Cryptocurrency continues its mainstreaming journey as a diverse range of industries now accept different coins for standard purchases. Here’s a closer look at this trend, which bodes well for the future of cryptocurrencies.
Since their launch over a decade ago, cryptocurrencies have won their fair share of fans and critics.
While most commentators recognize the potential for huge gains that crypto, including Bitcoin, has displayed, one of the downsides of this asset class has been its wild price fluctuations and the limited number of retailers who would accept it as a standard method of payment.
Over the past two years, however, the situation has changed dramatically.
Here’s a close look at some of the many industries where cryptocurrency is becoming standard tender for transactions, from restaurant meals to luxury supercars.
Crypto is being embraced by a diverse range of industries.
Two hallmarks of a reliable currency are that it is a good store of value and can be used for transactions without the need to convert it to an intermediate currency.
Cryptocurrency is increasingly checking these two boxes, with recent reports highlighting its use in a variety of industries that previously only accepted traditional currency, credit cards, and possibly electronic payments and directives from chambers of commerce recommending it to several industries.
This is especially good news considering the mainstream outlook on various coins still being a bit mixed. The supposed volatility of the crypto market has always been a point of criticism for some, with those same people often highlighting aspects such as the memecoins to bolster their argument. These memecoins, such as Dogecoin or Shiba Inu, are frequently seen as the wildcards within the industry due to their erratic value and speculative nature.
While volatility is an inherent part of the industry, to some extent, the risks can be minimized through smart investing. Even the appeal of memecoins, which are often looked at as the wildcards within the industry, is becoming more and more mainstream, over more consistent time frames. For instance, Dogecoin, initially launched as a joke, has seen increasing adoption and integration into mainstream platforms and transactions.
This could be a microcosm of the industry as a whole, where cryptocurrency is making strides as a payment method:
Dining and entertainment
According to a recent report by BitPay, 72 food and dining businesses in North America have switched to accepting crypto as a payment method this year, with their international counterparts following suit – in some cases even being ahead of the curve.
- In terms of the US market, Chipotle, Domino’s, and Chuck E. Cheese now accept crypto as a standard payment method.
- The lucrative home delivery industry is following suit, with Uber Eats and DoorDash enabling crypto payments as of this year.
Further afield, examples like Burger King Venezuela, which switched to Bitcoin payments as early as 2020 to combat rapidly depreciating currency and hyperinflation, show that this phenomenon extends far beyond the borders of developed nations and is likely to become a global trend. The proliferation of crypto payment gateways will only aid this switch to alternative assets going forward.
Luxury goods
High-end retail brands are acutely aware that their clientele, especially in the younger demographic, often includes many active crypto traders.
This business intelligence may be a factor behind their adoption of crypto over the past two years, with many high-fashion names now accepting alternative currencies.
- Gucci, Ralph Lauren, and the watch manufacturer Hublot currently accept Bitcoin for payments, with other brands likely to join as the trend gains momentum.
- In terms of the jewelry industry, the likes of Jewelry Affairs and CRM have already announced that they will accept Bitcoin this year.
This signals a realization in the industry that cash and credit card policies can be limiting in terms of growing the customer base to include younger, high-net-worth clients.
Online gaming
The lucrative online gaming industry is a natural fit for cryptocurrency payments, with pay-to-download transactions and in-game purchases being denominated in Bitcoin and other cryptos across a wide range of gaming platforms.
Online casinos have been quick to pick up on this trend as well, with crypto gambling gaining popularity as casino deregulation proceeds across the globe. Both traditional and emerging markets are discovering the thrill of wagering on slots, table games, and poker as home entertainment gains popularity thanks to increased internet access.
Cryptocurrency casinos offer a distinct advantage for traders who would like to convert their crypto gains into virtual casino chips to enjoy the relaxation of online gambling with the prospect of increasing their holdings even further with a lucky win.
Previously, crypto holdings would have to be sold into fiat currency, with a bank transfer or credit card being used to fund casino accounts. The ability to use crypto directly for this purpose is not only more convenient but also saves a significant amount of money on transaction fees.
Vehicles and Automotive
Staying on the theme of crypto traders in the high-income bracket, several vehicle manufacturers, including the famous Italian sports car manufacturer Ferrari, are starting to accept cryptocurrency as payment for vehicles.
Ferrari, along with Porsche and Lamborghini, is an iconic brand and status symbol favored by successful crypto traders, who have also been keen collectors of Rolex and Audemars Piguet watches over the past decade.
The manufacturer’s announcement that it will now accept crypto could represent significant savings for traders, who no longer need to sell their crypto assets into regular currency before buying vehicles with price tags well above $100,000.
Travel and hospitality
Travel and leisure have been among the biggest beneficiaries of the post-pandemic “revenge travel” trend, which saw millions of consumers relieve their pent-up demand for airline flights and hotel bookings following several years of lockdowns and restrictions on freedom of movement.
Once again, the high-income bracket is leading the trend, with private jet charter businesses like LunaJets, and luxury cruise providers like Royal Caribbean accepting crypto payments.
Conclusion
With cryptocurrencies now accepted by mainstream retailers at various price points, especially at the higher end, there can be no doubt that cryptocurrency has come of age as a mainstream asset.
Despite fluctuations in the value of Bitcoin and other crypto assets, retailers are putting their faith in cryptocurrency and the spending power of successful traders as they seek to attract a new generation of customers.
We expect to see this trend expand in the years to come as competitors realize the benefits of accepting crypto payments in addition to cash, credit cards, and other electronic settlement methods.
