At present Bitcoin and other CryptoCurrencies are the fastest growing industries in the market. Not just the usage but the raising awareness and increasing popularity of Bitcoin and CryptoCurrency has now become a threat for other industries. Out which there are 3 major industries that are going to be disrupted in 2021
Remittance is one of the major $500 billion industries in the present market. Migrant workers send money from overseas to their families every month and they need remittance companies that send the money home. Companies like Western Union, MoneyGram, and RIA thrive in the remittance market and 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.
The more money I send, the higher the cost will be charged.
Now coming to the alternative
Enter crypto. If I want to send $500 USDT to my friend in Mexico, it would cost $0.10.
Since the market is intelligent and moves to whatever makes financial sense, remittance companies like Western Union or MoneyGram are going to go out of business (if they fail to adopt and lower their service fee)
That’s 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 as transaction charges. It's only because of the high overhead and as 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.
A stable coin is backed up 1:1 with USD. You can buy and get various stable coins in the market, such as USDT, BUSD, PAX etc. 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!
An example of cryptocurrency microtransaction:
Brave is an internet browser having its own cryptocurrency naming 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, many companies are going to adopt cryptocurrency based micro transactions because the present generation is more tech-savvy (and there will be a huge market demand)
Just imagine storing a cash of $100,000 on the internet but without an actual bank.
It may Sound weird? But You can do that, thanks to stable coins.
What is a stable coin?
It’s a coin that is pegged 1:1 with a physical currency.
For example, you can exchange $1 USDT (stable coin) with $1 dollar.
Why use a stable coin?
Because you can store $1,000,000 worth of cash on the blockchain. Say you want to transfer $1,000,000 overseas … you can do that with a click of a button without any interaction with a bank and bank charges.
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.
Here the biggest advantage is, on Binance you can deposit USDT and earn interest. And you can apply for a loan on Binance and use BTC as collateral to the loan.
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Becoming your own sovereign bank may sound futuristic but If you were to tell someone that in the 1980s, they might not believe you. Fast forward to 2021, keeping your own crypto-fiat on the blockchain is a reality. Now it's your choice, you either ride the disruption or get left behind
Cryptocurrency is going to destroy or reshape many of the old legacy industries, giving birth to new and innovating companies.
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