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What are the main use cases of cryptocurrencies?

Cryptocurrencies

1. INTRODUCTION

The goal of the article is to explain what cryptocurrencies are for (beyond their —still mainly— speculative use).

I hope you find it useful.

(*) If you want to share any additional reason, leave it on the comments section!

 

2. MAIN CRYPTOCURRENCIES USE CASES

  1. To OWN your money. Cryptocurrencies allow you to have self custody of your own money, so you don’t need anything but an Internet connection and 12 words to have your savings always accessible.
    • No bank/government will decide what you can or can’t do with your money.
    • It allows you to escape a corrupt/authoritarian regime with your life savings (as they are digital assets that can travel with you memorizing 12 words and can’t be physically seized).
    • No bank/government will be able to freeze or take any money from you.
  2. To be able to send money anywhere in the world at any time without asking anyone for permission. Cryptocurrencies are an efficient solution for international remittances. Also, with the right cryptocurrency (such as XNO), it can be done instantly and without fees.
  3. To protect you against inflation/fragility/constant devaluation of traditional currencies. Your conventional fiat money is worth less every year because they print/devalue it with one click. Cryptocurrencies offer an alternative to traditional money through 1) a fixed supply (there are only X amount of coins and no more can be printed) or 2) fixed issuance (a fixed predictable amount of coins are printed each year).

 

3. NOTES AND CLARIFICATIONS

  • Cryptocurrencies ≠ crypto assets  ≠ decentralized digital assets. In this article I only covered the use cases of pure cryptocurrencies. Other crypto assets (or decentralized digital assets) have use cases that go far beyond the idea of ​​decentralized money.

 

4. ANYTHING TO ASK OR ADD?

 

Learner Trip

PhD in Education. I've been sharing all kind of content/information on the Internet for 14+ years now. I try to do it in the most straightforward and reliable way possible, cross-referencing information with the primary sources of authority in each field (unless unnecessary). You can reach out to me in the comments. I read all your inquiries and typically respond to most of them daily. If you find what I do helpful, you can support me here. 🙂

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