Crypto is generally perceived as a risky investment, and while there is some truth to that, no one can ignore the utility of digital assets. Bitcoin and other similar cryptocurrencies were created with a purpose in mind; thus, they have different real-world applications. If you’re wondering what you can do with digital currencies, this article is for you.
Perform low-cost cash transfers
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Sending and receiving low-cost payments is one of the most common applications of crypto. The transfers happen very quickly – for instance, someone once sent $99 million LTC in only two and a half minutes, which involved a fee of only $0.40. In the traditional financial system, such a transfer would take several days and require considerable fees. Fortunately, this is not the case when using digital currencies like Bitcoin or Litecoin, making them a great payment option if you want to transfer money internationally. Make sure to check the bitcoin price usd to acquire real-time information regarding this asset.
Crypto is a great way to store value, especially for those living in countries with unstable fiat currency. Using stablecoins allows you to hold onto the monetary value, which can be beneficial, especially during tough times when inflation is high. Put simply, stablecoins are digital currencies tied to a different value, such as the US dollar, maintaining a relatively steady value. Due to this stability, businesses and individuals can make transactions through reliable crypto, allowing them to build wealth despite the challenges faced by the market.
Donate to charities
As more charitable organizations now accept crypto, users find donations to be a fantastic use case for digital assets. Even Vitalik Buterin, the Ethereum founder, donated crypto to support different causes. It’s worth noting that donating crypto may involve different tax implications depending on your location. Thus, we advise consulting a legal expert to understand specific reporting requirements. There are various reasons why NGOs accept crypto donations, such as:
- Tax efficiency. Crypto enables donors to decrease their tax burdens, which ultimately creates more funds for donation.
- Diversification. By accepting digital assets, nonprofits increase the potential for excellent fundraising outcomes, as they have an additional donation stream.
- Increased adoption. Accepting crypto donations brings new opportunities to nonprofits because they reach donors that may not be able to donate otherwise.
Manage your data
Blockchain technology enables ownership of public addresses, which means you get to control your data. This technology has expanded into different areas, including legal records, healthcare, financial transactions and art ownership. Blockchain’s immutability makes it one of the most secure digital methods of dealing with crucial records, as you can transfer them easily and record access without exposing the data.
Send non-cash remittances
Remittance is brought up regularly in crypto discussions, but what is it all about? Put simply, it involves sending cash from one party to another. Usually, a remittance is a payment, but in connection to crypto, it means people get to send money globally. Using traditional payment rails is generally slow and costly, but with crypto, it’s quite the opposite. Thanks to digital currencies, international transfers are cheaper and faster. Plus, they create opportunities for those who wouldn’t otherwise be able to access financial services or face restrictions on international transfers.
Travel the world
The cryptocurrency ecosystem has grown exponentially in the last ten years, opening the door to different possibilities, like traveling the world. Travel agencies now accept Bitcoin as a payment option for car rentals and hotel and flight bookings. This is great news for crypto enthusiasts who want to explore the world and immerse in a new culture. Travelers can even convert their digital assets into local currencies in most large cities worldwide. Now, isn’t that great? Crypto is a driving force towards a cashless society, which has different perks, especially in the context of traveling. For instance, suppose you lose your physical wallet; that could definitely ruin your entire trip. But this is no longer a concern if you use crypto, as your digital money is safely stored in a virtual wallet.
Invest in early-age startups
Since digital token-based fundraising has become a thing, anyone can now invest in early-stage tech startups and provide them with essential seed capital. ICOs and IPOs are methods of fundraising that allow startups to make money by exchanging brand-new tokens with top cryptos like ETH or BTC. The price of the respective token then becomes a proxy that will determine the success or failure of the startup. In the past, only experienced venture capitalists could access these deals. However, thanks to crypto, this has become an opportunity for a larger spectrum of investors. In some instances, digital tokens of profitable ICOs have reached considerable value, and crypto-based fundraising allowed startups to raise more than $12 billion in the last two years.
Get paid to create valuable content
Blogging platforms like Steemit now allow publishers to earn crypto by curating valuable content. This empowers users, as they are financially rewarded for contributing to the platform instead of selling its data to third parties. The Taki social media app is also known for paying content contributors with crypto. Creating crypto content is a great way to make money while doing something you love. As long as you have the right set of skills, you can write persuasive content that educates people and grabs their attention.
Cryptocurrency is here to stay
Even if the market experiences price fluctuations, cryptocurrencies won’t cease to exist. In fact, they will likely keep evolving along with the popularity of blockchain technology and the ascent of Web 3. That’s because millions of people worldwide are contributing to the industry’s development. As a result, making digital payments will likely become the new normal. While it is difficult to predict how long it will take until cryptos reach a significant level of acceptance, one thing is clear: all the emerging use cases will enhance its acceptance. With all the highs and lows, it’s impossible to deny crypto’s benefits to the financial system and the world. Many sectors now enjoy the perks of adopting blockchain, including enhanced transparency, security, and lower costs. However, if you want to invest in crypto, it’s vital to do your research to understand how the market works.