and NFTs (non-fungible tokens) will be crucial aspects of the Web3 decentralized network. Many companies including Reddit are gearing up to develop platforms for launching Web3-based services in the virtual ecosystem.
DAOs for social platforms
DAOs (decentralized autonomous organizations) are decentralized communities that operate on smart contracts. A “social DAO” is a fully autonomous community platform not controlled by any central authority but governed and audited by the community. DAOs run on a fair voting system with pre-written rules outlined by the smart contracts. Token holders can take part in the voting process and decide how to fund the next big NFT project.
Online gaming has now grown into a global phenomenon and many players and gaming companies are now using cryptocurrency for buying and selling virtual assets. Cryptocurrency is a secure medium to make purchases in online games. Smart contracts allow instant transactions from anywhere in the world. Purchasers do not have to reveal their identity. Cryptocurrencies allow peer-to-peer transactions and eliminate exchange fees.
Online marketplaces like OpenSea or Nifty Gateway are NFT platforms to buy and sell digital artworks. NFTs give ownership or copyright to these artworks. Since NFTs are blockchain-based, these records are stored in ledgers that cannot be replaced or forged. Most of these NFT marketplaces are community-driven and excellent platforms to crowdsource funds for launching new projects. They allow people with similar interests to socialize and take part in auctions.
Companies worldwide are now using cryptocurrencies for their businesses and operational transactions. Blockchain is an emerging technology and more companies are realizing its huge potential. Crypto has emerged as a new asset class and will be accepted globally as a secure payment solution that will benefit consumers, investors, and businesses.