Cryptocurrency is the market force that investors just cannot give up. Yahoo Finance figures show that crypto now has a total market cap of over $2 trillion, defeating claims from detractors that it was to be nothing more than a bubble. Exchange rates are improving, and investors are able to spend less to extract value from their portfolios. One question remains, however – what good are digital coins when it comes to material goods? As it happens, a lot has been done to give crypto a real-world impact.
Cryptocurrency has already had a big impact in real estate, if not the actual cash exchange itself. As Investopedia outlines, blockchain has enabled more rapid and assured sales of properties between the individual players in any property chain. However, real-world purchases are now being made. There are increasing numbers of crypto friendly mortgage lenders and one California-based real estate agency made news headlines by accepting rent via Bitcoin earlier in 2021.
The Digital Economy
Less physically imposing than a house, but just as relevant, is the digital economy. Various app stores now accept Bitcoin, and apps do, too, and that’s influencing companies higher up the chain. Apple and Microsoft are now accepting cryptocurrency for some services, and that may well include physical devices. Hardware for cryptocurrency would represent an everyday transaction in consumer goods that could prove exciting for crypto users.
The fact of the matter is that cryptocurrencies are based on hard, material matters. Bitcoin is created from the solving of complex mathematical algorithms – that takes energy, which isn’t simply created out of thin air. Other coins, like Cupcake Coin, are based on a physical basis – cakes. While this seems like a gimmick, it points to how cryptocurrencies operate and how they need to be taken more seriously than as simply a digital means. They have real tethering to real-world commodities and can be a powerful way to exchange goods and services outside of the normal rules and regulations of monetary/currency regulation.
This is why so much work is being done to try and restrict cryptocurrencies. They are, after all, an alternative to the systems that many countries base their economic policy on. Don’t underestimate them – you could soon be making your regular purchases with these digital tools.