How cryptocurrencies can be used?
The technological revolution which was brought us by cryptocurrencies has several aspects. One of the most groundbreaking inventions come from blockchain technology. It has an incredible potential in data processing, saving information in a way it cannot be altered etc. We discussed that in two articles (What is blockchain? and What is blockchain used for?). Still, it must be stressed, that it is one of the few functionalities of cryptocurrency environment. But what other applications cryptocurrencies have other than blockchain technology?
Investing in cryptocurrency
First of all, for many people, cryptocurrencies are a form of investing their funds. As the crypto market is very volatile (we already discussed cryptocurrency volatility in this article), a skilled trader can use it for own favor. Sometimes the return of investment rate with intensive trading can reach 100% in a matter of just several days. Or – if we speak about hodlers (you can read about it here – article how to profit from Bitcoin), sometimes even no trading after purchase is needed.
Fast and cheap cryptocurrency transfer
If you make a money transfer abroad (especially to one of the exotic countries) using bank services it takes time and is costly. In some cases – your transfer might take up to several business days because on the way there is a number of corresponding banks, each of them taking its own transfer fee. With cryptocurrency transfer – it is usually a matter of minutes, if not seconds. As well, in some countries you can use Bitcoin ATM and cash out your cryptocurrencies to the local currency.
Can I pay with Bitcoin?
Another application of cryptocurrencies is using them as actual currency replacement. For now, you can buy using cryptocurrencies jewelry, computers, book a flight, get a pizza, buy access to the newspaper online edition or even pay for an adult entertainment. Usually, this applies to shops online or online service providers (or at least ones which allow you to pay online), while each month there are more and small retailers, pubs, restaurants, lease a yacht, buy books or even top up your phone balance.
Can cryptocurrencies help developing countries?
In many developing countries, access to financial services is hardly available. In some countries, paying a visit to the nearest bank may require traveling for many hours if not days and some of those banks provide extremely limited services. For small businesses, it is extremely hard to get a loan (like where the inflation rate is extremely high), or in case of them trading with foreign companies, even an exchange of fiat currencies can be a challenge. This is where cryptocurrencies and cryptocurrency related services give enormous potential to help whole country economics.
To sum up, cryptocurrencies can be widely used all across the globe. As a mean of payment, method of investing or even way of developing international business relations. Even if so far there are not yet accepted everywhere, we should remember, that a couple of decades ago, credit/debit cards had been a novelty. Many people had been very suspicious about using them – and right now most of the people reading this article have at least one of them if not more. And we hope that the same fate will be shared by cryptocurrencies.