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Is There a Place for Bitcoin in the Fashion World?
It is hard to imagine a time when the cryptocurrency market struggled to gain recognition. It now has not only gained recognition but is also competing with some of the world’s most valuable resources like gold. Businesses all over are beginning to accept and adopt cryptocurrency as a valid means of payment.
The fashion industry is one of the quickest ways to take bitcoin to the masses. Recently, Philipp Plein became the first fashion enterprise to support more than ten cryptocurrencies. In other words, users buying any item from this brand can pay through any of these ten cryptocurrencies.
What is a cryptocurrency, and how does it apply to the fashion world? Does cryptocurrency have a place in the fashion world, and are there any limitations to it? All these questions and more are what Paybis examines in this article.
Cryptocurrency in the Fashion World
Cryptocurrency is a digital currency that operates on a ledger known as ‘blockchain’ and technology known as ‘blockchain technology.’ Cryptocurrency is like the normal fiat currency, only that it is digital and is not subjected to any regulation as with regular cryptocurrencies.
The blockchain facilitates the functioning and ensures there is better accountability and transparency. Cryptocurrency is decentralized; that is, it is not controlled or dictated by a government or bank. While the unregulated nature of digital currencies comes with many benefits, it is not without its shortcomings. The notable shortcoming of digital currencies not being regulated is volatility.
Bitcoin is the most popular coin in the cryptocurrency market, with Ethereum trailing closely behind it. Bitcoin price has not been stable for many years now; it goes up, and other times it drops. The total bitcoin market is currently valued at over $1 trillion. Following Philipp Plein’s announcement, many more fashion companies have started putting structures in place to facilitate crypto payments.
What Experts Are Saying About Cryptocurrency in the Fashion World
An expert says the covid-19 pandemic influenced the rising popularity of cryptocurrency in the fashion world. Because they could not make physical purchases for fashion items, they had to consider virtual channels of making payments, and that is where cryptocurrency comes into play.
The lockdown pushed people to find alternatives to cash for shopping to reduce the spread of the virus. Therefore, they had to think of ways to make their money and spend it while on lockdown. People who never looked at cryptocurrency’s way started getting interested. At this time, many people began to invest in cryptocurrency.
Luxury fashion brands are exploring the potential use of cryptocurrency. There should be an increase in the rate at which Bitcoin, Ethereum, and others are accepted in the fashion world. Another expert assures that this trend of the cryptocurrency market will not be limited to luxury brands.
Major fashion brands are already creating and trading NFTs (non-fungible tokens). The fashion world is being incorporated into the virtual world. A world where people interact with each other using avatars, says another expert. Cryptocurrency may not become a mainstream payment instrument, but experts say it won’t be ignored. Virtual currencies are the future of money across different sectors. Therefore, more fashion brands are expected to accept it in the future than those already doing so.
The trend has always been the currency of the fashion world. Right now, blockchain technology seems to be number 1 on the ‘trend.’ The technology is giving the industry a choice: if you don’t swim, you sink. It feels more like giving a monetary trend a place in the fashion world.
The Many Uses of Cryptocurrency in the Fashion World
Blockchain ultimately has the potential to change the face of manufacturing in the fashion world. The availability of IBM blockchain refines the supply chain. Fashion companies can use the transparency of blockchain technology to identify issues in a supply chain and streamline industrial processes.
Among the many technologies being adopted to redefine the way industries conduct businesses is blockchain. It connects the fashion supply chain with a real-time flow of data. As such, fragmented data is replaced with a single decentralized ledger visible to all stakeholders.
Cryptocurrency also goes a long way in protecting the authenticity of brands. The fashion world has reportedly lost close to $100 billion to counterfeiting. Counterfeited products damage the reputation of brands and bring about huge losses. In addition, the quality of products is inevitably tarnished. Leading brands have to adopt new ways of reassuring customers that they are buying the real thing.
Finally, fashion businesses that invest in cryptocurrency like Ethereum continue to gain and retain the interest of cryptocurrency enthusiasts.
Bitcoin Influence on the Fashion World
Bitcoin can bring a change to how payments are made in the fashion industry. Aside from Phillip Plein, many more fashion brands are gravitating towards accepting bitcoin, Ethereum, and other digital currencies as payment modes.
Bitcoin ultimately inspires fashion choices because the more money you spend, the higher your chances of getting quality products. Fashion companies are designing bitcoin-themed outfits. More are creating biometric rings that use blockchain technology to help customers easily manage their passwords and credit card payments.
The optimum security of blockchain technology helps prevent fraud. It also helps simplify the supply chain, thereby enhancing customers’ experiences with fashion trends. Adopting bitcoin payments is a great strategy fashion enterprises can use to get customers while taking advantage of the disposable income available.
Integration of bitcoin in the fashion world is exciting news for fashion enthusiasts who invest in cryptocurrency. However, it is important that the brand understands its audience and ensures crypto integration suits them. If its customer base is used to the conservative payment means the world is used to, it may lose its customer if it invests in cryptocurrency. Nevertheless, we cannot but be amazed at how fraud and scams have been eradicated via cryptocurrency adoption.