The introduction of cryptocurrency, right on the back of the 2008 global financial crisis, has triggered a seismic shift in the finance world. What started as an anonymous, decentralized alternative to fiat has since grown into a major medium of exchange among individuals and corporations.
Forbes estimates that the total capitalization of the global cryptocurrency market currently stands at over $2.5 trillion. Bitcoin alone contributes a significant share to this market cap with over $1.3 trillion. That’s a massive boost from the years before the pandemic where the global market cap hovered under $300 billion.
What this means is that cryptocurrency adoption is growing. And while it’s easy to monitor this trend along country lines, it’s equally important to consider how much emerging industries, such as those highlighted on the Immediate Luminary website, are contributing to this revolution.
Here are some of the top emerging industries where crypto is changing the way parties process financial transactions.
Virtual and Augmented Reality
VR and AR are two of the leading advancements in audiovisual and digital technology across the globe. With virtual reality, users are immersed in a simulated digital environment. Augmented reality, on the other hand, encrusts aspects of the digital space onto the real world.
In both sectors, crypto coins have been the top choice for transactions among users and companies offering VR/AR services. An important facet of cryptocurrency in the industry has been the introduction of non-fungible tokens (NFTs). Through NFTs, users can own virtual assets ranging from art to real property.
Many digital retailers are also exploring the possibility of initiating crypto-based point-of-sale transactions in augmented reality. As more people latch onto the VR/AR emerging technologies, the synergy it shares with cryptocurrencies is bound to foster improved blockchain adoption.
Online Gambling
No discussion of cryptocurrency adoption in emerging industries will be complete without considering the online gambling sector. Before now, stakeholders in the online gambling industry have always prioritized swift and secure banking methods. However, over time, the need for more anonymous and low-fee transactions led to an integration of crypto payment options.
Today, many online casinos allow deposits and withdrawals with popular cryptocurrency tokens like Bitcoin, Ethereum, Litecoin, and Tether. Sadly, many top regulated gambling sites in the USA do not accept crypto yet. But they are on offer in other countries like Mexico, Philippines, Russia and Nigeria.
One possible development to look out for is Metaverse gambling, which would see crypto tokens power the betting experience in virtual 3D worlds.
Tourism and Travel
Although much of the tourism industry still relies heavily on fiat and mainstream payment methods, a growing fraction of the sector is embracing blockchain technology.
It goes without saying that most travelers face the problem of currency conversion when they move to a different country. Unfortunately, this experience leaves many tourists susceptible to scams, exorbitant transaction fees, and unstable FX rates. However, with cryptocurrencies, payments are seamless in legal tender that transacting parties mutually accept, thereby dispensing with the need for conversion.
Similarly, crypto payments are quickly eliminating the need for agents and third-party intermediaries between tourism companies, hotels, and transport service providers.
FinTech
Even the FinTech industry is not left out in the cryptocurrency adoption frenzy. In 2020, online payments giant PayPal became one of the first mainstream fintech companies to allow cryptocurrency transactions on its platform. Fast forward to 2023, the company announced the launch of PayPal USD, its dollar-denominated crypto token.
The interesting thing about the fintech adoption of cryptocurrency is the ripple effect on a host of other sectors in the global economy.
For instance, companies in the crowdfunding, insurance, healthcare, AI, and robotics industries are undertaking a second-hand crypto integration due to the inclusion of blockchain payments in their fintech service providers.
E-Retail
Online retail needs trustworthy payment systems to thrive. However, despite the apparent growth of the industry, global transactions have always remained a problem, at least until the introduction of crypto.
Utilizing cryptocurrencies for payments has gone a long way to remove the problem of chargebacks that many e-retailers face. Unlike with traditional banking methods where customers can apply for a reversal after receiving the goods purchased, crypto payments are more permanent and reduce the incidences of retail scams.
In addition, e-retailers are integrating crypto payment options as a means to reach emerging markets where some international baking methods may not be available.
Charting a Course for the Future
Looking ahead, there’s still a long way to go for crypto. But for now, it is essential to count the benefits and build on them. With faster settlements, greater security and lower fees topping the list of reasons for crypto adoption, there’s no doubt that more industries will look to enjoy these perks soon, too.
