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

Steve Prentice
Follow us

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.
Steve Prentice
Follow us

Sorry, comments are closed for this post.

Recent

How M2M Differs From IoT Internet of Things

How M2M Differs From IoT Internet of Things

What Is M2M Machine To Machine? When it comes to communications between machines, the terms Machine to Machine (M2M) and the Internet of Things (IoT) are seemingly similar to each other. In fact, there is a very strong connection between both terms which is why they are often used as the same. However, that is…

Cloud Infographic – Top Vulnerable Applications

Cloud Infographic – Top Vulnerable Applications

Top Vulnerable Applications  As you use the Internet on a daily basis, you probably come across cyber security topics, but rarely glance at them twice. After all, cyber security threats don’t concern you, right? Well, that’s not exactly true. Cyber attacks are more widespread than you can imagine and they may be targeting your devices as…

The Lighter Side Of The Cloud – Whatever Happened To Alone Time?

The Lighter Side Of The Cloud – Whatever Happened To Alone Time?

By David Fletcher Are you looking to supercharge your Newsletter, Powerpoint presentation, Social media campaign or Website? Our universally recognized tech related comics can help you. Contact us for information on our commercial licensing rates.  About Latest Posts Follow usSteve PrenticeSteve Prentice is a project manager, writer, speaker and expert on productivity in the workplace,…

MOST RECENT - Posted by

Popular Archives

5 Considerations You Need To Review Before Investing In Data Analytics

5 Considerations You Need To Review Before Investing In Data Analytics

Review Before Investing In Data Analytics Big data, when handled properly, can lead to big change. Companies in a wide variety of industries are partnering with data analytics companies to increase operational efficiency and make evidence-based business decisions. From Kraft Foods using business intelligence (BI) to cut customer satisfaction analysis time in half, to a…

Cloud Infographic – Guide To Small Business Cloud Computing

Cloud Infographic – Guide To Small Business Cloud Computing

Small Business Cloud Computing Trepidation is inherently attached to anything that involves change and especially if it involves new technologies. SMBs are incredibly vulnerable to this fear and rightfully so. The wrong security breach can incapacitate a small startup for good whereas larger enterprises can reboot their operations due to the financial stability of shareholders. Gordon Tan contributed an…

Sponsors

The Many Hats Of Today’s IT Managers

The Many Hats Of Today’s IT Managers

The Many Hats of IT Managers In years past, the IT department of most large organizations was much like a version of Middle Earth: a mysterious nether world where people who seemed infinitely smarter than the rest of us bustled around, speaking and typing languages that appeared indecipherable, yet, which made our world work. They…

Selling Your Business To Your Employees

Selling Your Business To Your Employees

Mobility For Your Employees It may seem a radical notion, the idea of selling your business to the people who work for you, but this is the era in which we now work. Employees of all levels are all incredibly aware of their options when it comes to mobility and employability. This doesn’t mean that…

Technology Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7 200px-KPMG
Advertising ROI Plans

Established in 2009

CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and 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.

CloudTweaks Comic Library

Advertising