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Cryptocurrency and blockchain technology is one of the major advancements seen in recent times. Digital currency almost replaces physical currency due to its advantages.
Today, the crypto market is worth over US$1 trillion. The crypto has grown in popularity as its popularity has grown despite its ups and downs. The number one cryptocurrency, Bitcoin, has become legal tender in El Salvador (2021) and the Central African Republic (2022). The volume of cryptocurrency holders continues to grow because, unlike fiat currency, it is available to everyone. Taking Bitcoin as an example, you can easily buy bitcoins with gift cards.
Although Bitcoin, Ethereum, and other cryptocurrencies have been hugely successful, many are still unfamiliar with cryptocurrency.
In this article, we will learn about cryptocurrencies and their real use cases. Those who have been in the dark will see the opportunities that abound in cryptocurrency.
What is Cryptocurrency?
Cryptocurrency is a decentralized digitally encrypted currency that is not tied to or regulated by any government or central bank.
It is based on blockchain technology, which is a distributed ledger framework. Bitcoin is the first cryptocurrency created which led to the creation of others known as altcoins. It was created by an individual with the pseudonym Satoshi Nakamoto as a solution to the global financial crisis of 2008.
Cryptos are classified as virtual or digital currencies. They were originally developed to provide an alternative payment method for online transactions.
Cryptocurrencies are very volatile, which makes investing in them very risky. This is one of the reasons why many nations of the world have not adopted it yet.
5 use cases for cryptocurrency
Here are the top reasons many people own cryptocurrency today. If your question was about what you can do with cryptocurrency, you need to read this.
- Low cost money transfers
One of the biggest advantages of bitcoin is that compared to other electronic payment systems, it has a very low transaction cost. Bitcoin transaction fees are not as expensive as fees on money transfers negotiated by banks, credit cards, and trading software.
Bitcoin is used by immigrants to send money to loved ones cheaply. This is one of the main reasons why countries like El Salvador and the Central African Republic have turned to Bitcoin for their citizens. BTC allows immigrants to send cheap and virtually instant remittances.
- An alternative store of wealth
Cryptocurrencies such as bitcoin can be used as a store of wealth just like your physical cash. Cryptocurrencies are stored in wallets that no one else has access to.
While your bank accounts and assets may be frozen, this cannot be said of the crypto in your wallet as only the person with the digital wallet’s private keys can gain access to it.
You can buy crypto assets to hold for the short or long term. If you decide to trade your crypto asset, you will need a place that meets your needs.
Prestmit is one of the best digital exchanges to trade cryptocurrencies
- Make private transactions
Many prefer to transact today with cryptocurrency because it cannot be traced by anyone. Cryptocurrency allows users to perform anonymous financial transactions.
This means that individuals can make money transfers without having to explain to a bank why they are sending a large sum of money, what the sources of the funds are and to whom they are sending it, which can delay the transaction and involve unnecessary bureaucratic processes. .
- Travel the world and beyond
Cryptocurrency has grown since its official launch in 2009. Digital currencies are accepted as payment for travel. Top travel agents accept Bitcoin as a form of payment to book flights, car rentals, and hotels.
The growth of the Bitcoin ATM market also means that travelers can now convert their cryptocurrency into local currency in most major cities around the world. If you’re not one that doesn’t want to move around with physical cash, this should be a good option for you.
Crypto assets such as BTC, DOGE, ETH, etc. are available all over the world. You can sell bitcoin in nigeria and other major crypto assets during your visit. This is how crypto has really grown.
- Payment for goods and services
Bitcoin and other crypto assets like dogecoin are used for payment for goods and services both online and physically. Tesla, the NBA Mavericks and many other companies now accept dogecoins for goods and services.
With bitcoin you can buy luxury cars like Lamborghini while Elon Musk’s Tesla will soon accept BTC for its electric rides. You can also buy a range of other luxury goods such as art, fine wines and real estate with cryptocurrency.
You will need to get the latest bitcoin news in nigeria if you really want to use cryptocurrency. Crypto traders, whether beginners or veterans, need to be updated so as not to miss out on these huge opportunities.
Cryptocurrency has several real-world use cases that make it the property of many people around the world today. Its real-world use cases are also why it’s considered the future of money.
Investing in cryptocurrency is the riskiest form of investment. If you have to invest in it, be sure to put in what you can afford to lose as return on investment is not guaranteed. Also note that this article is not intended for financial advice but for educational purposes.