Cryptocurrencies and blockchain are often referred to as revolutionary inventions, with claims that they will change the way the world works in much the same way that the internet did. With fingers in so many pies though, what is the future of cryptocurrencies?
Store of value and currency
Bitcoin has perhaps the most ambitious goals of all. It aims to replace the way currency works as we know it, to destroy central banks, and destroy the current economic and political system. By removing control from the central authorities that currently dominate the system such as central banks and government, Bitcoin aims to decentralise the system and return power back to the people. Much scepticism has followed these claims, but Bitcoiners maintain their dream of hyperbitcoinisation.
Gaming is another big blockchain industry that has sprouted up. Currently, games such as Fortnite use their own currency to buy add-ons such as skins for a player. Fortnite isn’t the first to make huge profits from in-game purchases – Fifa’s Ultimate Team has become a cash cow for EA Sports. Through blockchain technology, gaming companies hope to reduce the friction between the payment systems and the games in an attempt to stop black markets forming.
The gambling industry has often been one of the first to look at new and interesting technologies to help promote their businesses. Payments between gambling companies and banks have often been difficult with the amount of regulation required to legally act in this industry. By combining cryptocurrencies and gambling, these frictions could be made easier. Many blockchain gambling companies also guarantee fair betting on their website.
Similar to gambling, running your own marijuana store in the USA is fraught with difficulty due to the different state and federal regulations. This has meant that getting a bank to process your business transactions can be extremely difficult. However, cryptocurrency can provide a bridge between the two.
These are just a few options for cryptocurrencies and blockchain, but there are many more covering all different industry types. The likelihood is that many of the early companies are not going to survive this initial boom much like the dotcom bubble, but let us know in the comments below any ideas you have heard of that you think are great.