Since 2009, when the first cryptocurrency, Bitcoin, was created, cryptocurrencies have grown exponentially in popularity. Today, there are over 4000 different cryptocurrencies, which attract billions of dollars on an international scale.
For many consumers, cryptocurrencies are primarily seen as an investment option. However, as we shall explore – the everyday use case of crypto goes far beyond this and, as crypto becomes more widely accessible, we expect this trend to truly change the financial landscape we see today.
Integration into payment systems
In just the last few months, we have witnessed a shift in the number of institutions who now accept payment via cryptocurrency – as testament to the consumer appetite to adopt this new form of currency. Indeed, just last month, Uber announced it will soon accept payment in Bitcoin, joining the ranks of Tesla, Microsoft and even KFC Canada.
Paying via crypto isn’t simply a gimmick and a handy option to prevent consumers from having to carry cash. The benefits of this currency go far beyond this.
Benefits of the Blockchain
Blockchain technology underpins all forms of cryptocurrency. This technology, unlike legacy financial systems (which, let’s remember, were built before the internet!) is totally decentralised. This means there is no middle-man, removing third party costs and vastly reducing the risk of fraud. In addition, transactions on the blockchain are irreversible and completely transparent – each transaction is recorded in a clear chain. This is worlds away from traditional systems, which are frequently criticised for their opacity and lack of security.
~Novel Serialisation: Heavens Fire~
In addition, blockchain technology vastly reduces the time and costs associated with moving money. As businesses, and anyone who has attempted to send large sums of money cross-border, knows, money transfers can sometimes take days and incur a startling number of extra costs. Opting to send this money in cryptocurrency can reduce transfer time to just seconds and reduce fees from hundreds of pounds to just a fraction of a penny.
Reaching the masses
The final point which is essential to recognise, which is as important as cryptocurrencies’ ability to save time and cost and to reduce fraud, is the fact that cryptocurrencies can truly be a way to democratise finance.
Shockingly, 30% of the global adult population do not have a bank account. Clearly, the existing financial system is not working for them. However, to spend or receive cryptocurrency – consumers do not need a bank account! All they need is an internet connection.
This is surely the most powerful demonstration that the new face of finance is not one where nearly a third of the population is locked out, but is one where everyone across the globe has access to a financial system which works for them.
Our belief at MoonPay is that we’re on the precipice of a new financial age, where crypto will continue to transform the financial system as we know. Cryptocurrencies have the potential to create a completely new native digital asset class, available to the everyday consumer. Are you ready for the new world?
By Ivan Soto-Wright, Founder & CEO, MoonPay
