What are the uses of cryptocurrency in the real world?
Are you finding it hard to see the relevant uses of cryptocurrency? Despite its growing popularity, people still don’t see what the fuss is about. After reading this, though, you’ll see just how much this digital asset is changing the world!
For those who aren’t aware of cryptos, we’ll start by talking briefly about how it works. Then, we’ll go through the ways cryptocurrency applies to various fields. Stick around, and you might find that cryptos are sparking changes that apply to you.
It’s time you understand that cryptocurrency has gone beyond being a mere fad. Every day, it spreads further into more facets of our daily lives. In response, you must learn more so you can make cryptocurrency work for yours!
How does blockchain technology work?
When you hear crypto, bitcoin probably comes to mind. It’s the first cryptocurrency in the world. To understand the uses of cryptocurrency, we must start by talking about bitcoin first.
Bitcoin or BTC came out in 2009. This peer-to-peer virtual currency’s goal is decentralized finance (DeFi). An unknown entity by the name of Satoshi Nakamoto released the concept.
In other words, it wanted a financial institution that did not need a central authority. This means no central banks or other financial institutions. Just a network run by volunteers.
These people are known as miners. They confirm bitcoin transactions using their computers. Each one is protected by encryption. Only a specific code can verify each one.
It’s up to the miners to figure out this “winning solution.” This means their machines have to perform thousands of calculations! It’s a race to figure it out before others do.
Once a winner comes out, a new block is added to the blockchain. Then, they earn proof-of-work and a block reward. The latter comes in the form of more bitcoin!
A decentralized public ledger keeps track of all these transactions. However, you may only see the sender’s and the recipient’s bitcoin addresses and the amount transferred.
Bitcoin is free, open-source software. This enabled more people to upgrade bitcoin. Some improved its existing features. Others expanded what bitcoin can do.
As a result, we now have numerous other cryptos or altcoins. While going through the uses of cryptocurrency, we’ll explore these as well.
Cheaper money transfers
People support cryptocurrency not just because it’s a profitable investment. Many of them want a better way to do finance around the world. The current system has lots of problems.
There are always big corporations or governments looking over your transactions. Then, they charge people whenever they perform a money transfer.
If you’re paying money via credit card, you pay for transaction fees. Sending money overseas costs even more! Leave money in your bank account, and inflation eats away at its value.
Fortunately, this is where cryptocurrency can shine. It can reduce transaction costs and durations. This is why we see this practice more often nowadays.
Easier investments
You probably know about other investment options available. These may include stocks, bonds, precious metals, and real estate. However, two reasons keep lots of people from investing.
First, you need to spend a lot on your first shares. You can’t break it up into smaller and cheaper portions. Second, it takes a lot of steps and money to buy some.
Fortunately, one of the uses of cryptocurrency is tokenization. You can make a crypto for these assets. In turn, they’ll be more affordable and more accessible for investors!
Hedging against inflation
Speaking of money, let’s talk about inflation. At the time of writing, the pandemic is still ongoing. Right now, it’s causing prices to spike across the globe.
Also, it’s shrinking the value of several asset classes. For example, stock market prices continue to move up and down wildly. Gold prices also dropped because of COVID-19.
Meanwhile, the crypto market continues its boom! Bitcoin and the altcoin are still going up in value at the time of writing. It’s proving to be a better store of value right now.
Helping artists
Now, let’s turn to the uses of cryptocurrency outside of financial services. Believe it or not, it can help artists make a living from their craft. And it’s all thanks to non-fungible tokens or NFTs!
These are pieces of digital art with ownership recorded on a blockchain. As a result, it becomes one-of-a-kind despite numerous copies out there. It applies to numerous art forms too.
Soon, we may see a movie sold as an NFT. Anthony Hopkins’ upcoming film “Zero Contact” will come out in this format. Also, Filipino artist Mark Redito released this new album as an NFT.
Play-to-earn online games
Yes, you read that right! Cryptocurrency lets gamers earn money while playing. It’s also made possible by NFTs. It appears as the items, characters, and other stuff in certain video games.
Players pick these up while playing. Each one is worth a certain value of crypto. After getting some, the gamer may give up the items for that amount.
This is how the gaming crypto called Enjin (ENJ) works. Yet, there are other tokens out there that let people earn while playing. Read this other article for more details.
Buying stuff!
Let’s not forget one of the most important uses of cryptocurrency. Nowadays, you can buy lots of things with bitcoin. That’s because more stores are accepting bitcoin as payment.
You can buy your next meal or book your next flight with bitcoin. Also, some credit card companies like Visa now have a plastic swiper with bitcoin rewards.
What’s more, many ATMs are now accepting cryptocurrencies. You can use them to buy bitcoin and other cryptos. Some even let you withdraw them as paper bills!
Bitcoin and cryptos around the world
“#RippleNet connected us to financial institutions in Thailand, Philippines and Sri Lanka so we could open these payment corridors quickly. This keeps our integration and operational costs low.”- @cross_enf Business Development Manager, Camille Jeong https://t.co/e3UzBDAXmm
— Ripple (@Ripple) April 8, 2020
Are you still not convinced? Let us show you the uses of cryptocurrency worldwide. See how it’s helping the following countries in various ways:
- The United States – For sure, bitcoin is well-known across the US. But did you know that it may help a city recover from COVID-19? Miami Mayor Francis Suarez gladly announced the launch of MiamiCoin. He said it could help his city build roads while letting other people profit too.
- The Philippines – SBI Remit will help Filipinos send and receive payments overseas. The service will use RippleNet with XRP as the bridge currency. It will convert money sent into XRP and then turn it back to regular money when it gets to the recipient.
- Ethiopia – Cardano (ADA) is a cryptocurrency that will help this country with education. Specifically, it will help the country monitor student performance.
- El Salvador – This is the first country that accepted bitcoin as real money. President Bukele said it would help his people send money easier. Also, the country is building a bitcoin mining facility at the time of writing. It gets power from volcanoes!
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Final thoughts
It’s causing various countries to make digital currencies. This means you’ll probably be carrying a digital wallet more often! Do you need more proof of the uses of cryptocurrency?
This will likely happen within a few years. In response, you should prepare for these changes. Learn more about how cryptocurrency works so you can make it work for you!
Understand terms such as distributed ledgers and smart contracts. Start by reading other crypto articles from Inquirer USA. Explore its possibilities further!
Learn more about the real-life uses of cryptocurrency
Who created cryptocurrency?
Satoshi Nakamoto made the first one. It’s bitcoin (BTC), the most popular and most expensive crypto in the world. Still, we don’t know who he truly is.
Why do we need cryptocurrency?
It makes online payments easier and faster. What’s more, it improves various fields outside finance. These include education, art, and even gaming.
Who uses cryptocurrency the most?
Japan is the top cryptocurrency user in the world. It’s even called the “hub of cryptocurrency trading in Asia.” The United States and then Nigeria follow it.
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