Cryptocurrency has been arguably the big financial breakthrough of the past few years and in 2017 it really took off, led of course by bitcoin. The potential of such digital currencies and the technology which powers them has created the Internet of Value. But when does control lie within these spheres?
While both have created a lot of buzz and interest, the future of cryptocurrency remains unclear. Changes introduced buy them both have offered many fresh opportunities for businesses as RSM reports, with the middle market especially holding a lot of power to take advantage of these developments and improve their futures.
Introducing the Internet of Value
The Internet of Value essentially refers to the allowance of value transactions (such as sending a foreign currency overseas) to be made almost instantly over the internet. It aims for value to be transferred across the internet at the same rate as information and such a goal is being worked towards and slowly met thanks to the development of blockchain technology.
Most cryptocurrencies use blockchain to power their transactions. This is the first technology which allows one asset to be transferred from person to person directly, without having to use a middleman such as a bank, marketplace or third-party service. Therefore, nothing is standing in the way to slow the process down or disrupt such financial transactions.
It’s not just cryptocurrencies that are adopting blockchain technology, Nasdaq are using it to enable firms to manage shares, the Estonian government has used it for looking after healthcare records and more. These all help support the Internet of Value’s mission though there is still work to do. Few blockchains are connected which means not all information can be exchanged, let alone instantly, so greater adoption is required which the middle market could provide.
The Middle Market’s Influence
Referring to those growing businesses that occupy the space between start-ups, small firms and SMEs and giant global corporations, it is the middle market which needs to innovate to take that next step up. Already some ecommerce companies are beginning to integrate cryptocurrencies within their model as they help with fraud prevention, are quick and secure.
There are many start-ups using such technology and involved in the Internet of Value. While this does provide some uptake and investment in cryptocurrency, in order for it to really take off much more is needed. Middle market companies can offer this, using the benefits of the Internet of Value to speed up their payment processes and increasing the security through cryptocurrency acceptance and usage.
Given there is no middleman required, this can help cut the budgets for many, allowing this money saved to benefit these businesses while providing investment in cryptocurrency and its technologies. If there is no uptake from the middle or upper market then the Internet of Value and cryptocurrencies may just remain an interesting concept, used only by smaller investors and businesses.
Unless there is great investment from another source then the middle market does look like it could control the future for the Internet of Value and cryptocurrency as a whole.