One of the popular comments crypto critics come at us with is that crypto, especially Bitcoin, has no real-world value. Can you imagine that? And that isn’t true at all because crypto adoption is a hot topic, and so far, so good!
I will now list the top ten most common Bitcoin use cases you can respond with when you get false comments like that. And even if you’re not searching for ways to get back at crypto haters, stick around, too. You’ll discover ways that you can maximise your Bitcoin usage.
Some of the ways Bitcoin can be used include:
- Peer-to-peer payments
- Investment
- Speculation
- Crowdfunding
- Online gambling
- Purchasing goods and services
- Donations
- Remittances
- Micropayments
- Store of value
Diving in head first, let’s take a broader look at these use cases.
Top 10 Most Common Bitcoin Use Cases
- Peer-to-peer payments
This is the original plan for BTC —to be used as an electronic peer-to-peer payment system. BTC can be sent from your corner of the world to someone you’ve never seen before in another continent without third-party interference.
So, this presents a convenient and secure means to make borderless and contactless payments. Also, because BTC is the same everywhere, it eliminates the need for currency conversion —safe to say that it’s like a global currency.
You also get pseudonymity with Bitcoin transactions, meaning the sender and receiver can not be easily identified. This comes in handy for those who want to make anonymous transactions.
- Investment
Although Bitcoin is still in its early stages and volatile, it’s an excellent crypto investment. Its limited lifetime supply of 21 million drives up its value, making it a super scarce asset. Therefore, as more innovations come up in the blockchain, the demand and value of BTC will rise.
Also, due to its decentralised nature, BTC is not under any institutional control, which is attractive to investors who want to hedge against inflation while increasing their asset value.
- Speculation
Bitcoin speculation is when people buy or sell Bitcoin, hoping to profit from its future value increase. This is a risky strategy because there’s no way to guarantee that BTC’s price will increase in the future. However, due to some market conditions, some investors see the potential for a significant value increase.
This is also because BTC’s demand as a currency could increase as its adoption rate skyrockets. The crypto’s limited supply also plays a massive role in BTC’s potential value.
- Crowdfunding
Crowdfunding is raising money for a project, cause, or venture by soliciting from many people. This plays out in prominent social causes like movements, rallies, medical emergencies, etc.
Bitcoin-supported crowdfunding eliminates the need for third-party involvement like banks. It also gives global reach as interested parties from other countries don’t have to worry about currency disparities.
Some common crowdfunding platforms are BitStarter and CoinLaunch.
- Online gambling
Some gambling sites allow the deposit and withdrawal of money by offering BTC as a payment method. This saves time and money for both parties (gambler and casino). It also protects the identities of the involved people while providing a secure payment system. Examples of Bitcoin gambling platforms include FortuneJack and Bitcasino.
- Purchasing goods and services
More businesses are incorporating payment gateways with BTC. Across diverse industries, like online retailers, travel agencies, hotels, restaurants, etc. They have adopted this to reach a more extensive customer base who desire fast and cheap transactions with their merchants regardless of location.
- Donations
Several humanitarian and charitable organisations accept BTC donations to further their mission. Some are Wikipedia, The Red Cross, The Water Project, etc. This is a convenient and secure way to make donations, as there are no transaction fees.
- Remittances
Remittances are payments from foreign countries to loved ones in their home country. If you’re in Nigeria or Ghana, you must know how tedious the process is. Not only is it expensive, but it can take forever to receive your money.
However, with BTC, all the receiver needs is a wallet address and in no time, they’ll get their money. Using the Breet app to receive BTC directly makes the entire process seamless. You can automatically receive Naira or Cedis in your bank account without leaving your comfort zone.
- Micropayments
In this age where we consume a lot of digital content, you may want to appreciate a content creator for their work. You probably want to offer monetary rewards to a creator for an article, song, or art, and because traditional payment methods charge high fees for small transactions, BTC makes an ideal alternative.
- Store of value
Crypto investors recognise the benefits of using BTC to beat inflation, and they take advantage of this investment. Bitcoin makes a great store of value for lots of reasons. Some are:
- Scarcity: A lifetime supply of 21 million BTC makes it an asset that can retain value for a long time.
- Durability: As a digital asset stored on the blockchain, Bitcoin is tamper-proof and can not be physically damaged.
- Transferability: BTC is extremely portable and can be moved easily. You can also quickly transfer assets from one person to another without stress.
- Fungibility: Bitcoin being fungible means that one BTC equals another BTC, no matter where it is in the world. This makes it a great medium of exchange for goods and services and a store of value.
Frequently Asked Questions (FAQs) About The Top 10 Most Common Bitcoin Use Cases
Which Crypto Has The Most Use Cases?
The general opinion about crypto has started changing for the better. We see this as more and more countries and industries adopt crypto as a viable payment option.
However, the crypto with the most use cases is still Bitcoin. This is because it’s been around longer and has recorded the most success. Bitcoin can be used as a store of value, payment method, investment, etc.
What Are The Main Uses Of Cryptocurrency?
We’ve come a long way from using BTC solely as a value exchange for goods and services. Now, we can use crypto for many things, like investment, store of value, decentralised finance (DeFi), Non-Fungible Tokens (NFTs), Decentralised Applications (DApps), etc.
These are some use cases of crypto, and more are springing up by the day as the technology continues to evolve.
What Gives Bitcoin Value?
Bitcoin is valuable because its supply is capped at 21 million, which will only increase its value. BTC is also decentralised and is free from inflation that affects fiat currencies. Its growing global adoption by businesses and individuals worldwide also contributes to BTC’s value.
Why Is Bitcoin Better Than Ethereum?
Bitcoin is not better than Ethereum, as they don’t serve the same purpose. Bitcoin’s main goal is to serve as a digital currency. Meanwhile, Ethereum is a blockchain that powers many innovations like smart contracts, DeFi, etc.
You can choose to invest or trade BTC or ETH after comparing them against your financial goals.
What Makes Bitcoin Better Than Money?
Here are a few reasons Bitcoin may be better than money:
- BTC is not prone to inflation because it is decentralised while the government controls money, so it is vulnerable to inflation.
- BTC is the same everywhere and is more fitting for cross-border transactions. However, money is restricted to each country, and the currency difference may make it difficult to conduct transactions.
- BTC can be moved from one country to another and retain its value and validity. The same doesn’t apply to money.
Parting Thoughts
With the many ways Bitcoin can be used, it is on its way to becoming a more mainstream currency in years to come. It’s impressive that despite Bitcoin being relatively new, it has gained this much popularity and acceptance.
I’m excited to see what’s to come in a few years for Bitcoin and the crypto world as a whole. Don’t forget to stay safe and always do your security checks as you transact.
Speaking of transactions, I bet you’ll never have a more hassle-free experience than with the Breet app. This app converts your Bitcoin to cash (Naira or Cedis) or another crypto. Breet is lightning-fast, secure, and offers the juiciest rates ever!
Don’t take my word for it; give Breet a trial and confirm.
Have a good one, folks!
