Contents
Cryptocurrencies such as Bitcoin and Ethereum have been a wild ride over the past few years, especially since the beginning of the COVID-19 pandemic. With all the commotion, many of us may have lost sight of some of the use cases of cryptocurrencies, both the ones that have continued being relevant and some of the new ones that have emerged.
With over 40,000 cryptocurrencies currently on the market, it would be impossible to cover their individual use proposals. Instead, we cover the biggest trends that are seeing and predicted for the last quarter of 2022.
As an Investment Asset
This is one of the most common uses of cryptocurrencies. In this sense, it functions in a similar way as other fiat currencies, heavy metals, or stocks. You can buy any number of cryptocurrencies at a certain price in hopes that their market value will increase over any given period of time, allowing you to sell them for a profit.
A number of great crypto trading platforms have come online over the last few years. Check out these reviews to make sure you are signing up at the right ones. This is an important matter as the right decision can come with access to bonuses, the right market prices, and, therefore, a nice chunk of change.
While cryptos function, in general, like other investment assets, they do offer some advantages and disadvantages. For example, many economists think that cryptocurrencies can resist inflation, at least those with deflationary circulating supply caps. Crypto markets tend to have higher peaks and lower valleys.
Use Them to Make Online Payments
Another common use of cryptocurrencies is to make online payments. They are increasingly accepted across major online industries and at major brand names. For example, if you are into taking care of the environment, you can buy an electric car from Tesla. If you want to go to the movies, you can purchase tickets online from AMC Theatres.
If you are into gambling, today’s best online casinos in the industry are accepting cryptocurrency more and more. Here, you will find the best online casinos, as these experts have looked at the security, game selection, bonuses, promotions, and, of course, banking methods in order to recommend only the best. These experts are regularly testing their online casinos, so you can be sure these reviews are up to date.
But these are just a few of the places you can use Bitcoins and other cryptocurrencies to make online payments. Other companies include tech giant Microsoft, coffee retailer Starbucks, grocery store Whole Foods, and construction supply store Home Depot. Chances are you have heard of these stores and companies and may even shop there!
Cryptocurrency as Banks to Make Loans
You may be surprised that cryptocurrency loans exist, but crypto has been moving into the banking realm for some time now. While they have been able to execute things like smart contracts for a long time, thanks to the innovations of the Ethereum network, crypto loans are a somewhat newer innovation.
In crypto trading, the borrower uses crypto as collateral. They then receive a crypto loan and agree to pay an agreed-upon interest. This innovation has given more liquidity to cryptocurrency markets and has expanded the pool of potential investors significantly. Look for more decentralized finance innovations on the horizon!
Blockchain Games
Perhaps the newest use case on this list is the advent of blockchain games. These are divided into two general categories: move2earn and play2earn games. In the former, you turn on the app and either walk or run and thus begin minting cryptocurrencies. In the latter, you play against bots or other players and compete for the cryptocurrencies.
Many of these, though not all, will require an initial investment by purchasing a non-fungible token. These games are able to produce value either by collecting fees, showing advertisements, or collecting, aggregating, and selling location data. For many, this has been the perfect entry point into the world of cryptocurrencies. It represents a new stage in mainstream adoption of the technology.
It has been an exciting time for cryptocurrencies! With the metaverse in full expansion, we can expect more and more use cases to emerge over the next few years. Hold on tight!