Even since October 2008 when the bitcoins emerged, there seems to be one common question doing around in the market which is: What is the use of it?
There were a handful of enthusiasts then and a few more now who expect that the cryptocurrencies digital currencies will replace the fiat money or the traditional money as you know it commonly soon.
On the other hand, there were and are few other skeptics that said that bitcoin would never be able to match the fiat currency and reach the mainstream.
However, after ten years of its release, the truth regarding bitcoin still lies somewhere in between these two beliefs. There are a few specific things seen and can be deduced about bitcoin and other forms of cryptocurrencies. These are:
- Overall these years in spite of all these diversities in beliefs bitcoin has crossed several hurdles and thrived just like several other altcoins as and when they had hit the market. Still, it can be said that the future of cryptocurrency is still uncertain and vague.
- Most of the people still are apprehensive about bitcoin and other cryptocurrencies and do not use it in their everyday life and transactions.
Even then it is seen that there are a number of things that you can buy with crypto and this number is gradually growing. According to a study conducted by CoinMap, there are about 14,418 settings where bitcoin is currently accepted around the world. This is a very low figure to consider bitcoin to be a currency that can be considered mainstream or have the potential to reach mainstream adoption.
Perhaps it will never be able to reach mainstream and there are two primary reasons for it such as:
- It’s a small supply and
- Unequal distribution.
Therefore, there is a need for a new type of coin that has better characteristics as well as a new user and cryptocurrencies the best fit to possess both these qualities.
The e-commerce industry
There is perhaps one industry that is the best fit for the use of cryptocurrency: e-commerce. You may ask why e-commerce? Well, the stats and figures tell the reasons.
Perhaps there is not a single person who has not bought any product or service over the internet at any point of time in their life. It is for this reason that e-commerce has grown tremendously over the past few years and it is expected to remain the most predominant industry in the years to come.
Take a look at these following stats and you will come to know more about the reasons for its predominance:
- In 2017 it was seen that the retail e-commerce sales all over the world amounted to about $2.3 trillion.
- Looking at this figure the experts expect that the e-retail revenues will to grow to an amazing $4.88 trillion by the year 2021.
Considering these estimates, you can conclude that the projected retail e-commerce sales all over the world will be more than double in just a couple of years from now.
In addition to that, the sales figure for retail e-commerce is also expected to get higher with each passing year when compared to the percentage of global retail sales. The primary reason behind this is that more and more people are using the internet to buy products and services online from the comfort of their own home rather than visiting any brick and mortar store.
However, it is not just the customers who benefit from e-commerce. Even the brands enjoy several benefits when they offer their products and services online. The most significant benefit that the brands enjoy is that they can make such offerings at a much lower cost.
The fact that e-commerce benefits both the customers, the brands and all parties in between suggests that the e-commerce trend and setting will go nowhere soon and continue to grow as years pass by. The growth graph of e-commerce below clearly points out that:
- In 2017, the retail e-commerce sales amounted to 10.2 percent of the entire retail sales all over the globe.
- The projected figure for sales is estimated to reach 17.5 percent by 2021.
Therefore, there is no doubt that the potential for e-commerce is huge and it will keep on growing every day.
The future of bitcoin
Now, the question is how do all these promising facts and figures of e-commerce fit into the future of cryptocurrencies?
The use of the internet is rampant and it is not only for selling product and services. Now you will find most of the people visit the web in the first place to gather any type of information, search for a topic and info for a project in the college, look out what is new and what is going on in the entertainment arena, apply for a loan in a bank or even find the different debt settlement ratings and reviews of different credit counseling agencies.
Although the use of e-commerce is growing, the biggest barrier to the expansion of it is the near-obsolete global financial system. Currently, it is the different banks that act as an intermediary between the buyers and the sellers on the internet. However, this is not a big problem for those people who already shop online but it is the problem for those people who wants to enjoy the benefits of online shopping but cannot open a bank account. These people are:
- The people from the third-world countries where the banking systems are not so developed and
- The disadvantaged people from developed countries as well.
According to a few estimates, these people account for more than two billion people all over the world.
It is the only cryptocurrency that can connect those people with the beneficial world of e-commerce. After all, all that they need is an internet connection and get started. They do not need to download a wallet to use these digital coins as their means of payment and most importantly do not even need to provide any of their personal information.