One reason that enables cryptocurrencies to sustain its upward trend is the fact that it is not only disrupting giant industries but it is also used as a tool to serve niche markets where digital coins can thrive on their own.
According to Entrepreneur, niche marketing allows startups to create a new space where they can introduce a business solution successfully while also giving them the opportunity to be major players in a bigger industry. However, business players often tend to dismiss the rewards that are granted by serving a small market audience.
So while everyone is moving to make the most out of their money from markets where cryptocurrencies have already established a name, people are overlooking the gains of buying low at startup markets that have a big potential with the help of cryptocurrencies.
One niche market that is being revolutionized by cryptocurrencies is the cannabis industry. Because under federal law, the use and sale of cannabis are illegal, cash payments eked out from the business is refused by banks. This, amid fears that the money received will not be valid, especially when the cannabis company with which the bank has made a transaction with is found guilty of violating federal laws. Business Insider reported that this disrupts the ease in making business between cannabis firms and consumers.
This is one of the reasons why PotNetwork Holdings, Inc. (OTCMKTS:POTN), a leader in the manufacture and sale of cannabidiol through its subsidiary, Diamond CBD, Inc., decided to venture into the crypto market.
Although having recently established the Blockchain Crypto Technology Corporation, its crypto business arm, the Florida-based company has already purchased 115 powerful rig machines. This will set the stage for its creation of an alternative coin that will help its CBD consumers buy their CBD products without worrying about a restrictive payment method.
The move is a landmark business strategy for a leading CBD firm. Both business segments of PotNetwork are expected to benefit from this lucrative synergy as Diamond CBD will see a boost in its consumer base with the faster payment method the company will be offering. As for Blockchain Crypto Technology Corp., gaining recognition in the crypto market that will service CBD users will be a minor problem with the popularity Diamond CBD has gained as a reliable CBD manufacturer.
Another niche market the cryptocurrency is invading is the music industry. Hakim Draper, the co-founder of Boogie Shack Music Group, believes the cryptocurrency market has given artists the chance to have their own cryptocurrencies.
But why would a music artist want his own digital coin?
Draper said artists are constrained to coordinate with major labels that are monopolizing the industry. By establishing their own crypto coin, artists may now rely on others’ funding instead of being dependent on traditional producers.
“Artists can raise money, fund tours, and retain more control of their career,” Draper was quoted in Inc. In addition, Draper thinks the modern music industry is allowing more engagement between artists and fans. And cryptocurrency is believed to further boost this relationship up to the next level as artists ask support for their new cryptocurrency.
"We see the opportunity for artists and fans to use cryptocurrency as rewards and to gain further access and interaction across the entire relationship,” he added.
Seeing crypto as a solution to this problem, Boogie Shack has teamed up with blockchain-based Tao Network. Together, they will roll out the to launch the coin, with the XTO symbol, on CCEX.
In fact, Boogie Shack and Tao Network already have a handful of initial artist cryptocurrency offerings in the pipeline but declined to share further information on their identities just yet.
Despite having a small consumer base, niche market players are known to survive the game because of the quality and innovation they bring to their respective industries. With the injection of cryptocurrency, these markets will not lose their appeal and the chances of complementing a bigger industry.