Written by 3:59 pm Cryptocurrency

5 Real Use Cases of Cryptocurrency

Cryptocurrency and blockchain technology is one of the major advancements witnessed in recent times. Digital currency is almost taking the place of physical money due to its advantages.

Today, the crypto market is worth over a trillion US dollars. Crypto has gained mass adoption while its popularity has increased despite its ups and downs. The number one cryptocurrency, Bitcoin, has become a legal tender in El Salvador (2021) and the Central African Republic (2022). The volume of Cryptocurrency holders continues to grow because, unlike fiat cash, it’s accessible to everyone. Taking Bitcoin as an example, you can easily buy bitcoin with gift cards.

Although Bitcoin, Ethereum, and other cryptocurrencies have enjoyed huge success, many still don’t know about cryptocurrency.

In this post, we’ll learn about cryptocurrencies and their real use cases. Those who have been in the dark will see the opportunities that abound in cryptocurrency.

What is Cryptocurrency?

Cryptocurrency is a digitally encrypted, decentralized currency that is not linked to or regulated by any government or central bank.

It is based on blockchain technology, which is a distributed ledger framework. Bitcoin is the first cryptocurrency created which has led to the creation of others alike known as altcoins. It was created by an individual with the pseudonym Satoshi Nakamoto as a solution to the global financial crisis of 2008.

Cryptos are categorized as virtual or digital currencies. They were originally developed to provide an alternative mode of payment for online transactions.

Cryptocurrencies are highly volatile which makes it very risky to invest. This is one of the reasons many nations of the world are yet to adopt it.

5 Use Cases of Cryptocurrency

Here are the major reasons many people today own cryptocurrency. If your question has been about what you can do with cryptocurrency, then you need to read this.

  1. Low-Cost Money Transfers

One of the biggest advantages of bitcoin is that, compared to other electronic payment systems, it has a very low transaction cost. Bitcoin’s transaction fee is not nearly as costly as the fees on money transfers brokered by banks, credit cards, and commercial software.

Bitcoin is used by immigrants to send money home to their loved ones at a low cost. This is one of the main reasons countries like El Salvador & the Central African Republic turned to Bitcoin for their citizens. BTC allows immigrants to send cheap, practically-instant remissions.

  1. An Alternative Store of Wealth

Cryptocurrencies such as bitcoin can be used as a store of wealth just like your physical money. Cryptocurrencies are stored in wallets that cannot be accessed by anyone else.

While your bank accounts and assets could be frozen, that cannot be said of crypto in your wallet because only the individual with the private keys to the digital wallet can have access to it.

You can buy crypto assets to hold for a short or long-term basis. If you decide to trade your crypto asset then you’ll need a place that meets your requirement.

Prestmit Cryptocurrency1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prestmit is one of the best digital exchange platform to trade cryptocurrency

  1. Make Private Transactions

Many prefer to make transactions today with cryptocurrency as it cannot be traced by anyone. Cryptocurrency enables users to make anonymous financial transactions.

That means individuals can make money transfers without having to explain to a bank why they are sending a large sum of money, what the sources of the funds are, and to whom they are sending it, which can delay the transaction and involve unnecessary bureaucratic processes.

  1. Travel the World & Beyond

Cryptocurrency has grown since it was officially launched in 2009. Digital currencies are accepted as payment for travel. Top travel agents accept Bitcoin as a payment method to book flights, car rentals, and hotels.

The growth of the bitcoin ATM market also means travellers are now able to convert their cryptocurrency into local currency in most major cities around the world. If you’re not the type that doesn’t want to move around with physical money, then this should be a good option for you.

Crypto assets such as BTC, DOGE, ETH, and so on are available all over the world. You can sell Bitcoin in Nigeria and other top crypto assets on your visit. This is how far crypto has really grown.

  1. Payment of Goods & Services

Bitcoin and other crypto assets like dogecoin are being used for payment of goods and services both online and physically. Tesla, NBA’s Mavericks, and many other companies now accept dogecoin for goods & services.

With bitcoin, you can buy luxurious cars like Lamborghini while Elon Musk’s Tesla will soon accept BTC for its electric-driven rides. You can also buy a range of other luxury goods such as art, fine wines, and real estate with cryptocurrency.

You’ll need to get the latest bitcoin news in Nigeria if you really want to make use of cryptocurrency. Crypto traders whether beginners or veterans need to be updated so as not to miss out on these enormous opportunities.

Conclusion

Cryptocurrency has several real-world use cases that make it one to own by many people in the world today. Its real-world use cases are also the reason it is seen as the future of money.

Cryptocurrency investment is the riskiest form of investment. If you must invest in it, make sure you put what you can afford to lose as return on investment is not guaranteed. Also, note that this article is not for financial advice but for educational purposes.

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