Cryptocurrency was first introduced by Satoshi Nakamoto in 2009 when Bitcoin was made available to the world. It took a while for Bitcoin to become mainstream and for people to look past their initial doubts.
However, people now regard it as a legitimate digital currency. Society’s acceptance of cryptos is partially due to other digital currencies, like Ethereum and Tether, entering the market. However, what can you actually use cryptos for?
What is Cryptocurrency?
Cryptocurrency is, at its base, a decentralized digital coin. Being decentralized means that governments don’t manage the coin, so technically, it’s equally available to all people. It uses open-source blockchain technology to facilitate transactions, making it more transparent and secure.
The first digital currencies other than Bitcoin only appeared in 2011. Ethereum especially made waves when it introduced the concept of smart contracts in 2015. It was also the first to host multiple currencies on its system, an idea that’s now relatively common.
This also made cryptos more popular, which resulted in the rapid growth of its ecosystem. In 2017, Bitcoin reached its (then) highest value of $20,000. Meanwhile, the market capitalization of cryptos exceeded $800 billion, causing many to invest in cryptos.
Still, cryptos have had a turbulent history, with their value rising only to fall drastically, like in the 2018 burst. The market was unable to sustain its rapid growth, so prices declined steeply, resulting in a crash.
However, since then, crypto’s value has been steadily increasing, as can be seen by the recent record-high value of $93,477 Bitcoin. The question is now whether Bitcoin’s value will continue to increase to $100,000 or drop to just below the $70,000 mark it’s been at for a large part of the year. Regardless, cryptos are legitimate currencies that can be used for a variety of reasons.
The Most Popular Cryptos
Before we look at how people use cryptos, it’s a good idea to understand the most popular cryptocurrencies. Bitcoin remains the undisputed king, especially with a single bitcoin currently worth around $88,292.39, though that will fluctuate every second. However, since its value is so high, it’s not necessarily a crypto appropriate for everyday usage.
Ethereum is the second-most popular crypto, currently standing around $3,068,51 for one coin. Following Ethereum are Tether, Solana, Binance, Dogecoin, Ripple, and USD Coin. However, none of these have values as high as Bitcoin and Ethereum, so they’re more appropriate for everyday use.
Top Uses of Cryptocurrency
Since cryptocurrencies have expanded in the last few years, there are several markets in which you can use them. Below, we examine which markets have become the most common places to use cryptos.
Investing
Investors are always looking for new products and sectors to invest in. With the economy fluctuating, they’re always on the lookout for sectors with resilience against these fluctuations. Crypto was one option that quickly became popular, as the extreme volatility of this currency can result in excellent returns on a small investment.
For example, in 2016, you could buy one bitcoin for around $513.40, and now it’s worth $88,292.39. However, the opposite can also happen, with investors investing thousands into a currency and getting almost nothing in return.
For example, when it was worth $16,462 in 2017, it dropped to $3,397.70 in 2019, which was an immense loss for many businesses. Still, investors love investing in these digital currencies, with several companies also investing in them. The idea behind investing in it is that you buy crypto and keep it as long as possible in the hopes that the value increases.
Trading
Many people instead choose to become crypto traders who handle short-term transactions over long-term investments. You use an exchange platform to buy and sell crypto based on the CFD account movements. What this means is that you predict the value movement of coins without having to own them.
As such, you can buy cryptos you think will increase in value and sell cryptos you believe will fall in price. Typically, these trades are fast and permanent, so they require a particular type of mindset and quick action to do it successfully.
Many traders also use software and AI programs to monitor coin prices rise and fall so that they can react faster and take advantage of price fluctuations. This can be a lucrative process, but it can also result in significant losses if the market changes quickly.
Mining
Another way to use cryptos, or more accurately, receive cryptocurrency, is by mining. Mining refers to when blockchain transactions are approved. Blockchain adds complicated mathematical puzzle encryption to each block to safeguard the transaction.
People can then “mine” the block by using high-energy computers (nodes) to “solve” the puzzle and add the block to the blockchain. By solving the puzzle, they receive new bitcoin, called block rewards. It acts as an incentive to record the transactions on the blockchain and remain as transparent as possible.
However, this is a very competitive field, which means that it can be challenging to come by mining rewards. You also need access to extensive and high-quality hardware and software to stand a chance of competing with others.
Playing at Online Casinos
One area where cryptos are becoming more accepted is online casinos. Many casino sites are now crypto-exclusive or accept cryptocurrencies along with other fiat currencies. You make deposits using the crypto of your choice, though some casinos only support specific ones.
These are typically Bitcoin, Ethereum, Litecoin, Dogecoin, and Tether. Once you’ve deposited, you can play the best slots using these digital currencies, and any winnings are included, too. Some of the popular slots available to play are Pragmatic Play’s Sweet Bonanza, Play’n GO’s Book of Dead, and NetEnt’s Starburst.
When you withdraw winnings, you can do so using the crypto you’ve deposited with. It’s important to note that you typically won’t be able to deposit using one crypto and then withdraw using another. Deposits are typically instant, and withdrawals cash out within a few minutes to 24 hours at most.
FAQs
If you still have questions about the most popular uses of crypto, check out the following FAQs.
- How to play slots in Vegas?
Not everyone has the time or funds to travel to Vegas and experience the iconic casino environment. However, at online casinos, you can play fun slots on the website by simply depositing and clicking on the slot you want to play.
- What does volatility mean in slots?
Volatility in slots refers to how frequently wins will theoretically occur. Low volatility will result in frequent, smaller wins, while high volatility will result in infrequent, more significant wins.
- How do I trade crypto?
You should use an exchange platform to trade coins. You can use a CFD account to monitor the coin fluctuations and make smart trades.
Other Crypto Uses
While we discussed the most common uses for digital currencies above, that’s not all you can use them for. With their increasing popularity, there are also other uses now available.
Purchasing Products
Crypto has become mainstream enough that some retail stores allow customers to use it to buy items. Some car showrooms will also accept crypto payments when buying vehicles, while many other brands will allow crypto payments.
These brands include Apple, Alternative Airlines, Aveda, Best Buy, Christian Dior, Disney, Expedia, Gamestop, Nike, PlayStation, Walmart, and Ray-Ban. With items like jewelry, games, and electronics purchasable with cryptocurrencies, it won’t be long till it’s available at all stores.
Buying Insurance
Some insurance companies have begun accepting cryptos as a form of payment. These companies include AXA (a Swiss insurer) and Insurance Panda (an auto insurer), though there can be some restrictions. For example, AXA doesn’t allow life insurance on cryptos.
Metromile will also accept cryptos as payment for premiums and pay-out claims in these currencies. Further, Premier Shield Insurance in Massachusetts allows business, auto, and home insurance payments to be in Bitcoin (but with a $5,000 limit).
Buying Real Estate
Cryptos have grown to the point where you can buy real estate using it. Companies like Burnet Title, Clear Title Group, Cornerstone Title, First California Escrow, and Sunbelt Title allow real estate purchases in specific cryptos. However, you’ll have to check with each agency individually what restrictions and conditions they have.
FAQs
We examine a few of the top questions regarding the usage of cryptos at these establishments.
How do I know if a business accepts crypto?
The best is just to ask them, as you’ll receive the most straightforward answer that way. However, you can also check their website for the cryptocurrency icons or read their terms and conditions.
Can I buy a coffee using crypto?
Yes, some coffee shops, like Starbucks, will accept crypto payments. However, they take it through their partner app, Bakkt.
Can I use crypto to travel?
Yes, some travel websites and airlines, like Expedia and Alternative Airlines, allow you to purchase travel options using a cryptocurrency. Though it might not be what you thought about, you can also buy space travel tickets using Bitcoin from Virgin Galactic.
Risks of Cryptocurrencies
While you can use digital currencies for many different things, like playing your favorite slots at Stake, you should consider the risks first. Below, we discuss the top risks you must be aware of before using cryptocurrency.
Volatility
Digital currencies are highly volatile, as they don’t link their value to fiat currencies. As such, the market price can decrease or increase at the drop of a hat. For that reason, when you use crypto, you should always be aware that the value can change instantly. What you used to buy coffee for yesterday might not be enough today.
Decentralized
These currencies are decentralized, which is both a blessing and a drawback. It means no government can interfere with it, but it also means you have no legal protections. As such, if you use cryptos, you’re trusting the wallet’s integrity. If you’re part of a scam or someone hacks your wallet, there’s no government protection like there is with credit card scams.
Blockchain Technology
Blockchain technology uses smart contracts to approve transactions, which typically means that the transactions are instant and irreversible. As such, if you accidentally make the wrong transaction, there’s no reversing it. It also means it’s almost impossible to dispute a charge or payment, which makes it the ideal target for hackers and the like.
Open-Source Transactions
Blockchain technology uses open-source coding, which means anyone can check it. However, the nature of its code and transactions also means your transactions aren’t always private. All transactions are recorded in a public ledger, which means your details (such as a wallet or shipping address) can be confirmed by anyone who knows where to look for them.
Entering the New Age with Cryptos
Cryptocurrency might have had a slow start, but it’s really picking up recently. More and more people are starting to use it, mainly because they realize there are other benefits to using it than just trading or investing in it. You can play famous slots using it, such as Sweet Bonanza or your favorite frappuccino at Starbucks.
FAQS
If you still have a few questions, check out the common questions we found and our answers to them.
How to play Sweet Bonanza?
Sweet Bonanza is a slot, so you play it by using the spin button at the bottom of the reels. When you open the game, it’s a good idea to read the paytable first, as that’ll explain the different features of the slot. Afterward, you have to adjust your bet to an amount your bankroll can support and start playing.
Where can I play Sweet Bonanza?
Sweet Bonanza is available at any online casino that lists Pragmatic Play titles. One such example is Stake, one of the well-known casinos in the US and globally.
Is there a limit to how much crypto can be in the market?
Yes, some cryptocurrencies will limit how many coins can circulate in the market at any one time. For example, the Bitcoin network has limited its lifetime supply to a max amount of 21 million coins, while it currently has a circulation supply of 19.782 million.