There is a real concern on Wall Street that the cryptocurrency boom might actually start to take over from traditional currencies, and that is starting to change the way banks are thinking.
When Bitcoin and its brethren appeared on the market, it was met with huge skepticism, and you can understand why. What is to stop people from deciding to start their own currency from their bedroom and call it something random like carrotcoin?
While the industry has been through many changes, it certainly looks like cryptocurrencies are here to stay, and with Facebook looking to launch their own, known as Libra, we take a look at which industries are likely to benefit the most from this boom in cryptocurrency.
The banking sector
This may sound strange, but the banking sector already has the people, resources and influence to really benefit from cryptocurrency’s rise.
There is change underway already as, until recently, banks had opted to stay well away from cryptocurrencies such as Bitcoin, but that is no longer the case. The Wall Street bank Goldman Sachs is pioneering the first Bitcoin trading desk of any major bank, according to New York Times, and it could open up the market to more cryptocurrencies to join in.
They do not intend to start trading the currency, but they are being swayed by the number of their clients that want to hold Bitcoin as a commodity similar to gold.
Other banks will not be in a rush to join Goldman Sachs in this venture, with the chief executive of JPMorgan Chase, Jamie Dimon, famously calling it a fraud. There are additional risks that banks need to be aware of, but Rana Yared, one of those tasked with overseeing its implementation, did admit they are being cautious.
“It is not a new risk that we don’t understand”, Ms. Yared said. “It is just a heightened risk that we need to be extra aware of here”.
If they do things right, then other banks may not stay away too long.
Online casinos and sportsbooks
Online casinos have thrived using Bitcoin with a number of them specializing in Bitcoin and cryptocurrencies only. The reason, according to CultBizzTech, why people like using Bitcoin is that it is sheltered from the possible downturns of Wall Street markets such as the one seen in 2008.
Online casinos already accept a huge array of payment methods, and many across the world such as those recommended by Canada Casinos offer customers bonuses and free spins when they join, but they may stand to benefit further as Bitcoin, Libra and other cryptos thrive. The added security and transaction speeds of cryptocurrencies will appeal to clients and will likely boost business.
Food and restaurant industry
The final sector to touch upon is the food industry. There are a number of restaurants that either accept Bitcoin or that are looking into it – coming full circle considering the first acceptance of Bitcoin for a transaction was actually a pizza delivery from Papa John’s. However, there is a degree of hesitation due to the massive fluctuations seen in the value of cryptos, with many falling and rising by hundreds of dollars depending on the world markets.
However, it has been reported that KFC Canada did recently accept Bitcoin as a payment method for a meal, and this could open up the possibilities for expanded use of the currency.
It will be interesting to see what happens to the cryptocurrency markets over the coming years, especially as big banks start lending it credibility, but it does, for now, appear as though it is here to stay.