Potential Impact of Cryptocurrency on the Clothing Industry

This article explores the potential impact of cryptocurrency on the clothing industry. It discusses how cryptocurrency can revolutionize the industry by reducing transaction costs, encouraging peer-to-peer transactions, and improving supply chain transparency. The article also covers the challenges and regulations associated with cryptocurrency in the industry.

Running head: UNDERSTANDING THE DIGITAL REVOLUTION 1
Potential impact of Cryptocurrency on the Clothing Industry
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UNDERSTANDING THE DIGITAL REVOLUTION 2
Part one research
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.
Part two brainstorming
Ways in which this technology will disrupt the clothing industry

UNDERSTANDING THE DIGITAL REVOLUTION 3
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.
Part three-Regulations and Ethics
The technology impact from the previous exercise is on the accepting of the payment where the
Cryptocurrency would be used for the transactions.
Volatility
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

UNDERSTANDING THE DIGITAL REVOLUTION 4
cryptocurrencies such as the Bitcoins and Ethereum (King, 2013). The value of the
cryptocurrencies could likely swing wildly up and down.
Rising rivals
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.
Crypto consolidation
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.
Government involvement
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).

UNDERSTANDING THE DIGITAL REVOLUTION 5
Part 4-Distruption
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).
Part 5 video plan
Script
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.
(In the first part of this script it would explain on the Cryptocurrency)
I have heard people talking about the Cryptocurrency technology but what are they?

UNDERSTANDING THE DIGITAL REVOLUTION 6
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.
(Audience are posted a question) Ok wait why would I want to trade Cryptocurrencies?
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.
(The question is possessed to the audience) What are some of the impact of Cryptocurrency to
clothing industry?
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.
Part 6- video

UNDERSTANDING THE DIGITAL REVOLUTION 7
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.
Figure 1: The diagram shows the percent showing how cryptocurrencies used to transact in
clothing industry.

UNDERSTANDING THE DIGITAL REVOLUTION 8
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.

UNDERSTANDING THE DIGITAL REVOLUTION 9
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 of
production 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.