Cryptocurrency has gained a lot of mainstream attention in recent years, but unfortunately not always for the right reasons. The FTX debacle will be a painful part of the collective history of cryptocurrencies forever.
However, with the rise of crypto coins such as Bitcoin and Ethereum, more and more people are starting to explore the potential uses of cryptography in their daily lives. While cryptocurrencies are still mostly associated with buying and selling on crypto exchanges, the potential uses of cryptocurrencies go far beyond the usual day-to-day financial transactions.
In this article, we’ll explore four interesting ways crypto is used today, from sending money overseas to crowdfunding and more.
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A very interesting use case for cryptocurrency is in the field of philanthropy. Charities can use cryptocurrency to accept donations and ensure transparency in their financial activities. Cryptocurrency can be used to keep track of how donated funds are used and to make sure they go to the intended recipients. This can increase trust in the charity and encourage more people to donate a healthy portion of their crypto earnings.
Some of the world’s largest charities, including the Red Cross, United Way, and Greenpeace gladly accept your cryptocurrency donation. In addition, donating cryptocurrencies directly to an organization could potentially result in a larger chunk going to causes that interest you. This is because according to the IRS, donating cryptocurrencies is not a taxable event, so you won’t realize any gain or loss when donating cryptocurrencies.
In Canada, the opposite is true. When you decide to donate cryptocurrencies in Canada, you will pay capital gains tax on any profit. Something to keep in mind.
Another interesting use case for cryptocurrencies is in the area of international remittances. Cross-border sending through traditional channels can be expensive and time-consuming, with high fees and long wait times.
Bitcoin and other cryptocurrencies offer solutions to make cross-border transactions faster and cheaper. This is because cryptocurrency transfers are decentralized, meaning you can bypass the exorbitant fees charged by banks and traditional services like Western Union. This has made crypto a popular option for migrant workers who send money to their families in their home countries.
In addition to being faster and cheaper, the recipient of your international cryptocurrency transfer does not need to be the owner of a bank account. You can send cryptocurrencies directly to the recipient’s wallet. Once they reach their wallet, the recipient can hold the cryptocurrency or decide to cash it out.
This particular use case for encryption can have a huge impact on people who have no or limited access to banking services. Especially when you consider the fact that nearly two billion people remain unbanked worldwide.
Not only has crypto changed the way we think about sending and receiving money, but it has also changed the way we think about the online gaming industry. Players around the world have used crypto to purchase new virtual goods, pay for services and upgrades online, and even receive rewards for getting to the next stage or being the last man standing.
One of the most popular ways players spend their cryptocurrencies is by making in-game purchases. There are also numerous games out there that allow players to exchange virtual currency or weapons for crypto tokens that can be cashed out with real money.
Crypto has quickly become an integral part of the gaming industry and has given players more control over their experiences and how they spend their time behind the screen. This will only help improve the overall quality and profitability of online games in the future!
“What is crypto crowdfunding?” we hear you ask. Well, in short, crypto crowdfunding provides a financial lifeline to projects, associations, start-ups or people who are looking to generate crypto funds to support and develop their unique ideas.
A recent example is the Ukrainian government turning to crypto crowdfunding to help it overcome the initial brutal invasion from Russia. The invaded country posted on Twitter the addresses of several crypto wallets to accept Bitcoin, Ethereum and Tether.
Less than two weeks after Putin started the war in Ukraine, the global cryptocurrency community donated over $50 million in cryptocurrencies to help the Ukrainian government and its people. To date, Ukraine has received over $180 million in crypto donations, including $5 million from Vitalik Buterin, the co-founder of Ethereum.
In conclusion, while buying and selling cryptocurrencies is the most common use, cryptocurrency has a wide range of interesting use cases. From value storage to micropayments, online games to remittances, charity, crowdfunding and NFTs, cryptography has a wide range of applications that are explored and developed.
As the cryptoverse continues to evolve, we can expect to see even more innovative uses for this digital asset in the near future.