The world has witnessed a major transformation throughout the past few decades. This process has been mainly driven by global technological advancements, visible in every field of the worldwide economy. Yet, some of the sectors experienced more rapid and drastic changes due to their nature.
One of such industries is the financial sector. There is no other field more affected by banking around the globe. Today, almost every major commercial bank or another type of financial institution has a digital platform. Mobile banking has become increasingly popular as well amid the soaring number of people with access to the internet and required technology.
There is even a separate niche of the industry called fintech. It, quite simply, is a combination of two terms – financial and technology, outlining the vast adaption happening in the field round the clock. Yet, many people believe that fintech is a child of the 21st century. Nevertheless, the truth is that the niche was born along with the introduction of plastic cards in the mid 20th century.
The 1950s is the official period of time when technological evolution first appeared in the financial industry. The introduction of the first credit card back then was neither a major innovation nor a big success. The card was made of paper and had not much to offer. However, in the 1990s, both credit and debit cards became immensely popular in different parts of the world, gaining huge success within a short period of time.
From that point until now, fintech has been shaping itself as the general future of the financial industry. Everyone agrees that this sector will never be the same and is destined to only grow in this direction for decades to come.
Bitcoin – the real revolution
Despite so much novelty in finance, the year 2009 still proved to be one of the most important for the industry. This was the time when the first decentralized virtual currency, Bitcoin was launched. It caused lots of confusion among the enthusiasts, as well as within the general public. After all, we had never seen anything like this before. It is based on the blockchain technology which was even more confusing for many.
In simplest terms, decentralized cryptocurrencies, such as Bitcoin, are backed by blockchain. It is a major database connected to various ends of the network that are represented by computers. It is completely digital, just like the virtual currency itself, making it as innovative as it can get in 2020.
The main benefits of cryptos are safety, convenience, and anonymity. As the transactions happen completely online, there is no need for any side of the operation to visit a physical branch of some kind. The names can be hidden with only IDs available, making it quite anonymous. However, modern technology makes it possible to track partakers of a certain transaction if needed. Yet, regular users can not trace people just with their IDs.
These benefits are quite attractive to many industries, providing them with better services on the internet. However, there are quite a few concerns regarding its reliability, since the price tag for Bitcoin has been swinging up and down since its introduction. 2017 was the record year, marking the first time it passed the $10,000 bar and almost even hit $20,000. Nevertheless, the virtual currency has gotten down to just under $10,000 ever since. In this article. We have gathered some of the industries that use Bitcoin as their primary currency.
The gambling industry
Casinos are wildly profitable, known as the business for the rich only. That could have been true some decades ago in Las Vegas venues. However, the modern industry has changed itself to accommodate increased demand from lower budget players. Online gambling platforms are more popular than ever before, visited by millions each day.
Germany was one of the pioneers in this regard. Being a major country in Europe and one of the world’s largest economies, the nation easily managed to become a leader in online gambling businesses. However, almost every online casino in Deutschland has come across a range of problems due to overregulation in the country. This particularly regards financial transactions that are often banned or very restricted. As such, German operators found the solution in Bitcoin, which is not widely recognized in the national legislation in any way. Thus, operations with cryptos are absolutely legal while helping operators to avoid regulations in place.
E-commerce
A soaring number of people use Bitcoin on a daily basis. This means that some of them likely want to purchase some regular items through BTC. On the other hand, E-commerce has also become bigger than ever before with almost everything being sold online these days.
To meet the needs of modern customers, quite a few major E-commerce companies, as well as famous brands added Bitcoin payment options on their websites. The most significant one is Microsoft, which in 2014 announced that it would allow selling of games, branded software and other items in Bitcoin. The list is getting longer and companies such as Amazon, Dell and Nike are starting to appear on it.
The travel industry
International travel is more popular among holidaymakers around the world than ever before. With affordable flights and eased visa procedures, billions head abroad each year to spend their vacation traveling in different countries. Back in 2013, a popular US-based travel website Cheapair allowed payments with Bitcoin and is now being joined by a growing number of other influential companies, such as Expedia and Norwegian Air.