Money, Currency And The Internet of Everything

Money, Currency And The Internet of Everything

Money, Currency And The Internet of EverythingBitcoin

Imagine taking the subway, and instead of paying for it by fishing out a handful of change, you simply walk in, with a wearable, perhaps a bracelet or pendant, signing you in as you enter the subway and signing out once you leave. The subway system’s turnstile computers calculate the distance taken on your trip and charge an appropriate amount to your BitCoin wallet. This may be the future of money in the age of the Internet of Everything.

Every culture and country needs a currency – something to act as a centrally accepted means of exchange, and the same is true in the centerless world of the Internet of Everything. A growing trend towards using virtual currencies is emerging in parallel with the developments in technology, people and processes that the IoE represents.

Most prominent currently is BitCoin, a form of virtual money that, despite a rocky start, continues to endure, with merchants around the world – from Subway sandwich franchises through to airlines and law firms, willing to accept it. The important distinction to make, however, is that BitCoin is not simply a new and improved channel for transferring existing currency, the way a credit card is. It is virtual, created from complicated computer codes and held in a virtual wallet. It exists and is made safe through distributed computing. It is owned by no government and regulated by no central body.

In terms of the Internet of Everything, virtual currencies such as BitCoin allow for a wider range of actions that traditional banks find too costly to touch, and who make too expensive to use, such as micro-transactions. These small purchases may be the equivalent of a couple of cents, and would allow consumers, or their IoE-enabled possessions, to pay a small fee for to access a single news story on a news website, for example, removing the need for banner ads and other old-school monetization techniques, and allowing a greater sense of pay-as-you-go-only-for-what-you-need.

BitCoin is not the only virtual currency out there. In fact there are many dozens, if not hundreds of virtual currencies vying for market attention. BitCoin is only the most famous of the bunch – for now. But together they represent change, and a significant move toward decentralization and virtualization, just as cloud technologies are doing with big data.

The online travel portal Cheapair.com, already accepts payment in BitCoin. As Cheapair.com CEO Jeff Klee explains, one of the main reasons for doing so was customer demand.

The idea to accept BitCoin originally came from a customer,” Klee says. “One of our travel advisors got the request and began asking around about it. I heard about it and got very intrigued by the idea so I started looking into it. I soon realized that Bitcoin would actually be pretty easy and very feasible to accept.”

Klee points out that as a currency BitCoin offers everything needed to manage a transaction. “From a purely practical standpoint, it almost doesn’t make sense for a company NOT to take BitCoin. There are third party processors out there who make it very easy to do (we use Coinbase), and they will allow merchants to accept as much or as little of the volatility risk (or reward) as they want. If there are a certain number of customers who prefer to pay in BitCoin, why would any company not want to accommodate them?

On a higher level, Klee recognizes that virtual currencies are driving change, and moving economies out of long-held patterns of ownership by banks and credit card companies, along with the service charges which many merchant recognize as being disproportionate to true transaction costs. “It’s past time for an alternative payment system to challenge the entrenched players,” Klee says, “and I think BitCoin can provide just that.”

It is important to recognize a historical continuance: the forms of money that have been used for the past few millennia emerged for the very same reason as their virtual counterparts are now doing. In earlier centuries where every kingdom had its own form of money, gold was recognized as having universal value, which meant every local money could be assessed against its standard. As the age of global computing now leaves the traditional domain of “hard computers,” and becomes instead a resident of the cloud, accessible by mobile applications of all types, the same type of standard is emerging: a currency whose worth and stability will be based on planet-wide distributed computing power, and whose accessibility and ease of use will be made clearer through unfettered access provided by smart clothes, smart appliances and smart everything.

This is a sponsored post InnovateThink by and Cisco.

logo-innovate-think

By Steve Prentice

About Steve Prentice

Steve Prentice is a project manager, writer, speaker and expert on productivity in the workplace, specifically the juncture where people and technology intersect. He is a senior writer for CloudTweaks.

Find out more
View All Articles

Sorry, comments are closed for this post.

Driving Success: 6 Key Metrics For Every Recurring Revenue Business

Driving Success: 6 Key Metrics For Every Recurring Revenue Business

Recurring Revenue Business Metrics Recurring revenue is the secret sauce behind the explosive growth of powerhouses like Netflix and Uber. Unsurprisingly, recurring revenue is also quickly gaining ground in more traditional industries like healthcare and the automotive business. In fact, nearly half of U.S. businesses have adopted or are planning to adopt a recurring revenue model,…

How Cloud Computing Is Changing The Retail Game

How Cloud Computing Is Changing The Retail Game

Cloud Computing Retail The retail industry is constantly evolving to meet the ever-changing needs of consumers. This transformation is influenced by e-commerce, social networking and the latest technologies. Today’s shoppers expect a connected and interactive consumer experience from start to finish. According to a report by the National Retail Federation, it is a projected that…

The Four C’s – Cloud, Culture, Clash, Change

The Four C’s – Cloud, Culture, Clash, Change

The Cloud, Culture, Clash, Change “I told the new CTO that this cloud stuff was BS. He came charging in with this ‘cloud first policy’ and look what happened. Previously rock solid systems that had worked for years slowed down and had outages as we tried to run them on the cloud. I doubt that…

The Internet of illness

The Internet of illness

The Internet of illness The number of postings about IoT solutions has continued to rise. It is a wave that hasn’t crested yet. I’ve posted several here on CloudTweaks as have a number of other authors. IoT topics from the industrial use, to what IoT is going to change around the world. It got me…

Disaster Recovery – A Thing Of The Past!

Disaster Recovery – A Thing Of The Past!

Disaster Recovery  Ok, ok – I understand most of you are saying disaster recovery (DR) is still a critical aspect of running any type of operations. After all – we need to secure our future operations in case of disaster. Sure – that is still the case but things are changing – fast. There are…

How Successful Businesses Ensure Quality Team Communication

How Successful Businesses Ensure Quality Team Communication

Quality Team Communication  (Sponsored post courtesy of Hubgets) Successful team communication and collaboration are as vital to project and overall business success as the quality of products and services an organization develops. We rely on a host of business tools to ensure appropriate customer interactions, sound product manufacturing, and smooth back-end operations. However, the interpersonal relationships…

Featured Sponsored Articles
How To Develop A Business Continuity Plan Using Internet Performance Management

How To Develop A Business Continuity Plan Using Internet Performance Management

Internet Performance Management Planning CDN Performance Series Provided By Dyn In our previous post, we laid out the problems of business continuity and Internet Performance Management in today’s online environment.  In this article, we will take a look at some of the ways you can use traffic steering capabilities to execute business continuity planning and…

Featured Sponsored Articles
Optimizing Digital Marketing Through Accessibility & Aesthetics

Optimizing Digital Marketing Through Accessibility & Aesthetics

Optimizing Digital Marketing In The Cloud Marketers are constantly looking for better ways to tantalize and engage customers, and there’s no space more competitive than the digital universe. Deliberating over pleasing layouts, effective calls to action, site responsiveness, and much more, digital marketers have more than enough to keep themselves busy without understanding the intricacies…

Featured Sponsored Articles

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor