Is the Success of Cryptocurrency Based on Its Utility?

March 31, 2020
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Is the Success of Cryptocurrency Based on Its Utility?

Cryptocurrency is a very new concept, and as a result, there is a lot that needs to be learned in order to understand it. So, with that in mind, how has it become so successful so fast?

The success of cryptocurrency is quite elusive to those outside the crypto community that thrives online. It seems like the crypto world opened up one day when Elon Musk decided to send out a tweet. But that can’t be further from the truth. There are lots of things that have aided the success of cryptocurrency, including the benefits of the technology behind it, the philosophy the technology allows for, and the rapidly expanding uses for cryptocurrency. Take a look at our guide to understand for yourself how cryptocurrency became so successful in such a short amount of time.

Poker Uses Crypto

The problem that has really plagued cryptocurrency since its inception is the fact that there aren’t a lot of practical uses for crypto. You couldn’t do much with it beyond buying a Tesla or a flight from a specific airline. You couldn’t go to the shop and pick up a pint of milk with crypto.

But that might be changing. There are a range of retail suppliers that are taking up the digital currency, including Domino’s, Starbucks, Whole Foods, HomeDepot, Subway, REEDS Jewelers, Juliette Interiors, Yum Brands, Coca Cola, and Bic Camera.

And that’s all without mentioning the great effect cryptocurrency has had on online gambling websites like GGPoker. Players have enjoyed playing with faster transfer times, avoiding the 3-5 working days the banks typically require to approve a winnings transfer, and casino owners enjoy the superior security and the fact that all transactions are final.

Blockchain

The reason there is superior security is due to the blockchain. The blockchain is the mechanism that allows digital currency to exist. Even those beyond the crypto sphere like the idea of using blockchain in our everyday finances to keep transfers secure.

An end-to-end encryption allows blockchain to secure transfers from start to finish, so there is no chance of hackers intercepting the transfer or accessing where it came from. Plus, due to the blocks of data of transfers being automatically added to the “blockchain”, there is an automatic paper trail created, which validates transfers like a receipt would and keeps track of every transfer.

And due to the blockchain’s ability to cloak transfers, anonymity is possible with cryptocurrency, putting to rest a lot of issues around privacy in bank transfers and e-wallet options.

The People’s Currency

There is also a need from the wider public for a new financial system. There are plenty of flaws with the one we’re working with beyond the technology it runs on. It has created an attitude of distrust built around the banks, which cryptocurrency directly tackles.

Cryptocurrency is decentralized, which means it doesn’t go through any national bank. This is what allows for the faster transfer rates mentioned above, but it also allows for a lot more leeway with your money. There isn’t so much red tape around what you want to do with your money. If you want to send it to this person, you only need to remember that all transfers are final and trust what you’re doing.

Crypto also allows for investments from anyone. It’s not a one-to-one comparison, but it is fair to compare crypto to a much more volatile stock market. But unlike the stock market, information and advice is freely given, on Reddit of all places, rather than kept to a select few to gatekeep.

With a massive range of people able to invest, a lot more businesses can get investment and get off the ground, creating a whole new marketplace. 

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