These days, it’s quite hard to escape all the crypto media coverage. Whether it is the latest news on the various Bitcoin ETFs or predictions about the future price of ether, cryptocurrency is seemingly more familiar to us now than ever before.
But what does this mean for the future of finance in New York? Many of the developments taking place within the crypto world in the United States centre around the Big Apple so we can expect some sort of impact from crypto, and even in ways that you might not have imagined.
As cryptocurrency becomes more popular in New York, we can expect the financial sector to become a lot more energy-intensive. This is because Bitcoin is based on a proof-of-work consensus, which means that creating new tokens requires computers to complete a complicated mathematical puzzle. This, in turn, uses a lot of energy. So much so that Bitcoin has been found to eat up as much electricity as entire countries.
This means that New York-based crypto miners will be using a lot of energy in the coming years to keep the market going and this could become an issue if left unchecked. Some regions in the world have taken steps to crack down on crypto mining and it is left to be seen if New York will take the same approach or support crypto mining activities instead.
The gambling landscape in New York has always been a complicated one as while certain land-based casinos and state-run lotteries exist, online betting is still a bit limited in the state. However, the future of betting in New York is on track to look a lot different thanks to cryptocurrency.
Over the last few years, crypto casinos have sprung up to capitalize on the popularity of digital currencies. If you look at some of the ones reviewed in valuewalk.com, you’ll see that many only take crypto. As New Yorkers turn to online sites to have their gambling needs met, more might start using crypto.
New York is one of the great financial centers of the world and cryptocurrency has quickly found its way into the mix. 2024 started off with the SEC approving several Bitcoin ETFs and several other cryptos are predicted to be getting their own ETFs later this year. This level of accessibility and prominence means that finance in New York moving forward will not be exclusively centred around ‘traditional’ assets but digital ones as well.
Investors will likely watch the crypto markets the same way that they do the NYSE and more businesses catering to this demand can be expected in the state.
With the popularity of cryptocurrency comes more avenues to spend said currency and New York will be seeing more of these. There are already companies in the US like AT&T and Microsoft that allow users to pay for goods and services using cryptocurrency. As more time passes and crypto use is more common, New Yorkers will likely be given more avenues to spend their tokens, whether this is with nationwide brands or local businesses.
We can also expect to see an increase in the number of crypto ATMs in the state. There are already dozens of such ATMs throughout New York but as the demand for cryptocurrency goes up, so will the prevalence of such ATMs. The good news is that anyone looking to spend their cryptocurrency in New York will have no shortage of ATMs to buy crypto from or merchants that will accept it for goods and services.