Exploring The Practical Use Of Cryptocurrency

about 1 year ago

Cryptocurrency has been making headlines (both good and bad) for the past few years or so, with the value of popular coins like Bitcoin and Ethereum reaching all-time highs multiple times in a span of less than a decade. But beyond the hype and speculation that we are becoming accustomed to, what are the practical uses of cryptocurrency? Like I mentioned in my previous post about the theoretical aspects of cryptocurrency, this blog post will focus on taking a closer look at how people are using cryptocurrency in their daily lives.

Practical Uses

One of the most obvious practical uses of cryptocurrency is as a form of digital money as this is what it was intended to do right from the beginning. Bitcoin, the first and most well-known cryptocurrency, was created as a decentralized alternative to traditional fiat currencies. With Bitcoin and other coins, it's possible to send and receive money anywhere in the world with an internet connection, with very low transaction fees (with Hive it's zero fees) and without the need for a bank account.

This is particularly useful for people living in countries with unstable currencies or limited access to traditional banking services as it gives them the opportunity to partake in a 'global financial system' and reap its benefits.

Another practical use of cryptocurrency is for online shopping which I hope will one day become a standard in this arena. Many merchants and e-commerce platforms, such as Expedia and Shopify, are accepting Bitcoin and other coins as payment. This allows consumers to seamlessly make purchases without the need for a credit card or bank account, and it also provides an added layer of security and anonymity.

On the other hand, investment and trading are also common practical uses of cryptocurrency. The value of many coins, such as ETH and BNB (despite being down currently), has overall risen dramatically in recent years, making them attractive investments for those investors who believe in the long-term potential of the technology. Additionally, cryptocurrency trading with its volatility has become a popular way for people to make money by buying and selling coins on various online exchanges (e.g. Binance).

On the other side of the spectrum, cryptocurrency is also being used in various industries to improve efficiency and security. For example, blockchain technology, the backbone of most cryptocurrencies, is being used in supply chain management to improve transparency and reduce the risk of fraud. Additionally, blockchain-based smart contracts are being implemented in industries such as real estate and finance to automate complex transactions and reduce the need for intermediaries. Also, blockchain gaming has entered the field unlocking capabilities such as new in game economies which were not available before.

Summary

While cryptocurrency is still a relatively new and rapidly evolving technology, it's clear that it has many practical uses beyond just being a speculative investment. From digital money and online shopping to investment and trading, the potential of cryptocurrency is being explored in a variety of ways.

The backbone of cryptocurrency being blockchain opens up another dimension to its practical use which could be applicable in almost any industry. As the technology and 'its regulations' continue to evolve, we can expect to see some changes in its practical use cases in the future. New ones will emerge, some will take a back seat while others will be at the front row. All in all, cryptocurrency has passed the stage of being vague, it has acquired some structure and practicality.

All images created via Nightcafe Studio.