The Luxury Industry and Cryptocurrency
In recent times you’d be hard-pressed to find any country in the world that has not heard of cryptocurrency. It is a 21st-century new craze. Walk into any low-end store, and you will see signage that goes with a message like “Bitcoin accepted here” or “Buy and sell with crypto” or similar messages. These are just your low-budget stores that transact and accept crypto; how much more prominent industries that deal with bigger clients and more significant consumers.
Admittedly, before the bitcoin boom, only a smattering few of the world’s wealthiest citizens had their wealth stored in digital assets. There was an initial doubt that crypto would survive the ever-changing modern landscape, but digital currency has stood the test of time like a sore thumb. The luxury industry is a multi-billion-dollar industry, and this behemoth is not slowing anytime soon. It has been whispered in various circles that the luxury industry will hit the trillion-dollar benchmark. This claim was made two years ago, and you will not be far from the truth if you hazard a guess that the bar has been met. The fashion industry (a subset of the luxury industry), boasts of so many major brands that could make you dizzy, is growing literally with every passing second.
The hype surrounding crypto can be directly linked to so many crypto investors who have had the majority of their assets in digital form. Since it basically depends on the perceived value of the populace, there has been a real boost in the value of crypto. With advanced knowledge by a wide range of the world’s populace of what digital currency brings to the table, so many people have switched to the option of cryptocurrency without batting an eyelid. Cryptocurrency investors and analysts have forecasted that crypto is still in its nascent stages, and exchanges like Coinbase and Redot.com will still gain more prominence. There is a growing belief that the allure will suck in more big-name companies to use it as a medium of exchange, and many individuals will buy crypto.
How Blockchain has Improved Trading Integrity
If there is one significant pull towards cryptocurrency options, it has been the fact that it is based on a safety mechanism called Blockchain. It is the mechanism behind the curtains of crypto. The principle of Blockchain is this; every transaction begins right from the genesis block (the first transaction made on any crypto variety). It is layered by the most recent transaction made on that cryptocurrency, so there is no central system, making it as decentralized as possible. With every transaction, there is a block layered on the previous. After the banking crisis in Cyprus, which caused a lot of citizens to lose their hard-earned saved earnings to the government, there was a wake-up call that the banks were not safe enough to save money. This issue caused an astronomical rise in the value of bitcoin in 2013.
With blockchain technology, the data from each block can be used to trace whatever goods you want. Its authenticity is foolproof too. The internet is wrought with so many fraudulent practices, and with the growing need to make transactions online, Blockchain has made it easy to give information of goods and services to be traded with little to no risk of being defrauded. This is also a smooth, quick, and easy transaction without having to wait long at the edge of your seats. It is cutting-edge technology.
Fashion and NFTs
The fashion industry has also adopted ways to follow the modern trend of digital assets. Some of them have adopted NFTs for various means. But what are NFTs?
NFTs or non-fungible tokens have also taken center stage in recent times. According to Wikipedia, it is an interchangeable unit of data stored on a digital ledger. Since the advent of NFTs, it has been used in memes, sports, music, etc. Since the fashion industry has joined the queue, many of these fashion brands will be releasing their own tokens over the coming years. Nike took the first token steps by releasing their own NFTs called CryptoKicks. Since then, some luxury fashion companies which have dabbled with NFTs are Burberry who uses NFTs for mythical games. Louis Vuitton possesses NFTs that cannot be purchased but can only be used as collectibles, and Gucci, who are using theirs for a short film. It is a growing pool of fashion industries using NFTs, and it is still growing.
Luxury Brands That Trade with Crypto
As earlier ascertained, there are small shops that trade in crypto, so luxury brands trading with crypto is a no-brainer. Since luxury brands deal with many wealth exchanging hands, they have embraced a safer way of making transactions to fight against counterfeiting. With a big brand company like Tesla still going back and forth about accepting cryptocurrency for transactions, expect other luxury car companies to follow in the not-too-distant future. However, big fashion labels such as HUBLOT, Cartier, PRADA, Philipp Plein, and LVMH also want to take advantage of the 2 trillion dollar cryptocurrency option/alternative.
The Future of Luxury Industry in the World of Cryptocurrency
There is a risk of being left behind in a fast-paced world if new cultures are not adopted. The millennials are in a crypto obsession phase, and it would take something bordering on the catastrophic for the world to be unwrapped from this craze. The fashion industry is still testing the waters for now. They know it is a safe means for business transactions, but they want to come in at the right time.
With rich nations like China and the Arab nations and individuals gracing the Forbes coming into newfound wealth like never before, it is essential that luxury brands adopt this digital method. Their doorsteps will be the first port of call when money is set to be lavished.
Although there is niggling concern among the minority that anything could still happen to crypto, and we could go back to using our different currencies, they are only whispers. Crypto investors will continue to pump money into the future of digital currency, so there is no danger of crypto collapse anytime soon.