Discuss about the Potential Impact of Cryptocurrency on Clothing Industry.
Cryptocurrency are the digital currencies which are utilized to buy real things, and they are favored for the way they could speed up the transfer of the money through cutting down the middlemen such as the banks (Agrawal, Sharma & Kumar, 2018). Cryptocurrency has been a disruptive innovation technology which has the potential to revolutionalize on the current structure and change the clothing industry on the way it operates. The Bitcoin is the most popular form of the Cryptocurrency which has enabled the digital transactions between the two parties without the need for the intermediary (Agrawal, Sharma & Kumar, 2018). Each transaction which is digitally recorded in the blocks is usually connected to each other using hastags and the linear chronological sequence to these blocks forms of the blockchain (Bjordal & Opdahl, 2017). Therefore, transaction that is digitally recorded to keeping the security at the top notch level. Though the information is usually not recorded the data of the parties which are participating in the exchange is not revealed (Bjordal & Opdahl, 2017). The money can only be tracked when it has been converted into cash. When it comes to the future of the money, there is growing consensus which cryptocurrencies usually set to play major role. It is important to note that Cryptocurrency market is more complex (Francisco & Swanson, 2018). The good things with this technology are not controlled by one government, but rather they are supervised by the global network of individuals who maintains computers which are on the software. Cryptocurrencies have led to the emergence of the new markets (Francisco & Swanson, 2018). Through currencies such as the Bitcoin and Ethereum they have opened gates for the new kind of the market that unlike the current money market is controlled by no single individual.
Cryptocurrency has led to the creation of the multibrand loyalty program (Gandal & Halaburda, 2016). On the traditional loyalty programs in the clothing industry many organizations had previously swallowed the costs of the discounts they pass to the customers (Gandal & Halaburda, 2016). Since the Cryptocurrency transactions are usually cheaper to process as compared to the credit card transactions, a loyalty program which uses the Cryptocurrency would be free to organizations which are still passing the savings to the customers (Surowiecki, 2011).
Cryptocurrency would lead to the politicization of the money in the clothing industry: previously the monetary transactions were enabled by the central bank now through evolution of this technology the scenario has changed (Surowiecki, 2011).
Cryptocurrency who have a significant role in the clothing industry especially when it comes to the accepting of the payment for the goods (Hayes, 2017). The advantages of these transactions are numerable. They would be peer to peer nature when the bitcoins are used and there financial intermediaries could not delay or interrupt the transactions and they are associated with the low to zero fees. This is advantage on the part of the customers within this industry.
The technology impact from the previous exercise is on the accepting of the payment where the Cryptocurrency would be used for the transactions.
This could have an effect on the transactions which are made across this industry (Francisco & Swanson, 2018). The volatility has characterized on the market valuation of the top cryptocurrencies such as the Bitcoins and Ethereum (King, 2013). The value of the cryptocurrencies could likely swing wildly up and down.
There are numerous cryptocurrencies which have emerged over the years. There has been intense rivalry between the established players as well as fresh upstarts in the crypto marketplace (Narayanan, Bonneau, Felten, Miller & Goldfeder, 2016). Expensive transactions cots as well as networks slowdowns have also plagued on many cryptocurrencies.
As much as many cryptocurrencies would enter the clothing industry, there are few which would provide innovation and differentiation to thriving and challenging on the popular incumbents (Scardovi, 2016). There is likely fail or culled from the herd through increase in the fierce competition.
The creation to the future as well as the other derivative markets which are relating to the Cryptocurrency means the regulators in the government would be supervising on some aspects of the market for the first time ever (King, 2013). There are advisor cautions which are issued by the government to the clothing industry about the risks which are associated with transactions in the cryptocurrencies (King, 2013). There are also regulations which have also legislation which are being implemented to limit on how the conventional bank interact with the cryptocurrencies and they are prohibited on some of the organization from providing settlement services for the Cryptocurrency transactions (Vigna & Casey, 2016).
The process which would change due to the chosen impact is on the supply chain. There would be long opportunities to greatly improve on the consumer trust as well as transparency (Narayanan, Bonneau, Felten, Miller & Goldfeder, 2016). As the shoppers in the clothing industry seek more goods which are socially responsible, the Cryptocurrency would offer the consumers accessibility and infallible insights into the entire history of the products from where they were made and stored and how they were delivered to whom who had owned them previously through the use of the block chain technology (King, 2013. There would also be tremendous accountability when it comes to this technology. It would enable the clothing industry business brand to be in touch with their suppliers (King, 2013). This technology in the ethical aspect has to do with the cryptocurrencies where the business models would entails curating a market place of the social impact focused organization which would reward their customers with the cash back in form of the digital currency any time they shop from the clothing industry (Vitt, 2017).
This script would be done as a story text. There is discussion of the Cryptocurrency technology and the impact it would have within the clothing industry.
Cryptocurrencies are tradable electronic tokens which are discovered or perhaps created through the process regarded as mining, which we think of as the search to a specific and complex mathematical key or code. They are in effect new kind of money. Cryptocurrencies and the transactions usually facilitate and are recorded within the unshakable distributed ledger regarded as blockchain.
What are some examples of cryptocurrencies? More often there are many cryptocurrencies but the most popular are Ethereum and Bitcoins. These currencies are new and exciting asset classes which are largely unrelated to the traditional investments.
Cryptocurrencies are important to the organizations in the clothing industry in that they have lower transaction costs, no delay in finalizing the transactions which would be essential to the consumers. Thus, using these currencies would be beneficial to the customers since they have lower transaction to zero as compared to the other form of currencies to transact.
In the clothing industry this technology would transform on the way they carry business. It would greatly improve on the consumers trust along with the transparency. It would also bring the advantage of low transaction cost on the part on the consumers. Moreover encourages peer to peer transactions which scrap away the financial intermediaries and this does cause interruption of the transactions and typically it is associated to the fees that are low.
Within this video it would examine on various aspects on cryptocurrency which have been covered within this report (Surowiecki, 2011). The major aspect discussed is on one brainstormed idea.
The brainstormed idea that would be discussed is on the effect of the Cryptocurrency on the payments (Scardovi, 2016). Cryptocurrency has been significantly been utilized in carrying out transaction especially in the payment of the goods in the clothing industry. This is significant effect it has brought within this industry which would have huge benefits on the part of the consumers who are buying goods especially on the reduced transaction costs and the reduced delay where it has encouraged peer to peer transfers.
In the diagram above shows the percent of each cryptocurrencies which are used to carry out transaction in the clothing industry (Scardovi, 2016). This latest portion has been occupied by the Bitcoins which many organizations have been utilizing. These organizations are using Bitcoins mostly to transact due to the nature of the currency such as peer to peer nature.
The blockchain has the potential to revolutionize on this process and at the same time reduce on the costs, through removing on the transactional intermediaries, implementing on the smart contracts along with creating a distributed network for the supply chain.
References
Agrawal, T. K., Sharma, A., & Kumar, V. (2018). Blockchain-Based Secured Traceability System for Textile and Clothing Supply Chain. In Artificial Intelligence for Fashion Industry in the Big Data Era (pp. 197-208). Springer, Singapore.
Bjordal, A., & Opdahl, E. (2017). Portfolio optimization in the cryptocurrency market: an evaluation of the performance of momentum strategies in the cryptocurrency market and cryptocurrency’s place in an optimized investment portfolio(Master’s thesis).
Francisco, K., & Swanson, D. (2018). The Supply Chain Has No Clothes: Technology Adoption of Blockchain for Supply Chain Transparency. Logistics, 2(1), 2.
Gandal, N., & Halaburda, H. (2016). Can we predict the winner in a market with network effects? Competition in cryptocurrency market. Games, 7(3), 16.
Hayes, A. S. (2017). Cryptocurrency value formation: An empirical study leading to a cost ofproduction model for valuing bitcoin. Telematics and Informatics, 34(7), 1308-1321.
King, S. (2013). Primecoin: Cryptocurrency with prime number proof-of-work. July 7th.
Narayanan, A., Bonneau, J., Felten, E., Miller, A., & Goldfeder, S. (2016). Bitcoin and Cryptocurrency Technologies: A Comprehensive Introduction. Princeton University Press.
Scardovi, C. (2016). Fin Tech Innovation and the Disruption of the Global Financial System. In Restructuring and Innovation in Banking (pp. 21-49). Springer, Cham.
Surowiecki, J. (2011). Cryptocurrency. Technology review, 114(5), 106-107.
Vigna, P., & Casey, M. J. (2016). The age of cryptocurrency: how bitcoin and the blockchain are challenging the global economic order. Macmillan.
Vitt, D. (2017). Estimating the Impact of E-Commerce on Retail Exit and Entry Using Google Trends.
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