How many times did you hear from naysayers that crypto doesn’t have any use cases? Most likely, you lost track. It’s about time to put this misconception to bed.
Shivsak, made an illustrated thread about this topic. He’s a renowned Crypto Twitter user and cofounder of magikinvest. Some examples he mentions are already in use. Other examples are ideas that may come true in the future. At its core is blockchain technology. This brings trustlessness to the table. Let’s see what he has to say about crypto use cases.
"Is crypto anything more than a loudly popped bubble?"
I got tired of people asking if crypto has any real, PRACTICAL use cases.
So I wrote down a bunch of practical applications for crypto and made an illustrated guide 🙂
[1/x] 🧵 👇 pic.twitter.com/yBVJqt2nis
— shivsak (@shivsakhuja) May 31, 2022
What Are Crypto Use Cases for Money?
Sending and receiving money is one of the most important use cases for crypto. That is, according to Shivsak and most of the crypto community. He rightly asks if you ever tried using an international money transfer on a Sunday? It shows how difficult and expensive a TradFi payment is.
As a result, crypto unlocks foreign currency exchange. In many parts of the world, they don’t have easy access to foreign currency exchange.
Now, if we look at the current inflation in the US, at 7.5%. That’s not a good number. But other countries have a much higher inflation number.
- Argentina saw 51% inflation in 2021.
- Over the last four years, the Turkish Lira lost 80% of its value towards the USD.
- Venezuela’s inflation was 686% in 2021. That’s much better than the ~65,000% in 2018.
Living in such a country, with a super high inflation, asks for access to the USD. Or another reserve currency. This will preserve wealth. Stablecoins and DeFi are the solution. So, imagine somebody in such a country has access to stablecoins. That also gives them access to 20%-30% APR. No wonder that TradFi makes it very hard to have such exposure. People living in such countries are drawing the short straw.
Crowdfunding is another sample that crypto makes possible. You can turn any of your ideas into a crowdfunding opportunity. In short, crypto makes everything easier when money needs to change hands.
Speaking from own experience. For all my international money transfers, I try to use crypto transactions. USDT or XRP transactions are cheap and fast. Most importantly, you can conduct them at any time, 24/7. At no extra cost. For those of us not living in Europe or the US, the improvements with crypto are even more obvious.
Lending and Borrowing
Anyone with an internet connection has access to crypto lending. The most important fact with this, it’s equally accessible. There’s no discrimination. Religion, gender, or skin color, it’s all equal to a smart contract. It doesn’t matter where you are, or who you are. You have access to borrowing money within seconds. Try this in TradFi.
Currently, crypto overcollateralizes most loans. However, we just published an article showing this trend is changing. This highlights the rise of DeFi newcomers. And they are using Undercollateralized and uncollateralized loans. For instance, like Clearpool, as shown in the picture below.
There’s a similar issue with stocks, derivatives, insurance, index funds, etc. Once more, smart contracts solve this issue. No discrimination and everyone has equal access.
Source: Clearpool Finance
There’s more than just decentralized money. Decentralized trust offers plenty of use cases. You can look into governments. Or how about in general, to decentralize control? Furthermore, it’s also possible to ensure trust in supply chains.
One of the most exciting byproducts of crypto are NFTs. The amount of potential and existing use cases are mind-boggling. Most importantly, they are unique, you can’t forge them. Let’s have a look at some NFT use cases.
- Identity—You can have a variety of trusted digital identities. For example, your passport or driver’s license.
- Voting—You can use your unique NFT vote to vote on anything. From nationwide political votes, to votes in a competition.
- Medical records—Currently in an outdated and easy to forge system. With ‘Soulbound tokens‘ or SBTs, you can’t transfer these.
- Certificates—Diplomas or any other form of achievement. For school, courses, or sport.
- Ticket service—Like concerts/festivals or sporting events. No more ticket scalping. This is in use as we speak. See the picture below of Get Protocol.
- Real estate—You can fractionalize ownership or digitize the entire sales process.
- Art—NFTs offer proof of ownership. So, this includes intellectual property.
Source: Get Protocol
The next time somebody states that crypto doesn’t have any use cases, show them this article. You have some ammunition in hand now to defend the opposite point of view. And, of course, there are more use cases, this is just the tip of the iceberg!
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