Let’s face it, the vast majority of people buying or using cryptocurrencies are doing so to speculate. But, ultimately, all that speculation is based on the idea that cryptocurrencies will eventually gain widespread adoption. However, we hear very little about how much crypto assets and blockchain technology are being adopted in mainstream commerce.
A few well-known companies have been accepting Bitcoin since as far back as 2012. These include WordPress, Microsoft and Virgin Galactic. But, the list of large companies accepting cryptocurrencies isn’t really growing. So which industries are really embracing cryptocurrencies?
One sector which has very eagerly embraced the crypto trend is the gambling and betting industry. Crypto gambling sites tend to accept any of the original six largest cryptocurrency coins, including Bitcoin, Ethereum, Litecoin, Dash, Monero and Zcash. Some of the coins are no longer ranked in the top six, but remain popular coins to accept because they are liquid and listed on nearly all the top exchanges.
The gambling industry has embraced cryptocurrencies because they know a lot of people with disposable income hold digital currencies. If a customer holds a digital currency the cost of transferring funds to a gambling account are very low, so it makes sense to offer gambling platforms entirely devoted to crypto.
The other industry that is for the most part embracing cryptocurrencies is the remittance and payment industry. Most of the smaller players in these industries are turning to blockchain technology to bring down costs and improve efficiency. But that’s not to say they have made a dent in the business models of the companies that dominate the industry. PayPal, Visa and Mastercard are still making record profits without the help of blockchain technology or cryptocurrencies.
Moving away from the gambling and payments industries, hundreds of start-ups are building new platforms aimed at disrupting almost every industry there is. However, none of these platforms has so far managed to make a noticeable dent in their respective sectors.
And, at this stage it’s not certain that they ever will. For young industries like artificial intelligence and the IoT (internet of things), there’s a very good chance that blockchain technology will become a significant part of the way they are structured. That’s because these industries don’t have entrenched business models blocking the path of blockchain technology. But even if the technology becomes a part of these industries, there is no guarantee that cryptocurrencies will be adopted. So far, we have seen little sign that customers like buying tokens to pay for services.
Several established industries could benefit from adopting a decentralised business model using blockchain technology. These include banking, insurance and healthcare. The problem is that these industries have legacy business models and technology. For blockchain technology to disrupt these business models, it will have to prove itself – something it has yet to do. And, again, even if blockchain tech begins to make inroads, it doesn’t mean digital currencies will.
If you google the term “which industries are embracing cryptocurrencies”, the results are far from convincing. Most of the articles that come up are PR pieces designed to promote the industry. There is very little evidence of many industries actually changing as a result of the impact cryptocurrencies. Of course, that doesn’t mean we won’t see meaningful adoption in the future ? but for now, it’s all promises of a future that has yet to materialise.
