With the rise in technology and digital transactions, cryptocurrencies have become a familiar term to online transactions. Cryptocurrency is a medium of exchange, just like normal currencies, that focuses on the exchange of digital information. The first form of decentralized cryptocurrency is believed to be the bitcoin in 2009 and has remained to be the most popular to date. A decentralized currency means that unlike the printed currency, the bitcoin is not controlled or regulated by any central authority or governing body. The transactions are made possible using blockchain technology, which is a record-keeping technology. The technology stores date, time, and dollar amounts as well as transaction information. Blockchain technology is considered safe and secure and thus a viable option for most people.
Over the years, there has been the cropping up of other forms of cryptocurrencies, and the popularization of these currencies in financial markets across the world. Cryptocurrencies are considered to be fraud-proof achieved by the encryption of all transactions to ascertain that transactions are legitimate. Growth of the cryptocurrency can be attributed to the increase in the worth of the bitcoin, which is currently reported to be of higher value than gold. An increase in trust, awareness, and usage among investors has also worked to raise its popularity in the financial world. Below are some of the most interesting uses of cryptocurrencies in today`s world:
- Travel – The growth in the use of the cryptocurrency has grown its purchasing power over the years. Currently, travel sites such as CheapAir, BitCoinTravel, and Destinia accept payments through cryptocurrency. With BitCoin cash, for instance, you are now able to book flights, hotels, and car rentals. The travel site Destinia also allows travelers to book train tickets using bitcoin cash. The Bitcoin travel payment option is also available for professionals and entrepreneurs using the Corporate Traveler option. With the adoption of these payments, it has become easier for travelers to utilize one form of payment in different countries.
- Remittances – A remittance is a money transfer usually made by an immigrant/ foreign worker to their home country. Remittances made using normal currency become expensive due to the transactions cost present. They also take a significant amount of time before getting to the recipient. Non-cash remittances made using Bitcoin are relatively cheaper since the cryptocurrency is digital therefore, there are no middlemen. It is also flexible in terms of payments as users can transfer money at any time as opposed to paper or digital currency that only allows transactions up to a particular time.
- Low-Cost Money Transfers – Perhaps the most attractive reason for using cryptocurrencies such as Bitcoin Cash, Lite Coin, and Stellar is the relatively low rates in financial transactions as compared to conventional methods. This coupled with the high speed compared to common money transaction methods makes cryptocurrency an appealing money transaction medium. This is especially so for the cross border transactions making cryptocurrency payments the best for money transfers internationally.
- Earn Interest – If looking to gain some profit and wealth, then purchasing cryptocurrency is a good place to start. The most popular way to gain interest using cryptocurrencies is through trading. However, this requires a significant amount of skill and experience and is a high-risk option, with a good chance of losing the investment altogether. A safer and steady way to earn interest is through crypto yield farming. What you need to consider is which platforms and coins hold the highest interest. It is important to note that this activity comes with some risk attached. It is also not regulated by any governing body in case of any issues that may arise.
- Purchase Luxury Goods- Bitcoin cash is currently the most popular cryptocurrency and has a high value, making it very suitable to purchase high-end goods worldwide. Bitcoin Cash has been adopted in different markets such as luxury cars, boats, and airplanes with companies like Lamborghini, Dennis Yatchison, and SkyCraft Airplane. The BitCoin cash has also been used to purchase luxury properties such as mansions and land in high-end areas. Institutions of higher learning are also warming up to the payment of tuition in cryptocurrency, pioneered by the University of Nicosia, Cyprus in 2013. This method of payment has reduced interest on loans and the transaction costs involved thus optimizing the tuition fees paid for students.
The emergency of cryptocurrency has slowly crept up on the world and is now more common than odd. The transactions have proven to be effective and optimal for users as compared to paper and digital currency. Just like any new thing, it is necessary to do proper research on this method of payment to fully understand the ins and outs of it. From the trends in recent years, the cryptocurrency is only set to become more popular in coming years.