Cryptocurrencies: Business Case

Updated: Apr 9


You have probably heard of Bitcoin, Ethereum, NFT's, or blockchain. But what does all really mean? How can the vehicle industry benefit from this new technology?

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Blockchain Network- Powering Cryptocurrencies such as Tezos, Bitcoin, Ethereum, & Altcoins


In this article, we will take a look at the business case for cryptocurrencies. In order to do so, we have to understand what they can be used for and how they work.



Cryptocurrencies are a form of digital currency that is not controlled by any central bank or organization. They are created and transferred independently of any government or organization. This facilitates transactions across the world, and between individuals and businesses. Cryptocurrencies have the potential to change the way we do business with each other, and the way we interact with our money. However, it is still too early to tell how cryptocurrencies will be used in our daily lives.


Cryptocurrencies are digital tokens that are used as a medium of exchange. Just like a U.S. dollar, you may use cryptocurrencies to purchase certain goods and services. Digital coins are created and stored on a blockchain network which is a decentralized public ledger. This means that each cryptocurrency lives in a network of users (computers, phones, tablets, or any other platform with access to a digital wallet) and therefore, each transaction is transparent and verified by the network, instead of a third party that may charge a commission fee, or even store all data for every transaction. 


“How are cryptocurrencies transforming the financial infrastructure?”


Cryptocurrency has become a basis for future development in finance industry where challenges for the modern economy and society lies in abundance. The popularity of Bitcoin brings with it an unimaginable madness making cryptocurrencies irresistible to a significant user base that may range from individuals to multi-million dollar enterprises.


Summary

Paying for services using cryptocurrencies may facilitate the way enterprises interact with consumers and ultimately how they deliver such services. Since the Covid-19 pandemic, consumers have flooded the internet in search for goods and services, and they have adapted to a new way of purchasing essential commodities as well as luxury items. Being able to pay with cryptocurrencies, allows consumers to purchase goods and services from businesses thousands of miles away. In the case of dealership and rental enterprises services, cryptocurrencies may represent a way for them to engage to a new set of consumers. Being open to a modern business model is key, but making sure such model is sustainable, is essential. 


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