Most people only think of cryptocurrencies as a form of high risk investment or as a Ponzi scheme of sort. And while it can be a high risk investment, there’s no doubt that the yields can also be pretty significant.
However, because many are only interested in their ROI, they have little or no interest in the tech and the solutions they provide or intend to provide. Yet, if they understood this, it would help them make better investment decisions.
Most people tend to panic and exit their favorite cryptos just because of some fear, uncertainty and doubt. If they knew just how valuable the cryptos they invested in are, many would still hold on to the tokens regardless of a falling price or rumors.
It is with that in mind that we have written this article, so that you can see the problems cryptocurrencies are trying to solve, and determine where your cryptoasset falls. In this article, we take a broad look at the various uses of cryptocurrency and how they transcend just returns on investment.
Provides An Avenue To Invest In New, Promising Companies
If you could go back in time, you would invest in Google and Apple, wouldn’t you? Well, while that ship has sailed, you now have a new opportunity to get in on the ground floor of some amazing tech startups and companies.
Thanks to the available of token sales and initial coin offerings (ICOs), you can very easily invest in some of these companies for very cheap. Many new startups are actively launching their own ICOs as a means of generating the startup funding that they need to create their tech products and services.
Investors pay for these tokens using fiat currencies and get the startup’s token in exchange. These can be held as an investment instrument until the company’s value grows, and they can be traded or exchanged for a tidy sum.
Opportunities like these were only available to top venture capitalists firms and companies before the advent of initial coin offerings. Now, anyone with an internet and some spare cash can invest in tokens from promising startups.
Solves The Privacy And Anonymity Problem
Privacy and anonymity are fast becoming nonexistent. Everything you do can now be tracked thanks to a vast network of platforms, connected devices and databases. Your transactions are often handled by banks and financial institutions who have a need to know you.
As a result, nothing you do that involves a third party is truly private or anonymous. Thankfully, some cryptocurrencies like PIVX (PIVX), ZCash (ZEC) and Monero (XMR) are trying to solve this problem, particularly when it comes to financial transactions.
Transactions made on these platforms are truly private and anonymous. That means no one can tell who sent what to whom on these platforms if the senders and receivers don’t provide that information.
With these technologies, sending funds to wherever you want without worrying about interference from financial institutions and any form of scrutiny is possible.
This completely eliminates the need for explanations, payment delays and other issues that arise when you want to send huge sums of money on traditional financial institutions’ networks.
Lowers The Associated Costs Of Financial Transactions
The third best reason is that these transactions cost very little to nothing to execute on these platforms. Even better, the transactions are often completed in seconds, thanks to the use of smart contracts, fast processing speeds and great tech.
For instance, international wire transfers can take anywhere from 3-5 business days, no thanks to third party banks and clearing houses. Worse still, these attract a significant wire transfer fee.
But, using these crypto platforms, transfers can be completed in seconds and cost very little. A good example of this is the transfer of $99 million Litecoins that took only 150 seconds (2.5 minutes), and cost a mere 40 cents in charges. Think about that for a minute.
Traditional charges would have been at least $990,000 if the banks had charged a 1 percent fee, and it would have taken at least 72 hours to clear if it was an international transfer.
Cryptocurrencies like Stellar Lumens (XLM), and Litecoin (LTC) are eliminating all these hurdles and making international money transfers easy and instant.
Combats Censorship Initiatives
Citizen censorship by governments is a real issue. China, North Korea, Iran and to a lesser degree, Russia are leading practitioners of censorship. These countries have laws and tech in place to prevent their citizens from freedom of expression, access to unbiased information and so much more.
In fact, China is known for cracking down on perceived revolutionists on social media. For instance, political dissenters have been known to have their assets frozen and their bank accounts emptied by the government.
This has resulted in a fearful, restricted population that cannot make their voices or grievances heard. Cryptocurrencies like bitcoin and ethereum have provided a means through which individuals can boycott regular banks and store their assets.
Other censorship defiant cryptos have also been created to help people bypass censorship rules in these countries. So, when the government eventually tries to track and freeze assets or funds belonging to an accused political activist, their efforts will be futile.
Rewards For Content
Currently, content creators are being ripped off by shared revenue payment models like Google AdSense. Content creators put out a ton of content, only get paid pennies or nothing while these companies keep a huge percentage of the revenue. This is completely unfair.
Which is why cryptocurrencies like STEEM and others are changing the landscape. With these cryptocurrencies, content creators can get paid directly for their content. STEEM’s parent company Steemit provides publishers with a means of compensation for their content.
Users can also pay them and reward them directly, thus eliminating middlemen like Google and Facebook. Upvoted content tend to attract a lot more eyeballs and compensation than those that aren’t. Users who contribute too, whether in the form of upvotes or downvotes also get rewarded accordingly.
Get Paid To Rent Out Extra Space
That is, extra space on your hard drive. We all have some extra space on our hard drives that’s just sitting empty and doing nothing. So, instead of leaving them empty, how about getting paid to rent out some of that space?
That’s what some cryptocurrencies like Storj, Filecoin and Siacoin are offering. Users who agree to rent out their space are rewarded in cryptos that they can trade for cash or other cryptocurrencies.
This will result in a faster, cheaper cloud storage platform/network that people can store their files and data on. Since all these data are encrypted, access to them by third party will be impossible. Users will also never have to worry about downtimes as their data will be perpetually available 24/7, 365 days a year.
This completely eliminates the need to trust any data company to do its job well, and keep your data safe. Because of the decentralized, secure nature of these networks, you never have to worry about security, uptime, data loss, extra costs and other associated problems of traditional cloud storage facilities.
Pay For Cars, Vacations And Space Travel
More companies are now open to the idea of car payments, vacations and space travel in cryptocurrencies like bitcoin and ethereum. Car dealers for instance, will willingly accept bitcoin payments for their vehicles.
Some vacation and travel companies are fast jumping on the bandwagon too as they accept cryptocurrencies as payment for everything from flights to hotels and accommodations to transport during vacations.
Also, space travel enthusiasts can pay Virgin Galactic, a space travel company in bitcoins to travel to space when it’s finally possible.
7 Bitcoin Uses & Benefits Conclusion
As you can see, cryptocurrencies are fast gaining ground and acceptability. It’s only a matter of time before they become universally accepted. When they do, you can be sure that those cryptocurrencies will become very valuable. So, if you’re investing in cryptos, find the category your intended digital currencies belong to. Good luck.