Industry News Cryptocurrencies could start a Retail Use Boom in 2022

Cryptocurrencies could start a Retail Use Boom in 2022

May 3, 2022

The famous bitcoin white paper that was penned by Satoshi Nakamoto came out in 2008, nearly 15 years ago. Since then, the landscape of digital currencies not only came into being but evolved drastically across the board, offering all manner of technological and even sociological innovations when it comes to economy and finance in general. Yet, with all of these successes, not one actual platform emerged onto the scene that offers a significant level of innovation in terms of becoming an alternative payment means that operates in everyday reality and for the average customer across the globe. That does not involve the process of crypto trading or purchasing BTC or some other tokens with the desire to see them rise in value over a prolonged period of time.

Instead, it simply means using digital currencies as a form of a payment processing system, where ordinary citizens continually give and receive digital currencies for goods and services. That aspect of the cryptosphere also remains tied to the issue of widespread adoption of cryptocurrencies, which is lacking as well. Instead of having an ever-growing or even exponentially rising number of digital wallets, these are expanding only in steady tricks. They too signal that many ordinary individuals do not use cryptocurrencies as actual currencies. But, there are some movements in the crypto and mainstream domains that offer a chance for all of that to change as the world moves deeper into 2022. 

Big Name Movements

One of the clearest factors that are aiding the retail crypto adoption process comes from a range of big corporate names, all of which now accept cryptocurrencies. The most famous ones are Microsoft and Starbucks, just to name a few, all of which began crypto acceptance in 2021. Tesla is another big brand name that did the same, but its influence on the retail process in terms of crypto was much more nuanced and complex, with some negative aspects actually arising from it. 

That included the now-famous decision of Elon Musk to stop the process of payment settlement through crypto in the late spring of 2021. The reason for the same decision was the negative environmental influence that comes with crypto mining. However, that did not dissuade the broader corporate space from seeking options when it comes to the use of digital currency in the retail space. All of them are looking for the same option, even though they might be pursuing it from a range of completely different vectors.

Huge Market

The size of the blockchain market, which includes not just existing cryptocurrencies, but any other digital currency or associate tech is steadily growing. An identical idea applies to the retail sector of the same space. Today, industry experts believe that the value of crypto retail is going to reach 4.6 billion USD by 2028. That will happen as more and more companies involve themselves in crypto retail because of the value that the same technology brings, but also their desire to meet growing demand from their customers. 

Interestingly enough, experts also believe that there is a huge role that will be played by not just huge international corporations, but medium and small businesses. According to numerous research, even these smaller businesses report a growing interest in crypto payments. That is why three in four companies of such size say that their customers and business partners have inquired about the option of using bitcoin or any other digital currency to facilitate payments. 

Demographic Change

The process of crypto adoption – which retail acceptance in many ways also represents – is fueled by a change in the overall demographic. In the space of nearly 15 years, the type of user of crypto went through a generational and cultural shift. At the start of its expansion, individuals like esports fans began using crypto, as it allows for things like online esports betting. Other similar groups began doing the same, but a decade later, the process of adoption changed. The older individuals who might have been at the end of their careers in the early 2010s are now retired. Younger generations are entering the evolving workspace and they have different ideas about the value of money and what form should that value take. 

At the same time, Millennials, who began entering the workspace during the fallout of the 2008 global financial crisis are now entering the middle ages. Yet, their lesions about big government and financial aid packages are still alive and well. Many of the rhythms are thus not closed to uncharacteristic financial deals and options, including cryptocurrencies. That is why 45 percent of those who are digital asset investors were born between 1981 and 1996. Generation Z is not lagging far behind. All of them are no longer those fresh kids in companies working as interns. Instead, they are the new core professional cohort and they are all open to both crypto investment and crypto payments on a regular basis. 

Customer Experience

Beyond the notion that crypto is already a darling for so many individual users and companies that offer digital payments in tokens, the fact that cryptocurrencies offer a different customer experience is also vital. Crypto, unlike banking payments that involve the SWIFT system, for example, involves a much more versatile selection of features and options. Among these are things like in-store networks offering a full range of cyber security options, but also biometric authentication procedures, and mobile payments made in single taps or QR code scans. 

What is just as important is that all of these can quickly evolve further when any individual need of a company or its users arises. These needs will be assessed by AI systems that will follow not just regular metrics, but also the ease with which customers use apps, what benefits they enjoy and which ones they ignore, and so forth. That date will be crucial to the companies just as much as it will be to their users. All of them are already here in 2022 and even more are incoming.

Source: Coindesk