Cryptocurrencies have actively made headlines in recent months due to the rise in popularity. As more people adopt new ways of transferring value, markets of all types are being disrupted. The adoption of blockchain technology and the innovative products built on top of it, namely digital assets or cryptocurrencies and similar value-exchange mechanisms, are gearing towards dramatically changing how we transact in our day-to-day life. Disrupting the entire financial industry is already a major effect of the rise of cryptocurrencies, but it is not the only industry that this phenomenon will affect.
A multitude of industries are being rewritten and new ones are being created every day. Cryptocurrencies are having a direct and indirect impact on people, organizations and countries all over the world. Take for instance Ivan Liljeqvist, a Software Developer from Stockholm, Sweden and founder of Ivan on Tech, a YouTube channel that informs users about cryptocurrencies and tries to breach the gap between the expert and the average user. Ivan produces videos explaining to the average user the advantages and disadvantages of certain cryptocurrencies and their underlying technology. Ivan’s channel grew from 4,000 to over 100,000 subscribers in just a few months, a major increase (+2,500%) and an example of how the ripple effect of cryptocurrencies benefit not only those who hold the digital asset, but content creators as well. As a technology content creator focused on blockchain, cryptocurrencies and similar technologies, he is able to help those who want to take a part in the cryptocurrency phenomenon but simply do not know where to start. Ivan now travels all around the world speaking at conferences about the importance of understanding these disruptive technologies. Because of his channel’s popularity, he is now exploring new verticals and coming up with new ways to help those wanting to understand all of the recent buzz.
Media coverage is one of the reasons why cryptocurrencies have reached their popularity. When Bitcoin was created in 2008, only those close to the project were able to participate in the network. Most people were not aware of its existence until it received media attention and information about this disruptive technology began to emerge. As the average user tuned in to learn all about Bitcoin from their preferred media outlet, we began to see an exponential increase in the value of Bitcoin, as people eager to be a part of this new technology began to join the network. New exchanges were created for people to trade their local currency to cryptocurrencies, and information began to spread on social media and the press. Today, the spotlight is on the incredible increase in the value of Bitcoin and related cryptocurrencies. Information both vilifying and praising these technologies make headlines around the world, and skeptics and lovers share their thoughts on social networks. Content creators need to be careful when releasing information about cryptocurrencies, as we have seen that sometimes these can have major effects on an already volatile market. Rightfully, information is crucial when it comes to breaching the gap between the expert and the average user trying to be a part of this global phenomenon.
Breaching the gap and helping people join this phenomenon is just the start. If cryptocurrencies are here to stay, we need to make sure everyone is able to participate. By having a healthy community around various cryptocurrencies, we can ensure that the future of these technologies is in the hands of the majority of the global population. Once everyone in the world is able to take advantage of these breakthroughs, we will see new businesses flourish and new opportunities arise–and we are already seeing that occur. Decentralized networks like the Bitcoin network can be used anywhere in the world to transact with each other, and decentralized applications can be built on top of Ethereum or EOS to allow for more scalable and independent products. It should not be a surprise that these technologies will have a major economic impact in developing countries, as they become the alternative to an otherwise polluted, expensive and inefficient system.
In Zimbabwe for instance, Bitcoin is trading at above average prices, as the demand for the digital currency is ever increasing. It is also the case that decentralization is not always required. Ripple Labs for example, a company who claims to have the fastest and most scalable digital asset (XRP) has been under fire recently due to concerns that they control most of their digital asset. Although controversial, companies like Ripple are also set to change the world dramatically, as they allow for faster settlement across ledgers and connect financial institutions all over the world. This will mean that countries that would otherwise go through various expensive routes to send money across international borders will be able to trade at a lower cost and more efficiently. There is no “one size fits all” in cryptocurrencies, as the use cases of some cryptocurrencies benefit some users more than others, but the options are there for those who want to take advantage of them.
Cryptocurrencies are not only changing how we transact, but also how we store value for the long-term and conduct business. In the traditional sense, for example, people would have a bank account to store some of their money, and companies would offer cards for medical expenses and other types of accounts to save for retirement. This can all change as people move their assets to digital formats, and store them in distinct wallets distributed across multiple places. These changes are already seen in governments across the globe as countries explore ways to digitize their own currency. You may soon find that your parking meter no longer accepts physical coins, but digital tokens that you can purchase online. Small businesses may also choose to transact with cryptocurrencies, as they will be able to do this cheaply and fast. It is not far-fetched that we could see companies as large as Uber be replaced by decentralized autonomous organizations that run on smart contracts. Smart contracts can be programmed to perform many of the tasks traditional organizations perform, but more efficiently and open, and they use digital tokens to transact. These changes are not only limited to a specific type of organization or even a country, they can resonate all around the world, from a small tourism company giving tours of the Amazon River to the tech startup in Silicon Valley or Singapore. These changes to how traditional organizations and businesses operate is yet another of the ripple effects of cryptocurrencies.
Disruptive technologies such as blockchain and cryptocurrencies are able to rewrite our day-to-day life. The effect of cryptocurrencies is seen not only in the financial industry, but in various markets all across the world. Cryptocurrencies and related technologies can have direct and indirect effects on content creators, small companies in the middle of the Amazon rainforest and entire countries. It is this wide spectrum of impact what powers new businesses and opportunities, the seemingly unlimited potential of how markets are being rewritten by these technologies. As more people realize their potential, and as new users are able to participate in the various networks, the ripple effect of cryptocurrencies will reach every corner of the world.