Cryptocurrencies have many alternative use cases that don’t always get as much coverage in the press, so we’re going over six of our favorite use cases for crypto.
As the popularity of crypto has grown, so has the desire to donate it.
With charitable organizations starting to accept cryptocurrency, users have found donation to be a great use case for their crypto.
Famously, Ethereum founder Vitalik Buterin donated $1 billion to the India Covid Relief fund as well as $5 million in ETH to aid in Ukraine.
Donating crypto could have unique tax implications based on where you live, so consult a qualified tax or legal professional for more information on your specific reporting requirements.
According to a report from the crypto donation platform The Giving Block, there are some great reasons why nonprofits accept crypto donations:
- Diversification. Crypto opens up another donation stream for nonprofits, increasing the potential for positive fundraising outcomes.
- Increased adoption. Accepting crypto donations allows nonprofits to reach donors that may have not had a way to donate before.
- Tax efficiency. Donors may be able to reduce their tax burdens, resulting in more available funds for donation.
Crypto donations are on the rise, and you can learn more in our podcast with Save the Children about their aid efforts in Ukraine.
Remittance is a word that comes up frequently in crypto discussions, and it simply means sending money from one party to another.
A remittance is usually a payment, but often when used in relation to crypto, it means people sending money internationally.
Sending money through traditional payment rails is often expensive and slow. Using crypto for international transfers is both faster and, usually, cheaper.
Using crypto is also sometimes the only option for people who can’t access financial services like a bank, or where international transfers are restricted.
Guatemala features numerous bitcoin ATMs, where users can access their non-custodial wallets and exchange BTC for local currency, and many businesses throughout the country now accept crypto as payment.
If the Guatemalan crypto economy seems interesting (and it is), learn more about it in our article, “LatAm’s Crypto Boom: Guatemala.”
3. Store of value
Crypto offers an alternative way for people to store value, especially in places where the national fiat currency may be volatile or unstable.
For people living in countries where this is common, using a tool like stablecoins makes it possible for them to hold onto monetary value, even during times of severe inflation.
Stablecoins are cryptocurrencies that are tied to another value, like the US dollar, and maintain a comparatively steady value.
This stability allows people and businesses to continue making transactions using a currency with a known value, and enables them to build wealth despite localized market conditions.
You can learn more about how this works in our article, “Stablecoins, Explained.”
4. Identity management
Using blockchain technology, you can own a public address where you manage and control your data.
This technology has extended into many areas, such as online identities in Web3, healthcare and legal records, ownership of art, and of course financial transactions.
Since the blockchain is permanent and immutable, it could serve as the most secure digital option for maintaining important records. Blockchain records can also be transferred easily, and access can be recorded without revealing the data contained within the address.
Unstoppable Domains offer a gateway to a fully controlled digital identity through decentralized domain names. These domains can be used as your universal username to access Web3 apps, websites, gaming and the metaverse.
Sandy Carter, Senior Vice President and Channel Chief at Unstoppable Domains, gives the following example:
“Using an NFT domain such as .blockchain enables you to give permissions to who can use that data, when they can use it, and how much they can use,” explained Carter.
“I may want to share my email with a certain organization, but I may not want to share my citizenship or my address.”
Hear more from Sandy and Blockchain.com co-founder Nic Cary in our podcast episode, “Your Online Identity in Web3.”
5. Enabling enterprise
Cryptocurrency and decentralized finance (DeFi) don’t require the same infrastructure as traditional finance, such as banks, creating many opportunities for entrepreneurs to use crypto in their businesses.
Using crypto and other permissionless DeFi tools that don’t require a bank or government to work means that businesses can start and grow, even if a nation’s economy or currency can’t match that growth.
In places like Africa and Latin America, business owners are using crypto to fund daily operations and perform transactions.
NFTs have received a great deal of attention throughout 2020 and 2021. If you’re not familiar, NFT stands for non-fungible token, and is a digital asset stored on a blockchain that is unique and impossible to replicate.
An NFT is a digital smart contract that represents a real item of value, whether digital or physical. Each NFT has its own individual history that can be traced back to the original owner, and they offer numerous benefits:
- They help prove the authenticity of digital assets and ownership.
- Artists can sell their work directly to fans without intermediaries.
- They can be used to represent real-world assets.
- NFTs can be used to create a real digital identity.
NFTs can be used in many industries, including art, gaming, fashion, logistics and events. They can be used for collectibles, managing data, or accessing unique benefits.
Our beginner’s guide to NFTs only takes a few minutes to read, but will give you a good basic understanding of NFTs and how they can be used.
What’s next for crypto?
In the coming months and years, cryptocurrency technology will continue to progress, and there’s a wide range of possibilities for crypto, DeFi and Web3 alike.
We’d love to hear what your favorite use cases for crypto are — tweet us @blockchain
If you’d like to learn more about creating a Blockchain.com Wallet, click here to get started today.
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