9 Potential Future Uses of Cryptocurrency

Any asset is only as valuable as it is useful. Sure, you may argue that fiat money has only a transactional purpose, but no one can deny its role in today's world. On the other hand, cryptocurrency has the potential to be much more. It could reshape the future that we will live in, and here are the top nine examples of how this could happen. 

1. International e-commerce purchases

You sometimes lose so much money on exchange rates when buying items abroad. Regardless of buying the target currency directly or having the platform make that conversion in your stead, the result will never be in your favor. However, it’s worth pointing out that the platform making the conversion usually results in the least favorable terms.

With the use of cryptocurrency, you can just skip this part, as well as enjoy paying low transaction fees. Another thing you should keep in mind is the relevancy of reducing middleman fees since cryptocurrencies operate on a DeFi market. 

Ultimately, as an e-commerce platform, you should offer additional payment options to your audience. Tech-savvy customers will appreciate the option to pay with cryptocurrencies. 

2. Remittances

In 2022, remittances reached a record of $840 billion. While most of this money wasn’t sent via crypto, this would have probably been the best way to do it. Why? Well, because of the low fees, immediate transfer, and the fact that you can transfer it directly to anyone with a phone and a crypto wallet back home.

Remember that it won’t be long until people sending remittances back home find out. This means that there’s a market worth hundreds of billions that cryptocurrencies could expand to. Combined with some other reasons on this list, this gives a bright future to cryptocurrencies as a trend.

Even more importantly, remittances are rapidly expanding, meaning this market will only grow in value. 

3. Supply chain management

A supply chain is an incredibly complex part of your business, with many moving parts. This means that there’s a potential for many things to go wrong at any point. This is why the transparency and traceability that come with blockchain technology make such a difference.

Cryptocurrencies can also facilitate real-time tracking of goods through the supply chain (not just GPS tracking them in transit). As products change hands, the cryptocurrency tokens can move within the blockchain and even change form. This way, you’ll get a clearer picture of what’s happening.

Not to mention that waiting for the transfer may become a serious bottleneck in the supply chain. With the help of instant payments through cryptocurrencies, you can easily eliminate this once and for all. 

4. Major investment asset

If there’s one thing that cryptocurrencies have demonstrated, it’s the fact that they have a massive potential for growth. Early on, the value of a single Bitcoin was measured in cents, only for its value to reach over $65K at one point. The bottom line is that while this kind of ROI increase is unlikely, it’s possible.

As we’ve already mentioned, many different coin types are out there. From stablecoins, less volatile, to ICOs, which promise a huge risk and reward. It all comes down to your investment objectives. 

This way, you should always be on the lookout for new coins to invest in. Do your research and set up an investment fund for these new coins. This way, you can seize the opportunity when you recognize it.

5. Donations

When donating to a noble cause, it’s much easier to do this by using cryptocurrencies as your preferred means of payment. Why? Well, transactions are immediate and free. There are no intermediaries. Many people are reluctant to donate, believing that the majority of the money they send goes to state the needs of the bureaucracy running the project. 

Many people are donating to foreign or international causes, and the fact that this means of sending money is great for international transactions makes it more convenient. If you want to donate to a local community half a world away, you can easily do so. 

Generally speaking, cryptocurrencies empower non-profit organizations by allowing them to tap into the independent market of DeFi.

6. Crowdfunding

There are many reasons why cryptocurrencies are so amazing when it comes to crowdfunding. First, they’re globally accessible. Anyone with a smartphone can open a crypto wallet and make payments across the globe. This means that your potential pool of donors grows drastically.

Second, there are fewer intermediaries. This is especially important because many funds get lost on these fees and intermediaries. With cryptocurrency-oriented crowdfunding, you’ll have a much easier time optimizing these investments.

Then, there’s something to be said about the use of such an innovative fundraising model. This is especially the case in the tech industry. By going above and beyond to include crypto as an option, you’ll appear more trustworthy in the eyes of your investors. 

7. Gaming industry

Cryptocurrencies are already widely used in the gaming industry. For instance, they’re already used for in-game purchases for items, skins, characters, and different assets.

Through NFTs, you can get ownership over digital in-game assets. You can sell and trade for them, but, most importantly, prove that these items are in your legal possession.

Then, there are a lot of play-to-earn games, which provide you with small amounts of cryptocurrencies (usually in-game tokens) for playing. This way, they’re increasing their tokens' utility and customer base (by incentivizing it).

Since fans of video games and e-sports teams are growing more and more fanatical, crypto tokens could serve as a great potential fan engagement tool for developers. They could easily increase loyalty by decentralizing gaming platforms and creating this reward system. 

8. IoT transactions

IoT (the Internet of Things) is no longer a distant concept; it’s the reality that we live in. Just think about how many products are currently connected to the internet and think about the potential for future interactions.

You can manage rent and utilities far more effectively by combining smart contracts (which heavily rely on blockchain technology) and smart home payments. With the help of IoT asset tracking and ownership, maintenance and accountability for these valuable assets will be a lot easier to regulate.

With the help of cryptocurrencies, this model will be more secure and less prone to abuse. It will decentralize microtransactions, allowing for much higher monetization and profitability. For an individual user, it will raise the convenience of accessing new features to a whole new level. 

9. P2P energy trading

With more homes and businesses creating their energy, there’s a need for a solution regarding the surplus of this power. In the past, some utility companies allowed these users to sell the power back to the grid. This power they would later sell to other users.

Well, wouldn’t it be better if the users who produced this energy could sell it directly to the buyer without needing the utility company as an intermediary? The only problem is that the fees for this would be potentially high, but what if one could make these trades using cryptocurrencies?

This is something that we might see in the future.

Cryptocurrency is an amazing tool that’s still to be fully utilized

Cryptocurrencies have a potential that drastically exceeds their current use. As our world grows increasingly digital and decentralized, we might get to sample some of this increased utility. Those who accurately predict some of these trends may reap the benefits of early adoption. Others will have to catch up.

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