Virtual currencies, also known as cryptocurrencies, are more and more widely being used in the financial world. They provide a more secure way of doing direct transactions online. After the initial spike in value, cryptocurrencies have settled down more and are widely accepted for multiple use cases. This makes it convenient for people all across the world to use.

We look into 8 exciting use cases of cryptocurrencies as we see it today.

1. International transactions

As technology has advanced, cryptocurrencies have allowed transactions to take place across the globe. With currencies fluctuating constantly and exchange rates, costs to transfer money internationally are becoming higher and higher.

With virtual currencies such as Bitcoin or Ethereum becoming more widely acceptable, transactions can be made across international borders at a lower cost. Also with traditional banks and financial institutions, transferring money across can take a lot longer, especially when you move overseas. Cryptocurrency trading is often done instantly and can be cheaply converted into a local currency.

2. Online gaming and casinos

The online gaming industry is booming at the moment and is one of the main industries where virtual currencies are widely accepted. For many years now, gamers have been looking for alternative options to the ‘traditional’ routine of signing up with a bank card and making cash deposits into their accounts.

This is why more accessible formats like sweepstakes casinos are so popular these days, since they offer a means for gamers to play the titles they want to play, without making real money wagers. Virtual currencies exist within the game’s ecosystem, rather than outside of it.

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Cryptocurrencies offer something very different to online casinos and games, but the basic premise – that emphasis on security – is the same. Gamers can buy and sell things securely through this platform, and enables people to earn real money that can be transferred into their bank account as they play and win.

3. DeFi and direct, secure transactions

Decentralized Finance, also shortened as DeFi, is a type of financial technology using blockchain that allows people to move away from centralized systems like traditional banks. People can take out loans or trade assets via virtual currencies in a way that’s more secure.

Not only that, but they are also more accessible and transparent compared to a centralized system. It provides a direct e-wallet or system so that you can access money straight away through blockchain technology.

4. Content is King

Digital marketers and writers know that content is hugely important for SEO, but it can be monetized using cryptocurrencies. What that means is that instead of content creators losing a proportion of their money to an agency, they can get directly paid through virtual currency on blockchain platforms.

This means the content creator gets all of the money owed, reduces any fees, and has ownership of their work. It gives content creators more control over how they earn and what they earn.

5. Giving money to charities

Virtual currencies are increasingly being used for charitable donations due to their transparency and ease of use. The use of blockchain technology means that those wishing to donate to charity can track how the money is being spent for the better.

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It’s more secure and transparent, which is perfect for charities, and will encourage more people to give money to charities in this way. Some major charitable organizations have changed their systems so that you can donate with and trade cryptocurrencies. It also enables international transactions, which means there is a wider reach to support the cause.

6. Smart contracts and transactions

One great way that virtual currencies are being used is to create smart contracts and faster transactions. There are many industries where there can be lots of paperwork and a slow, complex process, like getting a mortgage or trying to get a loan.

With cryptocurrencies and blockchain technology, these processes can be less complicated and easier to handle. A lot of the paperwork can be automated, and users can access funds quicker, more cheaply, and be able to monitor things in real time.

7. Smaller, faster payments

A lot of us use smartphones and digital technology to go about our daily financial transactions. Often, when it comes to smaller payments, there can be fees associated, like using an EPOS machine.

By using a virtual currency, or cryptocurrency, for these smaller transactions, it can be more cost-effective and efficient. This can be really valuable for digital content creators, publishers, app developers, or streaming services, where small transactions are being made but they need to be more efficient.

8. Government

The government in the UK is well-known for slow processes and lots of paperwork. With virtual currencies, it can actually make things move a lot faster. In addition to this, when it comes to the voting system, there can be suspicions of fraud and multiple inefficiencies, which can cause an uproar.

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By using blockchain technology in voting, it can add a new level of trust and efficiency so the public has more faith in the system. They are more transparent too, so that every vote counts. This technology can be used in both political elections and organizational situations which also promotes fairness across the table.

Virtual Currencies

Cryptocurrencies can be used for multiple reasons and are slowly transforming how financial transactions are being used across organizations all over the world. Moving away from traditional financial systems, users can experience more privacy, security, and innovative solutions that will help shape the way we use this kind of technology in the future.

As it becomes more widely accepted throughout the world, there’s no doubt that more exciting use cases will come about.