The growth of big data correlates with the rising popularity of cryptocurrencies. A growing number of companies are using big data to handle cryptocurrency payments more easily.
The advantages of big data with the cryptocurrency market are becoming more apparent every day. In October, Analytics Insight published an article on the ways that big data is helping with understanding the crypto market.
As advances in big data make cryptocurrencies more secure and convenient, the popularity of crypto payments is increasing. In 2020, digital currencies are more popular than ever before.
Big Data Propels Cryptocurrency Renaissance
Before you can appreciate the benefits of big data for the cryptocurrency market, it is necessary to understand the history for context. It’s been a bumpy road for Bitcoin. In the 10 or so years since its inception, the value of Bitcoin has ridden steep highs and plummeted to depressing depths; fortunes have been made and lost. Only the bravest of the brave were willing to sink substantial amounts of money into this volatile currency, but those who did and then stuck with it through the highs and lows are now sitting pretty.
The amount of money that people make from bitcoin depends on when they invested. Around 2013 and 2014, the value of bitcoin remained around a few dollars a coin. By 2017, it reached $20,000, before settling at a price of $10,000 in 2019.
A lot of factors are driving the market. Big data is one of them. Nevertheless, the market has been turbulent, regardless of advances in machine learning and other big data technology.
Millennials, of course, were quick to see the benefits of a decentralised currency, but it’s taken a little longer for older generations to trust that their precious savings wouldn’t go up in a puff of smoke. One of the reasons they have had more difficulty understanding cryptocurrencies is that they don’t understand the big data technology it is predicated on. Today, Bitcoin and other cryptocurrencies, such as Ethereum, have earned a place in the mainstream market and cryptocurrency has become a valid alternative to traditional banking.
One of the latest big corporations to include cryptocurrency as a payment method is Starbucks. This is a significant event in the cryptocurrency arc because not only is Starbucks international, but it’s also a business that relies on small, daily interactions. Starbucks has recognized the fact that Bitcoin and the like are so popular that people are using it in the same way they’d use their small change – naturally and spontaneously. They also have the big data technology to use it to its fullest potential. This is proof that cryptocurrency is not relegated to use by the dark and seedy criminal underworld, as many pundits insinuated, and many governments feared. Cryptocurrency is being used by everyday people in everyday situations.
The introduction of cryptocurrency credit cards paved the way for consumers to make purchases with their cryptocurrency because they can be read by any card reader and the currency can be automatically converted into a fiat currency. This means that even if the retailer or catering establishment doesn’t accept your cryptocurrency, you can still use it to pay for your goods. This is another breakthrough that wouldn’t have been available without big data. There are draw backs to this, of course, the main one of which being the fact that cryptocurrency is still subject to devaluation. Your chai latte and blueberry muffin could suddenly become as expensive as a 3-course meal should the market take a hit. It is for this very reason that many businesses are still unwilling to accept cryptocurrencies for major purchases. However, the tide is turning.
One industry that has supported Bitcoin almost since its launch is the gambling industry. Online real money casinos were the first out of the gate to include Bitcoin as a payment method for their casino account holders. Bitcoin offers online casino players a level of privacy and security that other payment methods just can’t match. By eliminating the middleman, namely the bank, you minimise the risk of identity theft. Your personal data is kept private and because you are the only person to hold the details of your account it becomes much harder, if not impossible, for someone to gain access to your funds. Bitcoin casinos now number in the hundreds and that number continues to grow every year. Ethereum is also making waves in the casino industry, with many saying that Ethereum’s ‘smart contract casinos’ are the future – but there’s a long way to go yet.
Cryptocurrency may be gaining more and more popularity among online casinos and their clientele, but this payment method has not yet reached the bulk of the populous. Having said that, with the UK changing the laws regarding credit card use for gamblers, we’re likely to see the number of those switching to Bitcoin and Ethereum grow exponentially.
We predict that the next 10 years will see a huge shift towards cryptocurrency and away from centralised banking. Cryptocurrency allows people to become their own bank, and this means that not only do they not have to share all their personal information with a third-party, but they also eliminate all the fees associated with a bank account. Many people have waited for Bitcoin and the like to stabilise before jumping on the bandwagon, and now that it has – for the most part – stabilised, we’ll see a cryptocurrency boom. The best part about cryptocurrency is that it’s pretty straightforward to get started – all you need to do is purchase the cryptocurrency of your choice and store it in an e-wallet – and you don’t have to pass a credit check in order to get started.
Big Data is Changing the Future of Cryptocurrencies Forever
Big data has played a vital role in the growth of the cryptocurrency market. There are a lot of changes that bitcoin has created in recent years. Big data is making it easier for companies to capitalize off these developments.