The rapidly developing crypto market is disrupting the world — and investors are finally waking up to it.
In the last year alone, the value of the crypto market has skyrocketed from $205 billion to $2 trillion. But the growth is far from over: The opportunity is massive.
The Value of the Crypto Market Is Skyrocketing
Cryptos will become a critical component of the financial service, health care, logistics and real estate industries, just to name a few.
Powered by blockchain technology, cryptos solve many of the problems that nag these sectors. And with $45 trillion in combined revenues annually among the four, crypto has a large runway for growth…
WELCOME TO THE CRYPTO REVOLUTION
Financial services present the most obvious use case for cryptos. By removing middlemen, cryptos are democratizing finance and already transforming services such as lending and banking.
The traditional lending process is inefficient and prohibitive for institutions and consumers. It takes an average of three to four weeks to receive a credit card after approval, if approved at all. Mortgage closings take even longer, averaging 42 days according to Ellie Mae. This limits business for institutions and prevents timely purchases for consumers. Crypto-based lending can dramatically speed up this process, while potentially offering better financing terms.
Cryptos are also eliminating barriers present in the traditional banking system. The current method of transferring money across the globe is burdensome. The fastest method of transfer has historically been a money wire, but these can take up to five days to clear before the funds are usable. Crypto, on the other hand, enables transfers that are practically instantaneous, with funds that are made available right away.
Health care is another candidate for disruption. Smart contract cryptos will enable faster transactions, drug and medical device tracking, and streamlined medical data management.
Smart contracts operate without manual oversight and can ensure hospital supply orders are filled, paid and shipped quickly. This is favorable over typical transactions which require multiple steps such as signatures, invoices and payments before deliveries are made.
Cryptos can also contribute to increased patient engagement and foster greater connection between patients and providers. In return for tracking health care data, patients can receive crypto token incentives. This helps providers to better understand their patients and promotes patient adherence. Patients can leave reviews for health care services and receive crypto tokens in return, which can then be used toward future health care services.
Similar to the way cryptos streamline health care transactions, they can also make the logistics cycle more efficient. Smart contract cryptos enable supply chain transparency while securing and streamlining agreement terms, record keeping and payments. By eliminating middle men, cryptos can also save money for all parties involved.
The opportunity for cryptocurrencies in logistics is so huge that logistics leader DHL covered the topic in its Blockchain in Logistics report.
Cryptos are also opening the door for real estate investing on a large scale. Investing in real estate beyond primary residences has historically been limited to a select group of people with a lot of cash. Cryptos are breaking down this barrier.
Investors can exchange cryptos for fractional ownership stakes in hard assets such as real estate in a process known as tokenization. This allows investors to diversify their real estate portfolios and also improves liquidity, meaning you can buy and sell more easily.
THE CRYPTO FUTURE IS NOW
The use cases for cryptos that I’ve outlined above are just a few of many. In reality, cryptocurrencies will likely be influential in every industry in some way. And this influence is growing faster than you may realize.
With each new development, the opportunity in crypto grows stronger. But there are now over 9,000 tradeable cryptocurrencies, which means picking the right ones can be challenging.