Reasons Why Cryptocurrency Is About to Change the Face of Music
By now, you’ve probably heard all about cryptocurrency. There’s a lot of noise out there about what it is, and why it’s shaking up businesses in every market. What you may not know is how much potential it has to change the state of the music industry. Interested? Keep reading to find out why cryptocurrency is about to change the face of music.
Let’s start with the basics. What is cryptocurrency?
Cryptocurrency is defined as: “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”
How can this be better than conventional currency?
Right now, conventional currency has power because the government says it does. However, it isn’t really backed by anything. Governments issue and track currencies to have control. We’re not saying that’s necessarily a good or a bad thing. However, digital currency can give the power back to businesses and buyers in the right scenarios. It gives power to the people, not the institution.
This might sound a little confusing but stay with us. There’s logic behind why adopting this currency makes sense for the music industry.
Standing on your own feet
Okay, so what exactly does “power to the people” look like? The truth is that in the music industry, there are a lot of hands that money passes through. Digital currency and blockchain both force users to be more transparent. The peer to peer system ensures that information is kept up to date and accurate.
In addition, digital currencies bring transactions between the creator and the consumer to a whole new level. It also helps build better relationships. By decentralizing the currency used, the industry actually becomes more secure.
Digital currency isn’t new
We have to take a moment and address the skepticism around digital currency. Many people hear the word “cryptocurrency” and quickly brush it off. They think that it’s a passing trend that everyone will forget about it a few years.
This isn’t true. We’ve already been using digital currencies for years. If you get airline miles or credit card rewards through a program, you’re already using digital currency. Cryptocurrency and blockchain act as further innovation in this space.
How will cryptocurrency change the face of music?
According to TechCrunch contributor Ben Dickson, there are many ways it can have an impact. However, what it will really do is change the industry’s relationship with technology.
“After years of suffering from a thorny and complicated relationship with the tech sector, the music industry might finally find a chance to head in a positive direction by leveraging the blockchain.”
More than anything, that’s what blockchain and cryptocurrency have the power to do. Using these tools will modernize this industry. It can solve problems that have plagued music for decades. This can be everything from the creator to consumer relationship down to royalties.
Wrapping up
Those who say that digital currency will soon be a thing of the past don’t understand the power it has. It’s already being used. The technology that goes along with it may continue to shift. The applications will change too, but the reality is we are living in a digital world. Cryptocurrency is something that the music industry can and should leverage. It can give companies and artists more opportunities and security.
