A cryptocurrency is a virtual currency or asset that is used in the digital world for payments. According to the March 2016 list of CoinMarketCap, 646 cryptocurrencies around the world are active and they are doing business under different brand names such as dash, ripple, ether, bitcoin, and BTCtalkcoin with a total market capitalisation of US$8,037,837,453. This, in other words, construes that there has been a growing popularity of cryptocurrencies around the world. Hence, it will not be inappropriate to presume that cryptocurrency is the future of all payments in the digital world.
The scope of the cryptocurrencies:
Digitisation is going gung ho around the world. This has actually accelerated the growth of this virtual currency and it is now the priority in every field of business. You will be pleasantly surprised to know that there are many business establishments in the world that don't have a single bricks and mortar outlet but close billions of dollar revenue per year. This further illustrates the scope of the cryptocurrencies in the years to come.
Some important applications of cryptocurrencies:
- Donation with accountability: Giving back to the society is now a part of the corporate social responsibility (CSR) of many organisations where accountability of reaching out to the underprivileged and the needy is the prime concern. While donating for the poor and the underprivileged in other modes, you cannot be sure whether the same is reaching the intended person/s or not. You can, however, be sure about the same if paid using cryptocurrencies that work on a unique P2P (peer-to-peer) platform.
- Paying for the everyday use: This is yet another mind-boggling application of the cryptocurrencies. Snakes and Lattes in Downtown Toronto, for instance, is now accepting cryptocurrencies after its owner joined the Bumblebee Exchange. To our understanding, such applications are going to increase manifold in the near future.
- Pay for travelling: You can use cryptocurrencies for travelling around the world with the sites like www.cheapair.com; many here are in the offing.
- Buying and selling of Artwork: Buying and selling of artwork on sites like Bitpremier.com are accepting cryptocurrencies.
- Education: Accredited universities like the University of Nicosia is accepting cryptocurrencies through Bitpay.
- Crowdfunding: You can contribute to one's success by donating to a project that accepts crypto crowdfunding.
Benefits of cryptocurrencies:
- You can send money anytime, anywhere, and to just anyone without a middleman and excessive fees.
- You can even pay to a person who doesn't have a bank account.
- With the blockchain, cryptocurrencies have brought about a paradigm shift in the financial industry.
Loopholes of cryptocurrencies:
Head and tell are just the two sides of a coin. Similarly, there are loopholes of cryptocurrencies too that can potentially pose a threat to your business. The best-known cryptocurrency Bitcoin is increasingly being linked to the security breach and thus, provoking criminal activities.
The possibilities with cryptocurrencies are endless. As we move forward, there will be more and more business and services that will come under the purview of the cryptocurrencies.
