Are there real-life uses for Bitcoin and cryptocurrencies? Tech-savvy individuals and investors may endlessly talk about the blockchain, proof-of-work and proof-of-stake, confirmations, and price charts. But for the average person, does it make sense? Can we use it for our daily activities without the need to fully understand the complexities of the blockchain technology?

Cryptocurrencies like Bitcoin and the leading altcoins are digital currencies based on a network that's distributed across a vast number of computers. It comes with a decentralized structure, which means its free from the control and influence of central authorities or even governments. Experts say that the blockchain and related technologies may change how some industries work, including law and finance.

Also, cryptos now belong to a new asset class, that's now actively traded in markets. And with the addition of spot Bitcoin ETFs, the playing field has become bigger and more competitive with the arrival of respected financial firms like Blackrock, Fidelity, and Cathie Woods' Ark Investment.

So, where does it leaves us, the average consumer? Are there everyday uses for cryptocurrencies? Well, you'll be surprised at crypto's potential uses, and many of these use cases affect our modern financial system.

Send money safety and efficiently

You can use cryptocurrencies for money remittance, and send money to anyone across borders in a safe and efficient manner. For decades, traditional remittance services like Western Union, were the popular choices for many in the developing countries to send and receive money.

Although these remittance service providers maintain plenty of locations, there are certain challenges. For example, processing a direct deposit to a bank can take anywhere from 2 to 5 business days, depending on the person's location. This is a challenge for individuals in developing countries who urgently need the funds for medical care or other financial obligations. The blockchain technology address this main challenge by offering an efficient cross-border payment that's simple, fast, and potentially cheaper.

Use crypto to pay for products and services

Yes, you can use your crypto when shopping online. Some of the top global companies that accept crypto for payments include Microsoft, PayPal, AT&T, and Shopify.

One of the first companies to embrace crypto for payments is Microsoft. Microsoft first announced its acceptance of crypto in 2014, but stopped its adoption on several occasions. With crypto once again dominating the headlines thanks to a rising price and wider acceptance, it's possible that Microsoft that revisit its adoption too.

Tesla is another global company that flirted with accepting Bitcoin for payments. The company announced in March 2021 that it will be accepting Bitcoin after after a few weeks, Musk tweeted that it has suspended its acceptance of BTC for car payments due to climate change concerns.

Work, collaborate, and transact directly with your peers

Cryptocurrencies help in decentralizing our financial system. Through the blockchain technology, peer-to-peer financial transactions are now possible. You can use your digital coins to transact with, borrow from, or pay your peers directly for their services without third-party intervention.

Also, many firms now use cryptocurrencies like Bitcoin to pay the salary of its employees and independent contractors. Companies with a global workforce and with access to large amounts of crypto may use it as payment option. Employees have the option to convert these digital payments into the local currency, sell these in the cryptocurrency exchanges, or just hold and wait for the asset's price appreciation in the market. Just remember that in some countries, wages in crypto may be subject to taxation.

Final thoughts

Initially, crypto the use cases focused on facilitating financial transactions and helping streamline traditional banking functions. Also, access to cryptocurrencies seem limited, with only a few participants who hold, use or trade these assets. However, trends and developments tell us that crypto's credibility is growing, with an expanding user base. Also, crypto's applications and use cases seem to be expanding.

There is now an increasing number of companies that accept cryptos for payments, and we're not just talking about online casinos that now allow deposits using cryptos. The list of crypto-ready companies and online stores cover different industries, including fashion retail stores, software and web services, and food.

These updated use cases for crypto promote efficiency and empowerment, which benefits everyone who are invested in the blockchain technology.

Owen

I write about Bitcoin and cryptos, the latest news on AI and tech, and follow the latest trends in online gambling, including provably fair games. Educator by profession, with a passion for writing.