Anyone who has spent substantial time on the internet lately would at least have already encountered the term cryptocurrency. Tech-savvy individuals and finance experts often dub crypto the next great global currency evolution. This could potentially serve as the foundation for society’s future financial system. Even though the concept of cryptocurrency has already been around for a while, it’s still in its relatively infantile stages as a financial instrument. Much of the world still does not recognize crypto, and a large number of people may not own crypto or even have any idea of what it might be.
Despite that, crypto is still quickly becoming one of the most popular commodities and assets in the modern world. It’s establishing itself as a vital component of the digital infrastructure that rules most current systems that govern everyday productivity. In fact, crypto owners and traders are now getting very creative in terms of how blockchain-based currency is used for online transactions. All around the world, millions of dollars worth of crypto are being traded on a daily basis by big-time players and modest crypto owners. In this article, we are going to go over some of the most popular ways that crypto is being used on the internet today.
Private money transfers
The first and one of the most common ways that crypto is being utilized online is through private money transfers. There are various digital currencies like Monero (XMR) and PIVX that allow users to make financial transactions anonymously. This is one of the greatest draws of blockchain technology. Since digital transactions under the blockchain aren’t subject to the regulation of higher bodies, crypto owners are free to engage in safe and private trades. Essentially, it frees people from the burdens of bureaucracy that plague traditional bank transactions, especially when it concerns more significant amounts.
Many eager startups, especially those that are a part of the tech industry, are now adopting this new trend of digital token-based fundraising for their rounds of investments. Traditionally, in order for companies to open themselves up to public investments, they would have to go through an IPO and sell shares via the stock market. Nowadays, with crypto transactions, companies can now engage in ICOs or initial coin offerings. These digital coins essentially function the same way as stocks in the sense that the more valuable a coin is, the higher its stock price is going to be.
Another way that cryptocurrency is being used online is through online gambling activities. Many of the world’s top online casinos are now integrating cryptocurrency features onto their websites. This means that their platforms’ users would be able to deposit and withdraw money from their payment platforms via cryptocurrency. Again, given that many gamblers like to protect their privacy when engaging in gambling activities, there is a huge upside to making use of cryptocurrency for these online transactions.
Crypto is also serving as a vehicle for wealth storage and passive financial growth for a lot of money gurus all around the world. Crypto is further solidifying its status as a hot commodity within the financial industry. Many individuals who invested in coins like Bitcoin or Dogecoin early in its life cycle are now seeing massive gains in terms of their coin values. The coin market is functioning a lot like the traditional stock market, wherein owning company shares can yield much higher returns and interest over an extended period.
Commercial purchases and transactions
Many stores, retailers, and commercial establishments are now offering cryptocurrency as a viable option of payment for their merchandise. Most notably, Elon Musk’s Tesla is now accepting Bitcoin as a viable form of payment for their cars. This has a lot to do with the fact that Musk’s company has bought more than $1.5 billion worth of Bitcoin.
Lastly, it’s now possible to travel globally with the help of cryptocurrency. There are many airlines, hotels, and other transportation services providers who now offer crypto as a viable payment option for transients. This is a much-welcomed addition to the world of traveling as it does away with traditional foreign exchange transactions, which can get very complicated and expensive.
YouTube: How Cryptocurrency actually works (Arun Maini)
Photo credit: The feature image has been done by Karthik GL.