The word Cryptocurrency is well used in modern society, and while there is a huge market for investors, there is a very good chance that you may have only heard of Cryptocurrency and might not know what it is. This article will give you a short rundown of what Cryptocurrency is and how it is being utilized in the mainstream.
What is Cryptocurrency?
Cryptocurrency is a type of currency that is entirely digital. There are many different currencies of ‘crypto’, well over one thousand at the current count, and growing every day. The most well-known is Bitcoin (also known as BTC) which for many people is synonymous with the word ‘cryptocurrency’, but there are other ‘big names’ as well, like Ethereum (ETH) and Tether (USDT).
These currencies are often thought to be for online use only, but in reality, they can be used for many things. Much like other normal currencies, such as the dollar or the pound, Cryptocurrency can be exchanged into other kinds of currencies for use in everyday life.
Cryptocurrency has hit the headlines for its huge and sudden (in financial terms at least) increases and decreases in value; for example, (as of 29 March 2022 at 13:30), if someone had ten Bitcoin, they would have approximately $478,761 (USD).
These rates are constantly changing, so if this same person had ten Bitcoin on 10 March 2022, they would have approximately $499,860.30 (USD), meaning that their money would have lost the value of $21,099.30 (USD) within this time. However, if they had originally bought that ten Bitcoin in December 2015 for just $6870.20, they might not be too worried.
What is Cryptocurrency’s purpose?
Cryptocurrency is the same as any other currency in regard to its purpose. It is a value that can be exchanged for goods and services; however, this is generally paying out huge sums of money over the internet.
It can also be used as a trade-in, for example, a cheque. You can sell your Crypto for what it is worth in money to other investors, but the market might fluctuate, meaning that you may have lost out on a lot of money. Or, the currency rates might go down, meaning that you might have cashed in your Bitcoin, or your Tether, at the most opportune time.
Cryptocurrency in the mainstream
As with all investments, there is a potentially high level of risk, but it can also be used as an exchange, meaning that you might be able to buy cars, etc, for a certain amount of Bitcoin, and instead of getting paid in Dollars or Pounds or Yen, you will be given the car, much like if you had paid with it in your countries currency.
This just means that the business now can invest in bitcoin, meaning that they might have lost out on the deal, and technically, you got the car for cheap, or you might have overpaid. Either way, a level of risk is involved, but it is essentially just another currency that you can use.
What are the different uses of Cryptocurrency?
As mentioned above, there are a few different uses for Cryptocurrency in the modern-day world. As more people invest in Crypto, the more common it will become in everyday life. It wouldn’t be a shock if, in a few decades, it might become one of the main currencies for everyday purchases simply due to its international usability, but only the future will tell if this is correct. Here are some things that Cryptocurrency can be used for in the mainstream right at this very moment.
#1 Online slot games
You can use cryptocurrencies at many forward-thinking online casinos with huge ranges of slots (although they are usually converted into local currencies for wagering). The latest slots are available at sites such as Crypto Bets, which means that pretty much anybody can find something that is a good fit for them regardless if you usually play slots or not. This is because the range on offer will cover a variety of tastes and budgets, so it should work whether they have made it big with digital currencies or not.
#2 Online shopping
As mentioned earlier on, you can pay for cars and other things worth huge sums of money using Crypto. For example, you could buy diamonds with it or Elon Musk’s ‘Tesla’ cars can be purchased with Crypto. It can also be used at a number of major online stores, as well as many independent operators. (Shopify has an add-on to their payment module that can deal with this). Again, the appropriate sum is typically subtracted from your e-wallet and converted to the store’s local currency to complete the purchase.
#3 Investing
As mentioned above, it can be used for investing. Much like using a high-risk ISA, parents can buy Crypto in an attempt to allow their child or grandchildren to accumulate wealth, to be cashed in when they get to a certain age, or the market is right. Of course, they do run the risk of losing out on money, but that is all part of the investing process. It is also traded like all currencies, using similar principles to Forex trading.
