Austria is renowned as one of the most advanced manufacturing economies of Europe. The manufacturing industry accounts for about 30 percent of Austria’s nominal GDP and employs approximately 12 percent of all employees. Visit The Official Bitcoin Circuit Site for more info about bitcoin mining.
On the influence and effect of bitcoin and blockchain technology on the manufacturing sector, a report published by a Vienna-based analyst firm, VIBE, revealed that blockchain technology has the potential to reshape the manufacturing industry in Austria.
6 ways bitcoin affects the manufacturing industry of Austria
1. Bitcoin has made financial transactions more efficient, cost-effective, and fast.
The manufacturing industry is capital intensive and often deals with cross-border transactions, including the time delay in foreign exchange rate fluctuations across different currencies that can be avoided by using bitcoin as a virtual currency that cannot be hacked or manipulated by any third party.
2. Improve supply chain management using blockchain
It can be embedded in a QR code on a product and scanned by a smartphone, which will then link to all the information about that specific product’s journey from raw material up to its final place of purchase or use.
Information such as when and where the raw materials were mined or manufactured and what processes were involved could be added to the blockchain.
3. Disrupting the manufacturing sector by the digitalization of craftsmanship
A Swiss company called Ambrosus is leading this revolution with a mission to radically improve global supply chains through the implementation of intelligent contracts, secured data storage, and digital assets.
4. Automated purchase transaction through bitcoin
The manufacturing sector experiences a lot of problems in terms of the time it takes for a client to pay its invoices, and this can be cut down by 30% to 50 % of the time required by cryptocurrencies such as bitcoin, which is accepted globally.
5. Manufacturers look forward to adopting bitcoin
The manufacturing sector of Austria is looking forward to adopting virtual currencies in the future because it can radically change the way transactions are done globally.
Manufacturers have a favorable view of cryptocurrencies. Several companies have entered this domain, but it is still infant, requiring more awareness and regulation.
6. Reduce payment transaction costs by using blockchain technology
Blockchain can eliminate the need for any third party or intermediary to complete a transaction, which will reduce the cost of doing business globally by reducing transactional costs between manufacturers, suppliers, and customers.
Blockchain works on distributed ledger technology where every record is shared between everyone in the network, which reduces the need for any additional verification from a third party.
5 negative effects of bitcoin on the manufacturing industry of Austria
1. Financial institutions in Europe are still confused with bitcoin regulation
The European Central Bank (ECB) has not yet recognized virtual currencies like bitcoins as official currencies; the ECB thinks they don’t fulfill all the three main criteria: durability, no-counterfeit ability, and acceptance.
But there’s something that the ECB cannot deny is its popularity among millennials, and they are looking forward to investing in them even though there’s a lack of awareness.
2. The volatility of virtual currencies like bitcoin
There is a considerable fluctuation in bitcoin price, which can hurt manufacturers’ business because it might not generate profit if the value decreases after completing a transaction.
3. It has no legal support at present
Austria hasn’t taken any official stand and recognized bitcoin as a legal tender, but an Austrian company has started mining bitcoin, which indicates its future potential.
4. Customers are not yet ready to adopt virtual currencies
The purchasing power of the local people in Austria is less, and they prefer to hold on to their traditional currencies such as euros or dollars rather than investing in bitcoin.
5. The tax policies are not defined
Austria hasn’t taken any stand on investors’ tax liabilities who trade in virtual currencies. Still, its finance minister has announced that there will be a detailed investigation on the subject to make sure that they are doing everything according to the existing laws.
Conclusion:
The manufacturing sector of Austria is looking forward to adopting cryptocurrencies in the future because it can potentially change the way business is done globally. Therefore, manufacturers have a favorable view of cryptocurrencies.
However, there is still a lack of awareness among the general public about virtual currencies like bitcoin, which needs to be taken care of to facilitate their use in daily transactions.
