Potential Impact of Cryptocurrency on the Clothing 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