The Growth & Evolution of Cryptocurrency
Assets of cryptocurrency have evolved since the origination of its first kind, i.e., Bitcoin. From having started as a peer-to-peer payment mode to an extensive number of use cases that precede the base form of these digitized coins, cryptocurrency has undoubtedly seen a steep rise in value and usage.
The Versatility of Cryptocurrency
The concept of cryptocurrency started as early as 2009. The cryptocurrency is handled in the form of digitalized virtual tokens known as crypto coins based on blockchain technology. These coins were solely created to avoid money laundering, counterfeits, thievery and act as a primary mode for several transactional purposes.
From investments to trading, purchase, buying, and selling, cryptocurrencies have gained much recognition and accreditation to the extent that it is not limited to their core utilization. With that being said, Bitcoin being the most prevalently recognized cryptocurrency, has several use cases. In correlation with the current bitcoin price, here are the top 5 use cases of bitcoins.
Top 5 Use Cases of Bitcoin
- Electronic Money (E-Cash)
What started as chipped-based banking instruments such as debit and credit cards by financial institutions under various giant organizations like Visa and Mastercard has now expanded towards digitized monetary tokens in the form of crypto coins under cryptocurrency.
As a form of digital cash, bitcoin is the most commonly sought cryptocurrency holding the value of 1 bitcoin to INR 32,46,898.71 based on current data trends. Though bitcoin during its initial stages of induction were more prominent among industries of gambling and black-market, it soon picked up integrity due to its ongoing demand and gained prevalence over time.
- Programmable Currency
Since bitcoin is a blockchain-based cryptocurrency, it characterizes a more programmable attribute, thereby allowing for articulating the crypto coin in favor of determining criteria. By programming cryptocurrency with the help of smart contracts, it is easy to ascertain several acceptable factors such as security, transparency, autonomy, accuracy as well as cost-effectiveness.
- Safe Mode of Security
Just as how an asset or a property can be mortgaged against a loan as a means of collateral security, Bitcoins can also be used to carry out loan applications and approve and sanction them. Cryptocurrency can also be used as a form of deposit to ascertain yearly interests. In any case, this would mean that crypto coins would be locked in place and cannot be used against trading or purchase.
As with every new idea implemented, there remains the risk of duplicates, counterfeits, and illegitimate attempts at replicating them. Cryptocurrencies and bitcoins are no different, so it is only ideal for an enforced verification process to be implemented to differentiate the genuine from the fake. Hence the need for governance arises. With blockchain management, these rules can be adopted to cross-verify transactions, purchases, and trades that revolve around crypto coins.
Probably the most recreational use case of bitcoin would be to merchandise in the form of collectives or collectibles. In many media-based applications and games, collectibles are a part of their architecture. They provide users with additional bonus features, which can be traded for bitcoins. These collectibles are traded via cryptocurrency, via Non-Fungible Tokens (NFT).
In conclusion, cryptocurrency and particular bitcoins have several use cases that serve various purposes for individuals who wish to explore more options other than investment, trading, and purchases. With the field of cryptocurrency still in its baby steps, most of the use cases have not been utilized full-fledged or brought into effect due to the developing state of its infrastructure.
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