How is the Crypto Consumer Era Emerging?

Emerging crypto trends are driving more innovation for consumers in the space. As these trends become mainstream, we are likely to witness massive adoption from the consumers' end.

 

Key Takeaways

  • Consumer interest in the use of cryptocurrencies is growing.

  • Micropayments, global operations, open market, and consumer empowerment are some of the benefits that consumers get from digital assets.

  • Crypto trends to look at in 2022 include Web 3.0, DAOs, NFTs, and tax regulations.

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How is the Crypto Consumer Era Emerging?

The first whitepaper on “Bitcoin'' was penned and published by an unknown person named Satoshi Nakamoto in August 2008. Since its conception, Bitcoin jumpstarted the development of digital currencies.


Cryptocurrencies are digital assets that are secured by cryptography and it is technically impossible to replace or forge them. Cryptocurrencies gradually evolved as an alternative mode of payment for transactions.


The first official transaction of cryptocurrency was done on May 22, 2010, in Florida when a resident named Laszlo Hanyecz ordered two pizzas using bitcoins. He spent 10,000 bitcoins to buy two pizzas from a local outlet.


The Popularity Of Crypto In The Consumer Market

Today, the decentralized finance (DeFi) market has been swamped by more than 6,700 cryptocurrencies holding a global market cap of $2.57 trillion with Bitcoin as the majority holder. Consumer interest in the use of cryptocurrencies is growing. Businesses and financial institutions (FIs) are expressing more interest in the emerging digital payment system that is going to replace traditional banking and payment systems in no time.


The pandemic has further accelerated the growth and large-scale acceptance of cryptocurrencies as a global payment solution. Innovative startups who want to launch their projects are looking for a fertile ground where there is less regulation and low-interest rates on returns. Cryptocurrencies serve both purposes and unlike closed ecosystems like central banking and heavily-regulated fiat currencies, they are completely decentralized and transparent.


The decentralized finance market came up as a blessing paving the way to the widespread acceptance of cryptocurrencies as a part of the mainstream financial ecosystem. In 2020, PayPal announced its entry into the crypto market allowing its users to hold, pay, and buy cryptocurrencies from their accounts.


Many crypto companies are integrating with BaaS (banking-as-a-service) for improved consumer experience. While traditional banks operate within a limited space, BaaS allows FIs and businesses to interact with customers via APIs (application programming interfaces) through internet networks.

In 2021, Boeing conceived the blockchain project SkyGrid that will track air traffic control systems and allow seamless package delivery through drone communication. Tech giant Microsoft has partnered with EY and is leveraging Quorum and Ethereum blockchains to develop applications to automate royalty payments.


How Will Consumers Benefit From Cryptocurrencies?

How will consumers benefit from Crypto

  • Micropayments – Traditional electronic payment systems like credit or debit cards use certain intermediaries and this comes at a cost. The transaction cost for using credit cards is deducted from the funds of the payee. Cryptocurrency allows micropayments that are economically viable and eliminate the cost for intermediaries. Streamium is a trustless decentralized video-streaming platform where you can pay bitcoins on the basis of per-second or per minute for streaming videos, unlike YouTube or Twitch which deducts a share from the user’s revenue.

  • Global acceptance – You do not have to pay added fees for cryptocurrency exchanges. No matter wherever you are, the fees for trading are the same. All crypto wallets have a universal design that can be accessed from anywhere in the world to make payments.

  • Pseudonymity – Users are anonymous in the blockchain network. There is no need to disclose your true identity to a third party. It does not disclose your monthly payment statement, unlike credit cards.

  • 24/7 open markets – Unlike traditional stock markets, the crypto exchange markets are open 24 hours and can be accessed from anywhere in the world. The user just needs to have an internet connection. The DeFi market is open day and night, unlike its traditional counterpart which is open only for a few hours a day.

  • Empowers consumers – The benefit of using cryptocurrencies in a blockchain-based network is that it eliminates the limitations of centralized intermediaries and gives full authority to the customers.

  • Improved security – Cryptocurrency network is an alternative solution to perimeter-based security systems. Open blockchain ecosystems decentralize the security chain and use cryptography and ensure that any attempt to corrupt the security system is detectable by anyone in the network. It does not rely on any centralized point of control.


Crypto Trends To Look For In 2022

Crypto Trends in 2022

1) Web 3.0

Web3 are internet networks that operate on public blockchain networks. Unlike their traditional counterparts like Google or Facebook, they are decentralized and owners have full authority over their contents. They are permissionless and are not regulated by any central authority and facilitate virtual transactions. It has become highly popular in the decentralized finance market as more businesses want to leverage its benefits. Reddit currently wants to integrate Web3 which will allow its users to participate and own part of the community platform. DAOs (decentralized autonomous organizations) are a part of the Web3 concept that gives users voting rights and the power to make decisions.


2) DAOs

DAOs run on blockchain technology and operate on smart contracts. They are decentralized social platforms where the power is not centralized but is owned collectively by all the community members. Every member of the DAO can vote and take part in the decision-making process. DAOs are community-based platforms used to raise venture capital funds for projects. They allow investors to fund projects anonymously.


3) NFTs

NFTs or non-fungible tokens are the latest hype in the crypto world. Artists, gamers, musicians, crypto enthusiasts are earning millions through NFTs. NFTs are digital assets that are bought and sold through cryptocurrencies. They are one-of-a-kind assets that give exclusive ownership rights to the buyer. All NFT transactions are recorded in the blockchain public ledger system and cannot be reversed or duplicated. NFTs are used to buy collectibles, digital artwork, gaming cards, virtual avatars, GIFs, music, video highlights, etc.


4) Crypto taxation

With the growing popularity and mass acceptance of cryptocurrencies, many countries are planning to impose tax regulations on cryptocurrencies. Governments will also devise special tools to regulate and monitor crypto transactions.


More innovation, more opportunities

2021 has been a remarkable year for cryptocurrencies. The past few months have witnessed emerging trends in cryptocurrency and its adoption in businesses and consumer markets. Traditional financial gatekeepers are welcoming consumers to transact in cryptocurrencies. It is needless to say that innovation in the crypto space will continue bringing in more opportunities for consumers.