In a world increasingly driven by digital innovation, the future of payments lies in the revolutionary realm of cryptocurrencies. These decentralized digital currencies, powered by blockchain technology, are reshaping traditional financial environments. The question arises: is cryptocurrency the future of money?
The first documented purchase using cryptocurrency was in 2010, when Laszlo Hanyecz bought takeaway pizzas from a fellow crypto supporter. We came a long way until today, and it just keeps improving. The changing world of digital money and online money exchanges has a big power to change how we think about money and banks, and knowing how to switch crypto to fiat becomes super important. It helps make it easier to send money across countries and lets more people join in with money stuff.
Since that first documented transaction in 2010, more and more folks have figured out how to pay with bitcoin online. This makes digital money, like bitcoin, more popular and gets it used more in the money world online. In fact, by now more than 220 million people are using cryptocurrency and they are paying with it for everything, from theater tickets to coffee or even cars.
No wonder, the future of payments is intrinsically tied to the rise of digital currencies, representing a paradigm shift in how we perceive and conduct transactions.
In this article we will take a look at:
What is cryptocurrency?
Top cryptocurrencies you should know about
The benefits of integrating cryptocurrency payments solutions
Cryptocurrency use across various fields: from health sector to real estate
- Cryptocurrency trends to watch out in 2024 that are shaping the future of payments
- How can crypto benefit you?
The Future of Payments. A Cryptocurrency Introduction
What Is a Cryptocurrency?
Cryptocurrency is a form of virtual currency that operates on a technology called blockchain. Unlike traditional currencies, cryptocurrencies are not governed by a central authority, providing users with increased autonomy over their financial transactions.
However, it’s essential to note that while cryptocurrencies offer a decentralized nature, they are subject to various regulatory frameworks imposed by governments and financial authorities in different jurisdictions.
Top Cryptocurrencies You Should Know About
By now, you must have heard about bitcoin, the world’s first cryptocurrency. But bitcoin is not the only one – today there are over 10 000 cryptocurrencies in circulation! Below are the most popular crypto currencies you should know about, based on the market capitalization (as of Nov 2023):
- Bitcoin that has a market capitalization of $730 billion
- Ethereum that has a market capitalization of $246 billion
- USDT that has a market capitalization of $87 billion
- BNB that has a market capitalization of $38 billion
- XRP that has a market capitalization of $35 billion
- SOLANA that has a market capitalization of $28 billion
It’s important to note that one of the cryptocurrencies that we included in the list above is USDT, which is a Stablecoin. What is a stablecoin you ask?
Stablecoins are cryptocurrencies designed to have a stable value, usually pegged to a specific asset like the US dollar or gold. This pegging mechanism aims to minimize price volatility, making stablecoins less prone to drastic value changes compared to Bitcoin or other traditional cryptocurrencies.
Top 3 Benefits of Integrating Cryptocurrency Payment Solutions
The integration of cryptocurrency payment solutions brings a very large number of benefits, from enhanced security to . Here is a list of the most notable ones for your business.
#1. Enhanced security offered by blockchain technology
Cryptocurrencies utilize cryptographic techniques to secure transactions, reducing the risk of fraud and unauthorized access.
Cryptographic techniques are like secret codes that help keep information safe and secure. They use special math tricks to scramble data so that only the intended person can understand it.
Imagine you have a secret message that you want to send to your friend. Instead of sending it in plain language, you use a special code. This code makes the message look like a bunch of random letters and numbers. Your friend knows the secret trick to turn this jumble of characters back into the original message. This way, even if someone else intercepts the message, they can’t understand it because they don’t have the secret code.
In the digital world, cryptographic techniques work similarly. They help protect things like your passwords, bank information, or messages you send online. They use complex math to scramble this information, making it extremely hard for unauthorized people to read or manipulate it without the right code or key to decode it.
#2. Speed and efficiency of cryptography as compared to traditional payment methods
Cryptocurrency transactions occur in real-time, eliminating the delays associated with traditional banking systems, especially in cross-border transactions.
For example, using Cryptody you can see all transactions in your crypto wallet within seconds, and you can settle them to FIAT anywhere from 8 to 24 hours, depending on the size of transaction. That might take you up to 5 working days for international transactions.
#3. Lower transaction costs
The decentralized nature of cryptocurrencies (also known as not regulated by banks but by their programming codes) also translates into lower transaction costs, as they bypass intermediaries like banks. This not only makes transactions more affordable for users but also opens up financial inclusion for those previously excluded from traditional methods.
For example, at Cryptody we take up to 0.5-1% transaction fee which compares with the standard fee of ca 2.9% plus 30¢ per transaction for most credit card processors.
Unlocking Benefits with Cryptody - Your Cryptocurrency Payment Gateway
At Cryptody, a leading cryptocurrency payment gateway, we have a strong belief that the future of payments is tied to blockchain technology. With our user-friendly interface and strong security features, we simplify the process of integrating cryptocurrency payments for businesses and one of our main goals is to educate businesses on how to set up a payment gateway.
Cryptody’s platform ensures the compatibility of various cryptocurrencies, providing you, as a user, with the flexibility to choose your preferred digital currency for transactions. Our real-time processing capabilities enhance the overall efficiency of payment systems, making it an ideal solution for businesses looking to stay ahead in the dynamic world of digital finance.
How Cryptody Can Help Businesses to Stay Ahead?
Businesses are realizing the many benefits of integrating cryptocurrency payment solutions such as heightened security, reduced transaction costs, and expanded market reach.
As a business owner, embracing the best crypto payment gateway like Cryptody ensures that you stay ahead in the competitive market, providing your customers with a cutting-edge payment experience.
Make sure your business stands out by choosing to integrate Cryptody Into your business already today!
Cryptocurrency's Impact on Future Payment Trends in Various Industries: from Healthcare to Real Estate
The influence of cryptocurrencies isn’t just limited to banks; it’s changing how we pay in different areas. A study done by CoinLedger concluded that retail and e-commerce businesses such as Adidas, H&M, Etsy, etc. make up the majority of businesses accepting crypto payments. Other industries are catching up as well – these include the food & dining sector with companies like Chipotle, Starbucks, Hard Rock Café, Uber Eats, Burger Kings; luxury retail with high fashion brands like Ralph Luaren, Gucci, Hublot; and many more.
And that’s not surprising. For instance, when you use cryptocurrency to buy a house, it’s quicker and more straightforward because of smart contracts, which clearly outline who owns the property.
In the healthcare world, they’re exploring ways to use a special technology called blockchain to keep your medical information safe and private.
And in creative fields like art and music, people are using something called NFTs (unique Non-Fungible Tokens that cannot be copied or replicated ) to own unique digital creations that are encrypted with blockchain technology and hence keep a live record of ownership in the event of sale. For example, “Merge”, created by digital artist Pak, is considered to be one of the most expensive NFTs sold for US$91.8 million on NFT platform Nifty Gateway in December 2021. Or ‘The First 5000 days’ NFT, a collage of 5000 pieces put together became the fourth-most-expensive piece ever sold at the Christie’s auction by a living artist.
These examples show that cryptocurrencies aren’t only about money; they’re reshaping how payments work across different aspects of our lives.
Cryptocurrency Trends to Watch Out in 2024 That Are Shaping the Future of Payments
Cryptocurrency is changing the future of digital payments and mobile payments, i.e. how we pay and do business, but it’s still relatively new. Blockchain technology, the backbone of crypto, is a secure and decentralized system gaining popularity in many industries.
One big change is Decentralized Finance (DeFi), which leverages blockchain to offer financial services independently of traditional intermediaries like banks. Generally speaking, this means that thanks to DeFi you can lend, borrow and trade directly with each other (via peer-to-peer exchange) without any engagement of banks, exchanges and insurers, and fees associated with it.
Total Value Locked in DeFi protocols keeps increasing steadily (by October 2023 it’s been over $100 billion), which proves a growing confidence in the technology overall.
Another hot trend for 2024 worth mentioning is central bank digital currencies or CBDCs. They are issued by the central bank and are linked to the issuing country’s official currency – and hence provide a digital version of fiat money. CBDCs have the potential to completely change the financial landscape and how we use money.
For example, the European Central Bank is already exploring the concept of a digital euro. According to the ECB, “A digital euro could be used for all your digital payments, just as cash can for physical payments. It would offer another way to pay in stores or online shops, or to send money to friends and family.”
Cryptody is a part of this changing world. It keeps up with new ideas and technologies in cryptocurrencies. We don’t just work with existing technologies, instead – we strive to stay up to date with the new ones coming up. This helps our users to have the newest and safest ways to buy and sell things online.
How Cryptocurrency Helps More People with Money
Cryptocurrency isn’t just for crypto enthusiasts or tech-savvy people anymore. As mentioned in the beginning, today it is being used by more than 220 million people worldwide.
This brings an optimistic future of payments especially for those who can’t use regular banks. In some places, banks are hard to get to or not available at all. But with cryptocurrency, these people can still buy, sell, and save money without needing a traditional bank. This helps more folks join in financial activities, even if they couldn’t before.
Imagine someone in a faraway village. They might not have a bank nearby, but they could use cryptocurrency on their phone to buy things or even start a small business. It’s like having a mini-bank in your pocket which is accessible anytime and anywhere.
Cryptocurrency also works fast, so if someone needs to send money to their family in another country, it can happen within minutes instead of days, like with regular banks. In fact, it is as fast as sending an email!
If you or your business is not a part of crypto evolution yet, hurry up and do so by signing up for Cryptody already today!
