At this point, many of us have heard of cryptocurrency in some capacity. Maybe we’ve seen the headlines about Bitcoin’s history-making bull run or maybe we invest in cryptos as a whole. A lot of hype around cryptocurrency has to do with the ways that it is possibly superior to fiat currency.
Indeed, many cryptos were created with the purpose of competing with or replacing fiat currencies. Over a decade since the inception of crypto, these digital assets have offered consumers an alternative to fiat in many ways, some of which are as follows:
- Gambling
The gambling industry has proven itself to be very innovative and offers users new features as tech evolves. This includes offering customers many options in terms of the currency they use to gamble.
In the past, fiat currencies were the only options available for consumers but now, many casinos offer cryptocurrency as an option alongside them. And among many groups of consumers, there are reports of cryptocurrency options usually being the most attractive. This is because, as crypto writer Michael Graw says, unlike fiat currencies, their value frequently goes up; this means that can enjoy double profits. Cryptos also offer fast and cheaper transactions, as well as more privacy for those who use them.
- Investment
Perhaps cryptos’ most famous use case is as an investment vehicle. Many cryptos like Bitcoin have been delivering consistent returns for investors and this has put them alongside traditional assets like stocks in terms of popularity. Cryptos, while being distinct from assets like stocks, offer many benefits for users.
Compared to assets like stocks, they are easier to purchase and allow for a level of privacy and control we don’t typically associate with traditional assets. Crypto investments can also take on different forms like staking, lending, yield farming, and much more. With these on top of the success of major tokens, many these days prefer them to mainstream assets.
- Spending
Besides making money from cryptocurrency, it is also possible to spend cryptocurrency. While it is not as widely accepted as fiat currency, there is a growing list of businesses that take crypto. These include multinational companies and local businesses and more consumers are choosing to pay with crypto.
There are several benefits to doing so like faster transactions and more privacy regarding what they buy. Because cryptos and their wallets are decentralized, there is no institution that has oversight over how they are spent. As such, transactions cannot be blocked and there are no limits to how much they can spend and on what.
- Saving
One thing that cryptos have proven over time is that they are a good hedge against inflation, even more so than many legacy assets like gold. It is also convenient that crypto is more accessible than assets like gold in some cases. This has led many consumers to leverage crypto as a savings tool and as a means of protection against inflation.
This is especially true in countries with a high inflation rate and was especially prevalent during the COVID-19 pandemic. As time goes on, we can expect more consumers to opt for crypto for this purpose.
- Cross-Border Transfers
People need to send money across borders for many reasons and for decades, there have been struggles associated with this. From slow transaction times to high fees, sending fiat currency across borders has proven a challenge.
It is for this reason that some consumers have opted for using crypto instead. Tokens like XRP and Litecoin are known to complete transactions very quickly and at a low cost. For this reason, many have been used, often instead of fiat currency, cryptos to send money to other regions.
Conclusion
While it might have been underrated in the beginning, cryptocurrency has proven that it can be used in the same way that fiat currency and traditional assets. In some cases, it has proven to be even more effective at certain tasks.
The 2010s saw crypto solidify itself in the public’s consciousness and as it attains more major milestones, we can expect these use cases to become even more prominent.
