Simple Reminder on How Bitcoin (BTC) and Other Altcoins Can Be Used Today
Since Bitcoin’s [BTC] existence, the crypto market has come a long way. What started as an endeavor exposing the effects of the 2008 financial crisis, led to the creation of a decentralized peer-to-peer system (or gold 2.0 as leaders have recently been arguing) – further inducing innovators to create solutions for other issues across vast industries.
Adoption has definitely picked up, as inflation in currency values have led many people retorting to cryptocurrencies, not to mention its potential investment strategy compared to traditional stocks. This being said, adoption has not reached its peak, as there remain several parts of the world that are pushing away from digital assets.
One aspect contributing to this concern, is the lack of education, more specifically, not being able to identify different use cases. A recent Null TX post shared four popular ways to make use of cryptocurrencies, as a reminder for those who still are confused about it all. Here’s an overview of what has been shared:
1. Online Shopping
According to the news outlet,
“When it comes to the many different gift card providers accepting cryptocurrency payments, the sky is virtually limited. Other intermediary services allow users to buy anything online with cryptocurrency, as long as the vendor ships to the customer’s country.”
One might argue that the use of crypto appears to reflect that of credit or debit cards, and this is something that many need to reflect on. That is, digital assets can too serve as a medium of exchange. One of the key aspects of cryptocurrencies that have gotten many hooked are its low fees, which is not often seen with credit cards, as the latter’s interest rates can fluctuate on either end of a percentage spectrum.
2. Cross-border Payments
The case made here is that sending money globally using the likes of BTC and altcoins has been something many banks have been indulging in. Take Ripple for example, they have since partnered with hundreds of banks to make such a service possible across the world. As per Null TX:
“Bitcoin and […] major currencies can easily be transferred around the world as a solution to replace traditional money and bank transfers […] It is more accessible than traditional banking with far fewer requirements to contend with.”
Communication apps, such as WhatsApp and Telegram, have been referenced here to depict their involvement in crypto transfers as well and how things are becoming simple and convenient. While said services are currently limited to BTC at large, it won’t be long before more altcoins are onboarded.
3. “Lending Services for Passive Income”
Lending services, as noted by Null TX, can help to increase one’s holdings, hence resulting in passive income. Although not all coins support staking, those that do, “can often pocket between 0.5 and 8% interest per annum.” With this in mind, the news outlet sees this as a viable option but advises people against simply getting into the crypto sphere for the sole purpose of
4. Bitcoin as Income for Freelance Work
With several freelancers around the world, initiating and receiving faster payments are something that they rely on, and this is something the use of cryptocurrencies can help them achieve. Trying to figure out what type of payment method works best can be tedious, especially when the employer and employee have to communicate from two different countries. Some of the services that employers can access include:
“Bitwage [which] allows companies and employers to use traditional payment methods, whereas the recipient can convert the payments to Bitcoin as they see fit.”
This is unmistakeably some of the key use cases for cryptocurrencies. What other use cases do you think will help convince the general public in considering cryptocurrencies? Let us know in the comments below.