Envisioning The Future Of Finance And Financial Transactions
As Fintech grows as an industry, we can expect to see drastic changes to the financial landscape and finance industry overall. The future of finance and how financial transactions are made will bring new payment concepts and financial products into the mainstream consciousness. At VegaX, we are at the forefront of innovation with regards to financial products such as indexes, and the blockchain/cryptocurrency space is one of the most exciting developments to watch within the fintech industry.
We envision a future world where not only will cryptocurrencies have gone completely mainstream, but people will be using them for a lot of different types of financial transactions. Here are some possible developments that will likely occur, and some that already exist, within the future of finance.
Those who follow the crypto space closely, and particularly DeFi, expect decentralized finance to continue to grow in influence and the number of people using DeFi products and services. When asked to describe what she sees as DeFi’s future and its impact on the future of finance, Camila Russo, Author of the Infinite Machine: How An Army Of Crypto Hackers Is Building The Next Internet With Ethereum and the founder of The Defiant stated that throughout 2021 DeFi will continue to grow.
She said that so far DeFi has been based on collateral due to collateralized loans, meaning that adoption has been difficult because you need capital to start using it. So the most immediately important development in the DeFi space that needs to become more prevalent is under-collateralized loans to start picking up so that DeFi becomes less of a niche market and available to a wider group of people who might not have the capital to get started.
Over the next five years her prediction was that DeFi would continue to grow rapidly. At some point, she predicts, DeFi will become part of life, in the same way that traditional finance is part of life. It will just be how people deal with money in their everyday lives.
MicroStrategy CEO’s 5-Year Prediction
Michael Saylor, CEO of MicroStrategy, a company that has been buying billions of dollars worth of bitcoin, expects that by 2026 1 billion people will store their life savings on their phone in bitcoin.
As more people begin to own cryptocurrency and complete financial transactions like earning interest, lending, and borrowing with cryptocurrency through DeFi, more companies will begin to accept cryptocurrencies as payment. There is a growing list of companies that accept bitcoin as payment, with the most recent high profile company to accept bitcoin being Tesla. You can now buy a Tesla car with bitcoin. You can also already pay for your Starbucks coffee with bitcoin and shop at Nordstrom with bitcoin.
Buying Groceries With Cryptocurrencies
Picture a world where people go shopping at the supermarket, fill their cart with groceries, and pay for those groceries with cryptocurrencies. That future is not too far away. Consider the fact that more and more companies are starting to offer bitcoin as a payment option it’s only a matter of time where others follow and more cryptocurrencies are added to the list of acceptable payment options. In fact, you can already buy groceries at Whole Foods using cryptocurrencies like bitcoin, litecoin and more with the spending app Spedn. You are also not limited to groceries. Regal Cinemas, Gamestop, Jamba Juice, Baskin Robbins and more are also allowing cryptocurrency purchases through Spedn.
It’s no longer a matter of if, but when. Soon, it will be a regular occurrence to get your morning coffee, purchase groceries, and get a smoothie on a hot day and pay for each of these things with your favorite cryptocurrency. Soon cryptocurrency will be just another regular payment option for anything, like paying with your local currency or with a credit or debit card.
People who question that this is possible will raise the issue of mass adoption of cryptocurrencies, but in addition to building bridges between finance and DeFi, there are advantages to DeFi that cannot be ignored. So, it’s just about getting the word out about these opportunities that are possible with DeFi, and the mainstream population will likely wish to join the DeFi movement as well.
An Increasing Number Of Bitcoin Kiosks In Grocery Stores
A partnership between Coinme and Coinstar, the company that provides cash kiosks available in many grocery stores in the U.S., has enabled consumers to purchase bitcoin in more than 2,200 grocery stores across the U.S. So, not only can you purchase your groceries using bitcoin in many places, but you can also purchase bitcoin to then use on your groceries. The increased access to bitcoin through these grocery store kiosks will only serve to further increase the number of people using bitcoin to purchase their groceries.
Buying And Investing In Real Estate With Cryptocurrencies
Not only are people beginning to pay for groceries with bitcoin, but they are even purchasing homes with bitcoin. The first bitcoin real estate transaction was a single-family home in Austin, Texas. One of the pros of buying real estate with bitcoin is that once contracts have been signed, the transaction can be completed in 10 minutes to 1 day. That’s extremely fast for a typical real estate transaction. Companies like Bithome are providing an easy way for people to buy and sell homes with cryptocurrencies.
However, in the future, the connection between real estate and cryptocurrencies will be even more developed. Innovative tech companies like RealBlocks are using blockchain technology to create new avenues for real estate investing. The RealBlocks platform enables purchasing fractional interest rather than entire portfolios or assets. Through the tokenization of real estate, RealBlocks is reducing fees, and speeding up real estate investment processes. The fact that consumers can purchase fractional interest in real estate properties means that through tokenization, real estate will become more affordable for a larger percentage of the population.
The existence of companies that allow purchasing and selling real estate with bitcoin and purchasing fractional interest in real estate investments means that in the not too distant future, people will be trading real estate assets and adding real estate to their portfolios in record numbers, and anyone will be able to invest in or purchase real estate with many different cryptocurrencies, regardless of whether they are wealthy or not. Real estate ownership will no longer be primarily out of reach for people with less expendable finances.
Additionally, the use of smart contracts will speed up the process of buying and selling real estate and will do away with the need for a middle man to oversee the transfer of ownership. People who want to invest in real estate or buy a home with cryptocurrencies will be able to purchase directly from the seller without the need of investment banks or real estate agents.
Purchasing Flights On Any Airline With Cryptocurrency
Purchasing airline tickets with cryptocurrencies is now possible, however, not every airline accepts them. This means that the option is still rather limited. However, in order to remain competitive, as more and more people begin to use cryptocurrencies for purchases on a regular basis, the airlines that do not yet accept cryptocurrencies as payment will likely begin to accept them so as not to be left behind.
DeFi And Increased Usage Of Cryptocurrencies In Everyday Life
The trend that we are starting to see around the world is that cryptocurrencies are being accepted and adopted by more and more institutions and individuals. It is clear that the future of finance will be decentralized finance, whether it continues to be called “decentralized finance” or not. Over the next few years, consumers around the world will begin to purchase more and more products, services, investments, and assets using cryptocurrencies, until at some point cryptocurrency purchases will become just as common as payments with cash, credit cards, or debit cards. Whether that happens in one year, five years, or ten years, the truth is, at this point it’s inevitable.
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VegaX Holdings: https://vegaxholdings.com/
VegaX Holdings is the “BlackRock” of the Crypto Asset Industry. We provide investors globally with one-stop access to sophisticated and secure crypto asset management. The asset management industry is the largest in the world representing more than $80 trillion dollars in investments through investment products like ETFs, mutual funds, and indices that outperform investments in individual stocks. VegaX is the first to create similar investment products for Crypto providing investors outperformance versus buying individual cryptocurrencies. On average, investors buying VegaX products make 30% more profit versus just holding Bitcoin.
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