Do you know what’s interesting?
In his book “Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company” by Andrew Grove (former Intel CEO), talks about the “inflexion point” where technology completely disrupts industries, overnight. I have mounting evidence that crypto will do the same.
Remember Kodak camera?
It was worth $31 billion during its peak and now it’s a shell of its former self.
How about Blockbuster?
The company had 9,000 stores during its peak.
There is only 1 Blockbuster store left on the planet … (and yeah, Netflix killed Blockbuster)
Cryptocurrency is and will disrupt old industries.
CEOs will be left scratching their heads, asking “We’re going bankrupt! Uh, what happened?”
With a bit of imagination, we can forecast 3 industries that will get disrupted in the next 5-10 years thanks to the brightest minds working in the cryptocurrency space.
1. Remittance Industry
Remittance is a $500 billion industry. Migrant workers send money overseas to their families every month and they need companies that send the money home. Companies like Western Union, MoneyGram, and RIA thrive in the remittance market and yes, they charge a hefty fee.
For example, if I were to use Money Gram and want to send an international money transfer to Mexico, it would cost $101 to send $5,000.
Ouch. It’s strange if you think about it: shouldn’t it cost the same if I send $10 or $10,000 to Mexico?
The more money I send, the higher the fee.
What’s the alternative?
Enter crypto. If I want to send $500 USDT to my friend in Mexico, it would cost $0.10.
How much does it cost if I want to transfer $5,000 to my Mexican friend?
(Yes, I know that it cost money to convert USD to USDT but I’m talking strictly about fees for sending the money)
As of 2020, it seems that migrant workers are using PAXFUL and other P2P exchanges to circumvent Western Union or MoneyGram.
Since the market is intelligent and moves to whatever makes financial sense, legacy companies like Western Union or MoneyGram will go out of business (if they fail to adopt and lower their service fee)
In 5-10 years, I predict that technologically savvy migrant workers will simply send money home using USDT.
Do you know what’s annoying?
That’s why when you go to the convenience store and use your credit card, that’s a sign that says “your purchase must be over $10” because the store owner has to pay a 2.3% for every transaction. Ouch.
Because of the high overhead, a micro-transaction doesn’t make financial sense. But cryptocurrency has enabled a world of micro-transactions. Instead of paying a 2.3% fee for a $10 purchase, imagine paying a fraction of a penny.
You can do that right now with stable coins.
A stable coin is backed up 1:1 with USD. You can buy various stable coins in the market, such as USDT, BUSD, PAX etc.
Anyways, stable coins allow online businesses to get payment without hurting their profit margin with payment processing. For example, an online newsletter site could charge its users $0.10 to view per article instead of a monthly $10 membership fee.
Another example: you like watching Monday night football. But you only watch once a week and you don’t want to pay $60 for the cable package for various sports channels. Instead, the cable company can charge you $2 per hour of viewing time and that’s it!
Check out: 7 Best Bitcoin Payment Gateways For Merchant Account & Services
An example of cryptocurrency microtransaction:
Brave is an internet browser with its cryptocurrency named BAT (Basic Attention Token). If you’re using Brave browser, you can opt-in to view ads. If you do so, Brave will reward you with BAT which you can redeem for fiat.
I like that idea because it seems fair: the company gives you back something in return for harvesting your data / your attention.
Cryptocurrency enables bypassing the traditional middlemen (payment processor), this means it passes the savings to merchants and customers alike.
In the upcoming years, I think companies will adopt crypto micro transactions because the younger generation is more tech-savvy (and there will be a market demand)
3. Banking Industry
Imagine storing $100,000 cash on the internet but without a bank.
You can do that, thanks to stable coins.
What is a stable coin?
It’s a coin that is pegged 1:1 with a fiat currency.
For example, you can exchange $1 USDT (stable coin) with $1 fiat dollar.
What’s cool is that there are stable coins pegged to the Yen, Yuan, Pound, Euro etc.
Why use a stable coin?
Because you can store $1,000,000 worth of fiat on the blockchain. Say you want to transfer $1,000,000 overseas … you can do that with a click of a button without interacting with a bank.
The 1 million USDT will arrive in another wallet within 15 minutes or less.
Check out: Best USDT Wallets
Right now you can become your own bank using the various stable coins such as PAX, USDT, TUSD, BUSD etc.
The only issue is privacy because anyone can look up the amount of money you have in the Etheruem network. Can a developer make a stable coin with privacy enabled to prevent prying eyes from viewing my account balance?
That would be great.
Do you want to dive deeper into the stable coin rabbit hole?
Read about DAI token, which is pegged 1:1 with USD and it uses ETH as collateral. To me, that’s just mind-blowing.
Fun fact: on Binance, you can deposit USDT and earn interest!
You can apply for a loan on Binance and use BTC as collateral.
As of 2020, there are billions of “unbanked” people. But thanks to cryptocurrency, they can safely store their fiat on the blockchain instead of hiding cash underneath the mattress. Moreover, people who live in Venezuela can escape hyperinflation of their local currency by storing their wealth in USDT.
Becoming your own sovereign bank sounds futuristic. If you were to tell someone that in the 1980s, they wouldn’t believe you. Fast forward to 2020, keeping your own crypto-fiat on the blockchain is a reality.
You either ride the disruption or get left behind
As for cryptocurrency, I can foresee the disruption of the remittance industry, reshaping the online advertisement segment through micro-payment, and empowering the world’s poor to become their own bank.
The business world is cut-throat and companies come and go. You can say it’s an “evolution process” in the business world. Companies that were considered “titans” like Blockbuster, Kodak, Blackberry, Sears die off because the industry got disrupted by new technology.
And cryptocurrency will destroy or reshape many of the old legacy industries, giving birth to new and innovating companies. That is good news for regular people like you and I. Why? Because these new companies offer better value and convenience!
I invite you to take part in the crypto disruption by sending money abroad via cryptocurrency, open your own “bank account” or start accepting crypto on your online shops.
The cryptocurrency disruption is upon us! Let’s all take part in this historical moment.
Thanks for reading today’s article. What is your idea of the next industry that will get disrupted by crypto? Leave your thoughts in the comment box below.
Harsh Agrawal is the Crypto exchanges and bots experts for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in fintech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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