{"id":53,"date":"2021-08-06T19:21:08","date_gmt":"2021-08-07T02:21:08","guid":{"rendered":"https:\/\/theplandanhollings.com\/?p=53"},"modified":"2021-10-07T14:15:45","modified_gmt":"2021-10-07T21:15:45","slug":"real-life-crypto-applications","status":"publish","type":"post","link":"https:\/\/theplandanhollings.com\/cryptocurrency\/real-life-crypto-applications\/","title":{"rendered":"What Is Cryptocurrency Used For? A Guide to Real Life Crypto Applications"},"content":{"rendered":"\n
Mark Cuban has said the advent of crypto feels like the early days of the Internet. Jack Dorsey says there\u2019s nothing more important for him to work on than Bitcoin. Bill Gates believes digital currencies can open the doors to financial stability for the poor. What does this all mean? Cryptocurrency is the future, and the future is now.<\/p>\n\n\n\n
We\u2019ve all heard about the hype around crypto \u2018going to the moon.\u2019 Still, there hasn\u2019t been very much conversation around what cryptocurrencies can actually do. If we don\u2019t uncover the world of potential applications that cryptocurrencies offer, we could miss out on billions in wealth and progress.<\/p>\n\n\n\n
Luckily for you, I\u2019ve aggregated some of the most exciting applications of cryptocurrency today. Everything from payments, new asset classes, crowdfunding \u2014 by the end of this guide, you\u2019ll even learn how to turn crypto into a passive income machine.<\/p>\n\n\n\n
Put simply, cryptocurrency is a digital currency. Unlike traditional currencies, they aren\u2019t backed or monitored by a central authority like the government or national bank. Crypto runs on blockchain technology, a distributed ledger network that records all the transactions made with that currency and secures it using high-level cryptography.<\/p>\n\n\n\n
Just like other currencies, you can use crypto to buy and sell goods and services online. But cryptocurrencies, and the blockchain technology that underlies them all, have various applications beyond just commerce.<\/p>\n\n\n\n
Traditionally, sending money overseas and around the world was a lengthy, costly, and complicated process. But cryptocurrency can solve all of those problems. Since Bitcoin is more of a store of value than actual currency, we\u2019ll use Ethereum as an example:<\/p>\n\n\n\n
In the past, borrowing money was a long and painful process\u2014credit checks, waiting for approval, high fees. With crypto lending, you can avoid the pitfalls of the current financial system and borrow money peer-to-peer. Cryptocurrency lending platforms have three stakeholders:<\/a><\/p>\n\n\n\n Crypto loans don\u2019t require the oversight of a central bank. They are made secure through smart contracts\u2014self-executing contracts that automatically enforce the terms of the loan.<\/p>\n\n\n\n This leads very well onto our next application of cryptocurrency: high-yield savings accounts. Typically, the savings accounts provided by your bank offer meagre yields that just barely save your money from inflation. Conversely, crypto savings accounts make use of the asset class\u2019 booming nature to make you more money. Many providers offer crypto savings accounts, including cryptocurrency exchanges like Coinbase. These providers will lend out your cryptocurrencies to other people and give you a cut of the interest. <\/p>\n\n\n\n Non-fungible tokens,<\/a> or NFTs, are the hottest talk in town. Tokens, like cryptocurrencies, are a kind of application built on top of the blockchain. Unlike coins, they\u2019re generally not used as money for transactions. Although cryptocurrency tokens can be used as a form of payment, they can also represent equity or an asset. When that asset is one of a kind and unique, it\u2019s called non-fungible. <\/p>\n\n\n\n NFTs have revolutionized the world of art, bringing fine art collection into the digital age. Any form of media \u2014 music, videos, images \u2014 can be turned into an NFT. Although the media itself can be replicated, the NFT represents its unique ownership. It\u2019s very similar to owning an actual Renoir painting vs a Renoir print.<\/p>\n\n\n\n For artists, NFTs have offered a way to turn their passions into their retirement funds. For buyers, NFTs represent a very profitable (if highly speculative) investment opportunity.<\/p>\n\n\n\n Speaking of investment opportunities, cryptocurrencies also serve as a new way of generating wealth and passive income: <\/p>\n\n\n\n These returns don\u2019t exist anywhere else for the public investor. Wealth creation has never been more democratic than it is with cryptocurrency trading. <\/p>\n\n\n\nSaving money<\/strong><\/h3>\n\n\n\n
Non-fungible tokens<\/strong><\/h3>\n\n\n\n
Investment opportunities<\/strong><\/h3>\n\n\n\n