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.

E-Commerce Advances For Savvy Marketers

E-Commerce Advances For Savvy Marketers

Digital Marketing Platforms Advertising and marketing techniques have progressed rapidly in the last decade with both channel focus and the direction of content shifting considerably due primarily to advances in cloud technology. Gartner’s Magic Quadrant for Digital Commerce 2016 singles out a few ecommerce providers who are topping their sector in both ability to execute…

The Lighter Side Of The Cloud – Energy Battle

The Lighter Side Of The Cloud – Energy Battle

By David Fletcher Please feel free to share our comics via social media networks such as Twitter, Facebook, LinkedIn, Instagram, Pinterest. Clear attribution (Twitter example: via@cloudtweaks) to our original comic sources is greatly appreciated.

Recent Articles - Posted by
Cloud Comings and Goings

Cloud Comings and Goings

Cloud Power Amazon Web Services – the giant of cloud computing – is on track to do $10 Billion in revenue this year. Yet, rumors swirl that Apple may take a huge chunk of business away from them and Dropbox has definitely left AWS. Is something wrong at AWS? Wait, Salesforce.com (SFDC) – the granddaddy of…

Digital Transformation: Not Just For Large Enterprises Anymore

Digital Transformation: Not Just For Large Enterprises Anymore

Digital Transformation Digital transformation is the acceleration of business activities, processes, and operational models to fully embrace the changes and opportunities of digital technologies. The concept is not new; we’ve been talking about it in one way or another for decades: paperless office, BYOD, user experience, consumerization of IT – all of these were stepping…

Connecting the Digital Dots with the Internet of Things

Connecting the Digital Dots with the Internet of Things

The IoT Explosion In The Cross-Industry Category Gartner estimates that 6.4 billion Internet of Things (IoT) devices will be in use in 2016, nearly a third more than last year, and with attentive patrons such as Samsung, recently committing to invest $1.2 billion into IoT research in the US over four years, we can happily…

4 Industries Being Transformed By The Internet of Things

4 Industries Being Transformed By The Internet of Things

Compelling IoT Industries Every year, more and more media organizations race to predict the trends that will come to shape the online landscape over the next twelve months. Many of these are wild and outlandish and should be consumed with a pinch of salt, yet others stand out for their sober and well-researched judgements. Online…

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to helping teams win…

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

12 Promising Business Intelligence (BI) Services For Your Company

12 Promising Business Intelligence (BI) Services For Your Company

12 Promising Business Intelligence (BI) Services Business Intelligence (BI) services have recently seen an explosion of innovation and choices for business owners and entrepreneurs. So many choices, in fact, that many companies aren’t sure which business intelligence company to use. To help offer you a solution, we’ve compiled a list of 12 Business Intelligence companies…

Do Small Businesses Need Cloud Storage Service?

Do Small Businesses Need Cloud Storage Service?

Cloud Storage Services Not using cloud storage for your business yet? Cloud storage provides small businesses like yours with several advantages. Start using one now and look forward to the following benefits: Easy back-up of files According to Practicalecommerce, it provides small businesses with a way to back up their documents and files. No need…

Cloud Security: The Top 8 Risks According To ENISA

Cloud Security: The Top 8 Risks According To ENISA

Cloud Security Risks Does security in the cloud ever bother you? It would be weird if it didn’t. Cloud computing has a lot of benefits, but also a lot of risks if done in the wrong way. So what are the most important risks? The European Network Information Security Agency did extensive research on that,…

Digital Marketing Driven by Cloud, Big Data and IoT

Digital Marketing Driven by Cloud, Big Data and IoT

Digital Marketing Successful digital marketing campaigns are being driven largely by trending technologies, specifically the Internet of Things (IoT), Big Data, and The Cloud. These may be used for a huge number of marketing applications, from optimizing the performance of sports teams to improving science and research, even helping to aid law enforcement. Amazon Web…