The global cryptocurrency market cap today is over $2 trillion, with Bitcoin consistently in the lead. The total market volume of all the digital assets in the market has significantly grown in the post-pandemic era as public confidence in the stability of the traditional banking system continues to deteriorate.
But with so many people now investing in cryptocurrencies, it’s important to be aware of their practicality in everyday life. As such, we will explore the real-life uses of cryptocurrencies and how they work below.
Entertainment, Gambling, and Hobbies
Crypto is now accepted as a payment method in conjunction with other traditional options by several online platforms that sell services, products, or collectibles. So, since these major companies have embraced cryptocurrencies, consumers now have more opportunities to spend their digital assets.
The popularity of bitcoin poker in Australia is one of the most prominent examples in the online entertainment industry of establishments adopting the new technology. It has allowed players to bet with Bitcoin amongst other cryptocurrencies in the same way they would with traditional currencies. Crypto poker platforms have emerged as a distinct subset of online poker, offering unique advantages to players.
Players benefit massively from the blockchain features of Bitcoin-powered poker, such as added privacy and security. This is all due to the fact that cryptocurrencies are decentralized, meaning there is no governing entity controlling or managing your payments.
Thus, the use of cryptocurrency for gambling games like poker and its variants has changed how operators and players interact. Unlike bank transfers, crypto deposits are nearly instantaneous, and the same goes for when players cash out their winnings using cryptocurrencies. The appeal of this fast-paced process has encouraged players to play more often.
Another feature of crypto poker that attracts gamblers is cheaper transactions, the entertainment platforms themselves don’t charge anything for the process. While the transaction fees vary from cryptocurrency to cryptocurrency, all of them tend to be much cheaper than banks. This is especially true when it comes to international payments, as the transaction speed and fees are the same.
For those worried about the volatility of the market, it’s important to note that there are safeguards placed against price fluctuations. Once you make your crypto payment, it is automatically converted to the platform’s main currency.
Finally, we’d like to note that players who use crypto tend to enjoy exclusive bonuses and offers. This is due to the advantages mentioned above, which benefit both the players and the online casinos.
Business Transactions
Many businesses around the world are leveraging blockchain technology to get rid of lengthy processes and expenses associated with banking services. From smaller e-commerce companies to tech giants, several business entities are now choosing cryptocurrencies to streamline their operations.
As advised, transactions are much faster than regular cards, which allows businesses and their clients to get things done swiftly. However, let’s address the technology behind this a touch further and the other reasons why such companies choose it. Blockchain is the underlying technology of cryptocurrencies, and it is helping businesses beyond payment transactions.
It is an immutable ledger shared across a network of computers that can track every important digital process, not just currency transactions. This minimizes fraudulent activities and makes tracking and verifying goods much easier, in addition to being cost-effective. Here, the supply chain industry works as a great example, as it has benefited a lot from this technology.
Cross-Border Payments
Cryptocurrency breaks through geographical payment barriers, allowing everyone around the globe to trade, sell, and purchase with ease and at practically no extra cost. Banks charge outrageous fees for transactions, even more so for transferring money internationally. Since these intermediaries are not involved, peer-to-peer money transfer is cheaper, faster, and accessible at all times.
With cryptocurrency, individuals can send money to family or friends abroad without paying anything to a bank or worrying about processing speeds. Skipping complex bank procedures for remittances is something only cryptocurrencies like Bitcoin and Ethereum facilitate.
E-Commerce
Several major brands and online retailers have started accepting cryptocurrency in the last 5 years, this adoption has grown exponentially during the pandemic. The e-commerce sector has experienced a huge rise in customers paying with crypto. This shouldn’t be surprising, as there is no alternative that is cheaper, faster, and more secure at this moment in time.
While some people treat cryptocurrencies exclusively as an asset to get returns in the long run, many have realized the benefits of spending on online purchases. As the currency functions similarly to traditional currency when it comes to buying online products, long-time crypto investors are choosing it as an everyday currency.
While there are sites that do not accept cryptocurrency payments, there are workarounds for them. To solve this, platforms have emerged that allow customers to purchase brand-specific gift cards and vouchers with Bitcoin, ETH, USD, and other popular digital currencies. This indirectly allows people to spend crypto at every possible online retailer, even giants like Amazon.
Investment
Cryptocurrencies are considered an asset class, with many investors buying to hold them for price appreciation in the future.
Various practices like Bitcoin staking and finding currencies with the most potential have been created that allow users to passively earn rewards, usually in the form of more crypto tokens, when they lock their digital assets in the blockchain network for a certain time period. This is one of many ways cryptocurrencies have proved to be very useful in generating decent income for investors.
Now with spot Bitcoin ETFs and Ether ETFs, investors have easier ways to make money from holding crypto. As such, crypto today is without a doubt as good of an investment to diversify an individual’s portfolio as any.