What is the real-life future of cryptocurrency?

Has any topic taken up more column inches of media coverage and led to so many diverse opinions as cryptocurrency? As its value lurches from zero to hero and back again practically every week, there are those who say its sheer volatility means its days are numbered, while others believe it represents the future of banking and finance.

None of us has a crystal ball, but it is fair to assume that the real future of Bitcoin and other cryptocurrencies lies somewhere in between these two extremes. Here, we take a look at some real-life applications of cryptocurrency beyond the hype of those pursuing high-risk trading strategies.

A genuine online currency

Is it a currency or a commodity? The fact that the jury is still out deciding how Bitcoin should even be classified shows just how different this whole phenomenon is to anything that has come before. But while the lawmakers and regulators argue it out, there are those who are quietly but effectively using Bitcoin for online transactions. The booming online casino market is a perfect example. Casinos like slots.lv accept Bitcoin, and punters find the flexibility, security and anonymity of the cryptocurrency ideal for a night on the virtual slot machines. You can see a more detailed Slots.lv review, along with a summary of other casinos that are starting to accept Bitcoin as a payment method at Online Casino BlueBook.

Meanwhile, the general retail market is also jumping on the Bitcoin bandwagon. Shopify has now provided the option for any of its 500,000 online sellers to accept Bitcoin, while you can also use your virtual currency to buy from big names including Microsoft and Expedia.

The impact on banks

This demonstrates the surreal nature of cryptocurrency. On the one hand, we have economists and politicians debating what it is and whether it is sustainable, while on the other, there are thousands just getting on with using it every day. Whichever way you look at it, cryptocurrency is something the banks can no longer ignore.

Perhaps it is time for the banking sector to sit up and start to acknowledge the undeniable benefits that blockchain technology can and will bring to global finance. Still feeling a little cynical? Consider the following:

Truly global – we live in a global society, and international transactions are still expensive and time-consuming. Even a simple bank transfer from, let’s say, the US to the UK can take days and costs both parties a fortune in fees. Blockchain has no concept of international borders. Transactions are instant and cost effective.

Secure – cryptocurrencies are not just designed for the online age, they are part of its very fabric. As such, security and transparency are in a different league to traditional online payment mechanisms.

More efficient – current banking is still very cumbersome and paper-dependent. Blockchain streamlines the processes, by joining all the parties in a transaction digitally. The result? Seamless, instant transfers, with complete transparency and perfect record-keeping.

There are still plenty of question marks over Bitcoin, and its volatility will continue to cause controversy in the investment markets. But despite these, the applications of Bitcoin that are already being exploited and the advantages that the underlying technology brings should not be overlooked.