Cryptocurrencies have come a long way. In 2020, they have received a lot of coverage because of ongoing events around the world. Today, one of the most valuable cryptocurrency, Bitcoin is worth more than $15,000 and still climbing. Not only is this great, but it also creates real opportunities for businesses to make money in these markets. Because of the exposure cryptocurrencies have seen over the past two years, innovations and certain trends are starting to crop up. Here are some of the most influential B2B crypto trends.
Going totally cashless
The financial market has seen a significant 60% drop in cash related transactions. One of the reasons why cryptocurrencies have been in the limelight this year is due to one of the biggest worldwide campaigns of going cashless. David Hoaas, Centenary College economics professor explains:
“When we think of a cashless society, we’re basically thinking of all financial transactions taking place electronically. The most obvious example that people would think of is debit cards and credit cards but that would also go as far as the new form of currency, which is bitcoin.”
Because of the Coronavirus pandemic, people could easily infect each other when exchanging cash. Therefore, businesses have gone cashless by and large, providing their clients with several ways to pay without using cash. By leveraging going cashless, cryptocurrency popularity increases. And this goes the same with innovation and safety for everyone, more so during a pandemic.
Crypto is not just for tech companies
As people and businesses continue accepting cryptocurrency, we can see an underlying trend coming to life. Businesses are buying up a lot of cryptos. A few years back, cryptocurrencies were seen as tools for the tech elite and geeky companies. In 2020 however, we have seen a major shift from that kind of thinking. Institutions these days are some of the biggest buyers of cryptocurrencies. That’s simply because they have discovered just how useful it can be for their business and also help in boosting valuations. For instance, a company can buy plenty of Bitcoin, and instead of using them, keep them on their books. Since the digital currency is an asset, it significantly raises their assets, making them look much better on paper.
Decentralized finance (DeFi)
DeFi is one of the hottest trends in both finance and cryptocurrency. The rise of distributed ledger technology has been great for the industry, which has seen incredible gains from 2019. There has been so much activity around decentralized finance. This has resulted in a less than two-year-old industry to have a valuation of more than 4bilion. Financial institutions that have invested in DeFi are presenting other businesses with new ways of getting the job done. For instance, some institutions offer businesses hard hit by the coronavirus pandemic with crypto loans with low-interest rates. Doing this provides everyone with an opportunity to win. The institution gets interested in the loan while the loan helps keep the business alive and going.
There have been discussions about big businesses leveraging the public Ethereum blockchain over the last couple of months. Several businesses, such as Quorum and Baseline Protocol, have been paving the way for enterprise-level implementation. When big businesses start accepting crypto, then the road to mass adoption and major implementation is right around the corner. As these companies continue investing in blockchain technology, soon, everything will be a reality. When bigger corporations start implementing these technologies, smaller ones will also follow suit, opening the world to new possibilities.
Supply chain management
For a long time, tracking a product’s supply chain has been a headache for many businesses. The industry has not seen much innovation until distributed ledger technology took over. Shipping businesses around the world have come to terms with how important this technology is in making things so much easier. Since most companies aren’t able to fully track their products, it exposes them to quality concerns. When blockchain technology is used and properly implemented, the supply chain costs for businesses are significantly reduced.
That’s simply because data sharing eliminates holes and blind spots in the supply chain. This makes it possible for products to be delivered on time. It significantly eliminates delays and misinformation, which can improve productivity across the board.