Digital currencies, also known as cryptocurrencies, have been making headlines all over the world in the last few years. These new forms of currency, invented for the digital age we live in today, are used exclusively through the internet, either on computers or mobile devices. These digital currencies are mainly used to transfer funds and store wealth, but they have a wide range of different uses, including cloud-based storage, promoting high-quality content on social media and tracking the authenticity of designer goods.
It is hard not to include online gambling when writing about this topic. The digital nature of cryptocurrencies and the advantages of keeping privacy is key. Although offers like cashback casino bonus might be hard to come by at a casino for digital currency.
There loads of different ways that digital currencies are changing the way people send money and interact online. We’ve made a list of some of the best uses of digital currency, including a look at how these might develop in the future.
A Measure Against Inflation
Bitcoin is the most famous example of a digital currency, and one of its main advantages is that it’s deflationary. Compared to other forms of currency, which are subject to inflation, meaning they lose value over time, Bitcoin is designed to steadily increase as it becomes scarcer. For countries such as Turkey and Venezuela, Bitcoin has proved to be an invaluable measure against the recent inflation of the national currency. As inflation continues to affect people living all over the world, many will see currencies like Bitcoin as an alternative.
Earning Interest Through Staking
Those who own digital currencies can use them to earn interest, either through staking or by loaning their coins through exchanges. Interest rates can vary, but many sites offer between 6% and 10%, a big positive considering interest rates offered by banks are lower than they have been for some time. This form of lending isn’t without risk, however. It’s important to be mindful of the reputation of any site you leave your coins with. Staking is thought to be the next stage in the evolution of digital currencies, moving on from the traditional form of mining to a more energy-efficient way of producing new coins.
Tracking the Authenticity of Products
Aside from being used as a form of currency, many cryptocurrencies have a utility that sets them apart from the others. There are coins that can be used to establish low-cost cloud storage and a variety of other uses. One of the most interesting forms of utility currency are the supply chain coins, which can track and authenticate the history of products. These coins, including Vechain and others, can offer a simple yet affordable solution to companies aiming to prove the authenticity of their products to clients. In the fight against counterfeiting, this type of currency has a lot of potential uses.
Low-Cost Transfers
The original purpose of Bitcoin, as a peer-to-peer financial system, was to provide low cost and easy transfers. While today it has large fees that make this difficult, it’s still cheaper than most alternative money transfer systems. On top of this, there are hundreds of coins, including Stellar, Nano and Litecoin, which provide extremely cheap and fast money transfers with minimal issues for the user. Digital currencies allow you to send money anywhere in the world, a huge advantage for people with family living in other countries. Over time, these currencies will become more widespread than ever, likely taking over traditional forms of money transfer.
Whatever your interest in digital currencies, it’s clear that they have a big part to play in the future of our digital world. Despite their uses, however, there’s still some uncertainty over future regulations and how governments will accept them.