Why Use Industry-Specific Cryptocurrency?

The beauty of cryptocurrencies is in their versatility. Free from government and bank regulation, cryptocurrencies can be tailor-made to fit any specific need or industry you can imagine. And with that freedom, of course, comes hundreds of industry-specific cryptocurrencies emerging online, for everything from dentistry to Burger King Whoppercoins (yes, that’s a real thing).

Have it your way, I guess? Credit: Shutterstock

But is this too much? Why use industry-specific coins in the first place? If cryptocurrency could one day take over as the dominant currency, shouldn’t we be moving towards one global cryptocurrency like Bitcoin, not creating hundreds of specific ones?

First of all, cryptocurrency shouldn’t be thought of as a replacement for commonly accepted worldwide currency. Cryptocurrencies are a revolutionary next step in digital transactions and finance, but the process of completely supplanting traditional money will be a very long, very arduous task that we have no way of assuming the outcome.

Instead, cryptocurrency works best right now as a supplementary currency, working to provide inherent advantages that traditional money can’t offer. And naturally, this includes industry-specific coins.

So why use multiple cryptocurrencies in the first place?

Moving towards a multitude of coins rather than one generic one is, in fact, good for the crypto market as a whole. Even under the hood, crypto coins can differ and specialize in certain aspects. Some coins require different mining programs, encouraging decentralized production. Different rules can apply to different currencies, like emphasizing security over accessibility. Some are made to be rarer and harder to mine than others to increase rarity.

The vast array of cryptocurrencies helps to foster the greater crypto community and appeal to everyone’s individual needs.

Okay, but why industry-specific coins?

There are multiple reasons:

• Cryptocurrency standardizes the currency used for globalized industries. This process allows businesses to effortlessly set specific prices for all their goods and services, regardless of country. Customers also benefit from lowered worldwide costs and easily displayed competitive prices.
• More than just bypassing multiple global currencies, industry cryptocurrencies will also not be affected by the overall market. Industries can cut out the middleman and set prices they feel is fair and competitive, without being constrained by market fluctuations or taxes.
• Through specific cryptocurrencies, businesses can create and foster communities for their customers to serve them better. Users can share reviews, suggest new customers, and interact more directly with these industries in return for more coins.
• For businesses, implementation of cryptocurrency can help build brands. If you’re operating a dentist’s office, for instance, accepting Dentacoin is an easy way to associate yourself with a name known for quality dental care. For customers, businesses supporting industry-specific coins means more accessible payment methods, and is a good indicator of quality, innovation, and customer support.

Evidently, there are a number of good reasons for the proliferation of multiple cryptocurrencies, and industry-specific cryptocurrency too. Chelle Coin, for instance, is a real estate backed cryptocurrency, separating itself from others with a guarantee of residuals based off a thriving real estate market.

There’s room for thousands of coins with their own rules and uses, and we’re sure to see thousands more fill different needs for years to come.