You might have already heard of or came across the term cryptocurrency once or a few times. And you might already have asked yourself, “What is cryptocurrency used for?” With so much and different information that you can gather nowadays, you might still be confused and still have no clear idea about it.
In order to help you have a better understanding, let us simplify the things that you can do with cryptocurrency. But before we head to that, let us first look into the essential details that you need to know about cryptocurrency.
What is Cryptocurrency?
Cryptocurrency is a type of online money or currency that is not regulated by any country or government but is being created and controlled by third party hosts called miners.
Thus, they are being developed through the process called mining, wherein tricky and challenging math problems are being solved using the power of the computer. Also, unlike traditional currencies, you can only have cryptocurrencies by buying them from brokers.
As similar to your country’s currency, cryptocurrencies can also be placed inside a cryptocurrency or digital wallet. It will be the one that will hold your digital money until the time you decide to spend it. Likewise, through your cryptocurrency wallet, you can also access your digital money in order for you to process payment transactions.
A characteristic of cryptocurrency that makes it unique and interesting is the fact that all transactions made using it is being recorded on a blockchain or public ledger. What is more fascinating is that your personal and financial information is not being shared with the public whenever you do a transaction.
The Acceptability of Cryptocurrency
Since cryptocurrency is a form of money, we can say that when it comes to answering the question, “What is cryptocurrency used for, in general?” we can conclude that it can be used for purchasing some things. However, from its introduction in 2009 up to this present time, not all countries and establishments are accepting cryptocurrencies.
Taking that into consideration, let us give you an idea about the specifics of what is cryptocurrency used for. Through this, you might be able to decide if cryptocurrency is feasible for you or not.
What is Cryptocurrency Used For?
Cryptocurrency can be used to pay for regular goods or commodities like food and beverage that you shop online, as well as some retail or physical stores that accept it as a form of payment. This will significantly benefit you since you will not be carrying any amount when you go to retail stores.
In addition, retail and online stores will also gain benefit once they accept cryptocurrency payments because it has a lower transaction cost than credit cards.
Also, there are already websites that will allow you to buy artworks using your crypto-coins. Likewise, there are also real estate companies and automotive stores that accept cryptocurrencies as payments for houses and cars.
You can also send your digital money to your relatives in other countries, especially if you are an immigrant. Since no specific country owns cryptocurrency, it no longer requires any conversions and lengthy approvals. Likewise, the remittance fee is also very cheap, and the digital money is usually received within an average of 9.11 minutes.
In addition, you can also use cryptocurrency as donations to institutions, charities, or organizations wherein sending of “actual” money or cash is very difficult. Through that, you are assured that your donations directly go to the people who need them. Likewise, your identity as a donor is also kept anonymous since that is how cryptocurrency works in general.
The popularity and the feasibility of cryptocurrency have increased tremendously to the point that there are already educational institutions, like the University of Nicosia, which already accept cryptocurrencies. Meaning, you can use your digital money as a form of payment for your tuition and miscellaneous fees. What is better is that you can use it for either BA, BS, or MS courses.
Cryptocurrency can also be used for helping an individual or individuals in fulfilling his, her, or their goals or aspirations in life. That is made possible by companies or groups that pioneered cryptocurrency crowdfunding projects. What you will do is donate a certain “amount” of your crypto-coins to the project through a trusted platform that has been created by the project pioneers.
The good thing about these projects is that you will not be charged any extra fee unless otherwise stated by the project developers. Likewise, you can withdraw from the campaign anytime when you want to. Thus, you are not obliged to continually give a certain amount to the crowdfunding project that you have joined to earlier.
If you love to travel and want all your payment transactions to be fast and safe, you can also use your cryptocurrencies. There are already a certain number of travel agencies that will allow you to book air, land, and sea travel packages. What is more amazing is that you can also use your digital money for purchasing tickets to the planet Mars!
Illegal Purchases and Gambling
The most controversial about what is cryptocurrency used for is the fact that it can be used to purchase specific unlawful items like marijuana and its derivatives. That is owed to the fact that your identity as a buyer will not be revealed once you pay for the items using your cryptocurrencies. In addition, people can also anonymously bet on online gambling platforms using their digital money.
The Uses of Cryptocurrency: A Summary
As can be extracted from the facts mentioned above, we can clearly say that cryptocurrency is used for similar things wherein we use our traditional money. In fact, it can even be used for specific events wherein your current money cannot be used. The only difference is that it is not yet universally acceptable because not all establishments and countries are still considering or accepting it.
When it comes to the advantage of cryptocurrency over your country’s currency, cryptocurrency is safer to use, especially when transacting online. Likewise, transaction and service cost with the use of cryptocurrency are very affordable. In addition, you also no longer have to worry about conversion rates when transferring it to other countries.