Cryptocurrencies can be used in multiple ways. Here are 5 interesting ways to use cryptocurrency
1. Charity: The urge to contribute cryptocurrency has increased along with its popularity. Users have discovered that donations are a fantastic use case for their cryptocurrency as charity organizations have begun to accept it. Famously, Vitalik Buterin, the creator of Ethereum, gave US$5 million in ETH and US$1 billion to the India Covid Relief fund. Depending on where you reside, donating cryptocurrency may have certain tax ramifications.
For additional information on your precise reporting needs, speak with a competent tax or legal practitioner. According to a report by the cryptocurrency donation site The Giving Block, the following are some excellent reasons why NGOs accept cryptocurrency payments. Diversification. For NGOs, cryptocurrency brings up a new source of donations, boosting the likelihood that their fundraising efforts will be successful—a rise in adoption. Accepting cryptocurrency donations enables NGOs to connect with contributors who may not have previously had a method to give—tax effectiveness. Donors can have more money available for donations by lowering their tax obligations.
2. Remittance: Remittance, a term commonly appearing in talks of cryptocurrencies, is simply moving money from one party to another. Remittances are often payments; however, when used with cryptocurrencies, they frequently refer to individuals moving money abroad.
Traditional payment rails are sometimes costly and sluggish for sending money. International transactions made with cryptocurrencies are often quicker and less expensive. Additionally, using cryptocurrency is occasionally the only choice for those who lack access to banking services or live in countries with restrictions on foreign transactions. Numerous Bitcoin ATMs exist in Guatemala, where users may access their non-custodial wallets and exchange BTC for local money. Additionally, many establishments now accept cryptocurrency as payment.
3.Store of Value: Particularly in locations where the local fiat money may be erratic or unstable, crypto offers a different means for individuals to preserve value. People who live in nations where this is typical can preserve their purchasing power even during periods of extreme inflation by adopting a mechanism like stablecoins. Stablecoins are digital currencies with a fixed value linked to another value, such as the US dollar. This stability enables individuals and organizations to continue conducting business using a fixed-value currency and amass wealth notwithstanding regional market conditions.
4. Managing Identity: You can have a public address where you can manage and control your data using blockchain technology. This technology has been used in various fields, including financial transactions, healthcare, legal records, ownership of works of art, and Web3 online identities.
The blockchain may be the most secure digital solution for preserving vital documents since it is everlasting and irreversible. Additionally, blockchain records are simple to transfer and may be accessed without disclosing the information contained in the address. Unstoppable Domains offers access to a completely managed digital identity through decentralized domain names. You may log in to Web3 applications, websites, games, and the metaverse using these domains as your global login.
5. NFTS: Throughout 2020 and 2021, NFTs attracted much attention. If you’re unfamiliar, NFT is a non-fungible token and refers to an exclusive, immutable digital asset kept on a blockchain. A digital smart contract, known as an NFT, represents a genuine good or service, whether digital or tangible. There are several advantages to NFTs, each with a unique history that can be traced back to the original owner. They support the ownership and authenticity of digital assets. Without intermediaries, artists may sell their work directly to fans. They might serve as a representation of physical goods. The creation of a true digital identity is possible with NFTs. Many sectors, including art, gaming, fashion, and logistics, can benefit from using NFTs.
