In this article, Greg Rogowski, founder of Mining City, reviews several ways to use digital currencies. Even with cryptocurrencies gradually becoming part of the mainstream, most people are still unaware of the numerous uses for Bitcoin and other crypto.
Mining City is a platform that provides hash power to those interested in mining cryptocurrencies who do not want to invest in expensive hardware and bear operational costs. As Rogowski’s platform is often the first contact between beginners and the world of crypto, he is used to answering various questions.
Among the most frequent ones are questions about alternative uses of cryptocurrencies. We have asked Greg Rogowski to select ten options for crypto owners.
1. Spend it
Cryptocurrencies can be used as a currency! They are widely accepted as a form of payment at multiple vendors, both online and in-store. Xbox, PayPal and other global companies have already implemented or intend to enable cryptocurrency payments on their platforms.
“If you want to buy coffee, clothes, a house or even that supercar with the BTC license plate, you can do it with crypto,” says Greg Rogowski. “Numerous crypto projects are setting up their marketplaces and platforms where only crypto payments are accepted. You can also use search engines such as spendabit to look for products available to purchase with Bitcoin.”
2. Lend it
The advent of decentralized finance (DeFi) has opened up new opportunities for people to use their cryptocurrency. Through platforms such as Aave and Maker, it is now possible to lend your crypto and earn interest on it.
DeFi is a revolution that allows everyday people to lend and invest their money (or crypto) in the same way banks do. “Thanks to smart contracts and the secure nature of the blockchain (and the hard work of brilliant people), anyone can take or offer a loan without having to rely on traditional financial institutions,” he adds.
3. HODL it
Many cryptocurrencies can be used as a store of value (just like gold). HODLing (or holding) is a popular strategy employed by crypto users as it is simple and, theoretically, hassle-free. However, it can be stressful for avid followers of the crypto market, with the volatile and seemingly random price fluctuations. It gave birth to the maxim that HODL actually stands for Hold on for Dear Life.
4. Buy Mining Plans
One of the fundamental processes associated with cryptocurrencies is mining. But due to the increasing difficulty, high electricity costs and specialized equipment needed to carry it out, it is virtually impossible for most people.
However, many solutions can take the guesswork out of the mining process. Mining City is one of them. It offers mining plans. Members who bought them can participate in mining of different cryptocurrencies.
5. Stake it
Staking is a process that allows you to participate in securing the PoS blockchain network and gain rewards. You don’t need any specialized equipment or huge volumes of electricity. All you have to do is acquire some coins you wish to stake and hold them in your wallet.
“In traditional staking, you would need to leave your computer running with your crypto wallet open 24/7 to maximize your rewards, something which is still unviable for many,” Rogowski explains.
There are staking pools and other online solutions which do not require the user to have their computer running. Mining City is one of the platforms now offering staking programs through its website.
6. Send money around the world
International transfers were one of the first uses of cryptocurrencies. Traditionally, such transactions are expensive and lengthy.
“Whether you’re sending crypto to someone standing five meters away or to someone on the other side of the world, the transaction fees and processing time will be the same,” emphasizes Rogowski.
He also points out that traditional remittance companies charge high fees and require long waiting periods. “It can be detrimental to many users from poorer nations who depend on the income they receive from a family member working abroad. Cryptocurrencies help solve this problem and de-monopolize the industry.”
7. Travel the world
Cryptocurrencies are now more useful in everyday life than ever before. Announcements of mainstream services incorporating crypto payments are becoming increasingly regular.
You can book a flight to anywhere in the world through websites such as AlternativeAirlines and pay with crypto for your ticket. Major travel agencies like Expedia also accept cryptocurrency payments.
With the ability to pay in cryptocurrencies and Bitcoin ATMs that allow you to exchange cryptocurrencies for fiat currency, you can now travel the world with nothing more than cryptocurrencies in your virtual wallet.
8. Participate in unique projects
Cryptocurrencies allow you to take part in crowdfunding projects and invest in unique, previously unavailable ways. Thanks to tokenization, it is possible to purchase a small share of a certain object, project or idea using your crypto.
Some forms of tokenization are:
- NFTs (non-fungible tokens): represent a unique collectible item on the blockchain. Platforms like OpenSea allow anyone to purchase NFTs.
- STOs (Security Token Offerings): allow anyone to invest in certain assets in a similar way to stock or commodity investments, but with the added security of their investment being recorded to the blockchain.
- ICOs (Initial Coin Offerings): allow for the crowdfunding of certain projects in exchange for tokens, but do not give ownership of the project in any way.
9. Use it for gaming
One of the more established uses of crypto is in gaming. Major blockchain-based games like CryptoKitties, Axie Infinity as well as many poker and gambling sites are all achieving widespread success.
Many games not only allow you to spend your crypto in-game but also enable you to earn it!
Play to earn is a new revolution taking over the blockchain gaming world. People are currently able to earn cryptocurrency in-game by completing missions, unlocking achievements, doing certain tasks, etc.
10. Be your own bank!
Last but not least, one of the best ways to use your crypto is for its original purpose. “Bitcoin was created to offer an alternative to the traditional, corruptible financial establishments. To this day, nothing offers the same level of financial freedom as cryptocurrency,” says Rogowski.
“Before Bitcoin was invented, the concept of being your own bank involved doing something like stuffing a mattress full of cash. Although this seems like a safe bet, through hyperinflation, it is possible for the powers that be to devalue that money leaving you with nothing but a mattress full of worthless paper.”
Rogowski explains that, on the other hand, the inflation rate of a cryptocurrency is generally hard coded to its blockchain. “It cannot be manipulated or influenced by any individual or self-serving entity – making crypto one of the most genuine hedges against the banks available.”
Cryptocurrency’s purpose extends far beyond a simple investment opportunity. Vendors, institutions and everyday people around the world are all using crypto in many ways. Whether you wish to explore the world, secure a mining plan, revolutionize an industry or buy a fancy new car, it is all possible with crypto!
