The idea of money has come a long way and has played a part in the development of human history for at least 3,000 years. Humans have moved from the barter system to coins and paper money. Cryptocurrencies are sort of the latest evolution of money and many are starting to catch on.
Cryptocurrencies are one of the most discussed subjects in the world at the moment. There’s pretty much something about cryptocurrency in the news every day. Given cryptocurrencies’ widespread prominence, it is easy to assume that half of the world has at least heard of cryptocurrency.
In 2021, at least 300 million people around the world will actively use cryptocurrency. Most users around the world are from India, the United States and Nigeria. A growing number of transactions happen every day on the best cryptocurrency exchange UK, US, Africa, Asia and other parts of the world.
But, what do we really know about cryptocurrency? Is it actually useful?
What is cryptocurrency?
Cryptocurrency is any digital currency, secured by cryptography, used to exchange goods and services online, and is powered by blockchain technology.
There are at least 4,000 different cryptocurrencies in the world with each cryptocurrency varying in level of importance. These are some of the most important ones;
Bitcoin. Ethereum. Litecoin. Cardano. Polkadot. Bitcoin Cash. Stellar. Chain Link. Binance Coin. Tether. Monero.
Most of these cryptocurrencies are created by companies in the form of tokens which could be accumulated over time. Countries including the UK, US, Canada and Australia allow the use of cryptos and that helps to make them more valuable.
What do people use cryptocurrencies for?
There are many things people do with cryptocurrencies. Here are the most common uses of cryptocurrencies;
Purchasing goods and services
Not every business is interested in settling transactions with digital currencies. But, many businesses have come to accept cryptocurrencies as the future. Fast food joints (Burger King, Taco Bell), Tech companies (Paypal, eBay) and Food and Beverages (Coca Cola) have all begun accepting Bitcoins as sufficient payment for goods and services provided.
People shop for clothes online, order pizza, pay for TV subscriptions and even buy real estate using cryptocurrency.
There’s more growth to be seen for cryptocurrency where the purchase of goods and services is concerned. Every year sees an average of 12.5% growth in the number of crypto-facilitated e-commerce transactions.
Making Investments
Cryptocurrencies have become popular for making investments. Although most financial analysts generally discourage investing in cryptocurrency because of its volatility, many people still believe it is the way to go.
And they’re not wrong.
Early this year, CBS News reported that there are at least 100,000 bitcoin millionaires. Even with the dip in value that has occurred in recent months, many people who invested in cryptocurrencies — that are now valuable — have made sizable profits.
The popularity of digital platforms like Coinbase and Robinhood has made investing in cryptocurrencies simple and fast.
Tuition Payment
Now, this use of crypto may come as a shock but it is true.
In 2014, a school in New York City started accepting Bitcoin as a form of tuition payment. Other schools — in Nigeria and parts of Europe — have since followed their footsteps paving the way for even more schools to accept cryptocurrency as a way to pay for tuition.
NFT Sales
NFTs (non-fungible tokens) are perhaps the biggest current extension of the crypto and blockchain era. NFTs are digital assets representative of things in the real world — and they are booming. Andy Murray’s Wimbledon winning moment in 2013 recently sold at 7,000 at an NFT auction.
Most NFT sales are facilitated by cryptocurrency. That comes as little surprise when you consider the fact that NFTs themselves are generally held on the Ethereum blockchain.
Conclusion
The core purpose of cryptocurrencies is the same as every other form of money. Therefore, anything that money can be used for represents something that cryptocurrencies are also capable of.
There’s reason to believe that the longer cryptos stay around, the more people will trust them and the more use cases we’ll have for cryptocurrencies.
This news is republished from another source. You can check the original article here.
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