Given that the technology behind digital currency is relatively new, many are weary to get started. In the face of a new frontier, some are arguing that cryptocurrencies are the future of finance and marketing.
Despite being relatively new, cryptocurrency has already cemented its place in the financial market. With many not truly understanding what makes cryptocurrency work, the other side of those people are the ones utilizing the groundbreaking economic technology.
So what is cryptocurrency? Cryptocurrency is a form of what is known as blockchain technology. This is the tech behind bitcoin and other systems that use ledgers. It essentially means that because of blockchain, the database remains transparent and open as well as decentralized leading to the users ability to transfer and add information anonymously without the risk of security issues.
In simpler terms, cryptocurrency is a way to pay and receive money anonymously across all borders through a decentralized financial system. Similarly to credit cards, cryptocurrencies are primarily used online but with its ever growing popularity, more and more retailers are beginning to accept it. From 2016 to 2017 the market of cryptocurrencies rose from $13.8 billion to a staggering $150 billion.
From a marketing perspective, cryptocurrency may be difficult to use at the current time but technology is developing to solve that. Since the main premise behind the currency is the idea of anonymity, it would be pretty difficult for advertisers to understand and direct marketing towards a specific group as they wouldn’t have that information.
With the current advertising space as essentially simple in regard to collecting large amounts of information given Facebook and Google selling consumer’s data, marketers have had an easy time acquiring personal information and predicting customer behavior.
In the future of cryptocurrency marketers will need to find new methods to advertise to consumers as the use of anonymity is becoming more and more popular as time goes on.