Will Cryptocurrency Change the Freelance Marketplace Landscape?

Zac Johnson
Thu, 30 Nov 2017 18:05:22 +0000

If you do any type of online marketing or content creation, you've likely hired freelance writers or designers through one of the many online marketplaces. The benefit of using such marketplaces is that they serve as a middleman between clients and freelancers.

As new payment methods and currencies come into play, these online marketplaces will need to adapt. We saw this same process many years ago when credit cards were no longer the preferred payment method and PayPal quickly became the online transaction method of choice. Now PayPal is accepted pretty much everywhere.

Today, with cryptocurrency on the rise and Bitcoin hitting record highs in value every day, it's only a matter of time before these digital currencies enter common usage.

Some companies are early adopters

There are some platforms and online businesses that are already accepting cryptocurrencies as a form of payment. One such platform is CanYa, a cryptocurrency-based autonomous marketplace for peer-to-peer services. CanYa has created its own currency; users who purchase CanYa's digital currency then have the ability to withdraw it through various financial methods of their choosing.

The benefit here is that there is a single bridge between all currencies on one platform. With such a transaction process in place, this removes the middleman and also eliminates the volatility that many have seen with the likes of Bitcoin. This method of eliminating volatile swings in digital currency value is done through the use of hedged escrow contracts in association with the platform's own virtual currency.

Another example of digital currency making its way into the traditional and non-online world is through solutions like SelfKey, which has made it possible to buy passports, residency, and even financial services through its own digital identity wallet and marketplace. The goal with such a solution in place isn’t just to have another marketplace to connect users and buyers; it’s also a play to allow users to connect with all of their existing bank accounts and monthly billings, and to take advantage of what blockchain has to offer, which is typically done through an e-wallet.

The common theme among online marketplaces and e-wallet providers isn’t that they collect digital payments for transactions, but rather how they are focusing on new ways to serve individuals, businesses, and organizations, while also building out their own businesses, marketplaces, and platforms in the process. The more connections and implementations these companies build into their own platforms, the sooner we will start seeing the widescale acceptance of cryptocurrency.

RELATED: Digital Currencies, Blockchain, and the Future of Business Transactions

A $2 trillion industry waiting to be tapped

Just think back to when ATM cards first came out. No one liked the idea of walking up a to machine and withdrawing money, but within a few years it was commonplace and the greatest thing ever. Will the world of opportunities that lie within cryptocurrency have the same result?

With the industry of cryptocurrency currently being valued at more than $2 trillion dollars, it's only a matter of time before more businesses jump onto the crypto bandwagon. It's now mostly a question of who will take action first and what regulations will come into play.

Online freelance marketplaces are thriving in the age of the sharing economy. A good example of this can be seen through Ikea's recent purchase of TaskRabbit, an online marketplace for homeowners to connect with contractors and "taskers" from the comfort of their home. Ikea saw the opportunity and potential in online marketplaces, and once a major player decides to also implement cryptocurrency into its platform, we will likely see such payment methods rapidly scale in usage.

Online marketplaces, cryptocurrency, and what’s to come

It seems that online freelance marketplaces are only going to grow in the near future. It's a business model that provides value to both sides—not just saving money for businesses, but also offering opportunity to those looking to make a living as freelancers.

Will 2018 be the year where cryptocurrency becomes a mainstream transaction method? Only time will tell, but it's a trend that seems likely to grow.