Like with other uses of currency, cryptocurrencies are used to buy goods and services, or trade them for profit. It works by using a technology called blockchain. Blockchain is a decentralized technology that’s spread across computers, managing and recording transactions.
A major appeal to this technology is the security it offers. It’s also a lucrative alternative for societies that have less stable financial systems in place. You’ve probably heard of Bitcoin (BTC), it’s the most popular cryptocurrency in the world right now. In total, there are currently over 2,200 different cryptocurrencies traded publicly.
Being dubbed the “currency of the future,” it’s no wonder why this currency only continues to grow. It offers plenty of attractive benefits. First, users can enjoy complete anonymity in their transactions. Your identity doesn’t need to be revealed in order to use Bitcoin.
Transactions are secure and handled quickly and efficiently. It offers global accessibility, making it easier to buy or trade goods and services from practically anywhere. With the benefits in mind, check out these five incredible uses for cryptocurrency in this day and age.
Travel
Bitcoin continues to be more widely accepted by retailers and is now more readily used for bigger transactions as well. Travel transactions are just one category. Cheapair.com, one of the more popularly known travel agencies where you can purchase flights, hotels, car rentals and cruises, has been accepting Bitcoin since 2013.
Other travel sites such as Destinia.com, a Spanish travel agency, ABitSky.com, travel geared around continental Europe, and eGifter.com, an online gift card shop that lets you buy bitcoin gift cards for airlines like American Airlines, Delta, and Southwest Airlines, all allow the use of cryptocurrency as payment.
Online Gambling
Since blockchain eliminates the middleman, players can play directly from their ewallet. It makes transactions super quick, since you don’t have to wait for deposits or withdrawals to process. Cryptocurrency offers players other advantages as well.
Using it for online play makes it possible to avoid giving another entity your banking information, which is key in an age where big data leaks happen often. Some banks have tighter restrictions on sending and receiving money to online casinos, and digital currency easily maneuvers through issue with ease. Since cryptocurrency is accepted by many online gambling sites, you can get started right away if you want!
Fundraising
Many startups and nonprofits are now using cryptocurrencies in order to fund their ideas, services and products. Fund-raising websites, like IndieGoGo or Kickstarter, are now turning their eyes to cryptocurrency as a viable way to raise money. But why? Cryptocurrency is easy to track and obtain, making the fund-raising process more seamless. People are donating in cryptocurrency now as well, because of convenience and taxes. Cryptocurrency donations are treated like stock donations because the IRS views cryptocurrency donations as property. By donating in cryptocurrency, donors are also able to donate significantly more.
Wealth Management
Wealth management is another exciting way cryptocurrency can be used, especially for investment- minded individuals. Companies like SwissBorg, a company that created its own tokens for investment solutions, provide investors with great opportunities to manage their wealth without boundaries or restrictions. According to the SwissBorg website, "Whether you are an individual, a DAO [decentralized autonomous organization] or a financial expert, SwissBorg is a democratic ecosystem where you can manage a portfolio of crypto assets."
Smart Contracts
A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. They allow credible transactions to take place, without the need for third parties. There’s no need to pay an intermediary, saving you both time and money. Through smart contracts, you can exchange money, property, or anything of value in a clear, conflict-free way without the need of a middleman.
This is thanks to blockchain’s decentralized system, since it exists between all permitted parties. Smart contracts not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations.