Top Five Important Use Cases of Cryptocurrency

Since the birth of Bitcoin (BTC), virtual currencies have come a long way. And now, in addition to the original means of payment, its use continues to expand to a variety of areas.

1.Virtual currency as electronic money

The first is the role of the so-called currency itself. Bitcoin, which has just emerged, was limited to some of its savvy users, including the black market and gambling, for digital payments.

However, the increase in fees due to price increases sometimes left users. Since then, the advent of Bitcoin Cash (BCH), derived by hard forks, has often led to the acceptance of BCH networks as a fast and cost-effective means of payment.

In addition, in the 2017s, the ICO boom led to a sharp increase in the issuance of virtual currencies and tokens. At one time, various cryptocurrencies were mixed up, and the market was booming.

However, there are many projects that are not feasible, and the tokens issued are not touched by factors such as significantly low liquidity, and what remains today is the likes of Dash and Litecoin (LTC). Limited to those that exist before 2015.

2.Currency as collateral

Lending is now one of the most important uses of DeFi (Decentralized Finance). At the same time, lending of legal currencies using virtual currencies has also become more active.

On the Ethereum network, loan services such as Maker, Compound, InstaDApp, and others are actively available. Virtual currency is used as collateral.

Other DeFi such as Dharma and Deeweidex (dydx), as well as centralized finance such as Salt, YouHodler, and Nexo (Nexo), Users can get loans in legal currency by locking up their virtual currency’s own assets.

There are also services that allow you to receive regular profits, such as interest, by depositing virtual currency in the lending application.

3.Digital Collections

The last thing I’m going to look at is the role of the collection. The Non-Fungible Token token (NFT) token has a unique non-alternative feature, which allows it…

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