On May 22, 2010 a Florida man paid 10,000 BTC for 2 large pizzas from Papa John’s. That is a $400,000,000 pizza, the most expensive pizza in history. However way back in 2010, Bitcoin wasn’t worth anything – less than a penny for a Bitcoin. This transaction helped pave the way for Bitcoin to grow and be used in commerce.
Year after year the number of daily cryptocurrency transactions is increasing. Just the top two cryptocurrencies alone, Bitcoin and Ethereum, have together topped a million transactions per day for the past few years. The amount of people buying cryptocurrency is increasing. The amount of people coming into the ecosystem is increasing. The amount of people interested in cryptocurrencies is increasing.
Not that long ago, it was to be a common myth that cryptocurrencies were only being used by speculators and criminals. Today, cryptocurrency is much more mainstream with less and less people believing this misconception.
While it is true that speculators and criminals use crypto, they also use and prefer fiat currency. It was another myth, that bitcoins are anonymous which helped contribute to the false belief that cryptocurrency was only for criminals. Bitcoin and other cryptocurrencies often provide more information to law enforcement than cash does, because data is public and viewable on the blockchain.
Below is a small sample of what cryptocurrency is being used for everyday:
- Retail payments – Cryptocurrency is used to purchase goods and services. The most common type of goods and services available are ones purchased online to the tech crowd. Regular brick and mortar businesses accept cryptocurrency also, however it will take a little research to find which ones accept it.
- International remittance – This is a big use case, especially in Southeast Asia and Latin America. Traditionally, services like Western Union needed to be used, and currency conversion rates applied. Some countries find it is cheaper and faster to send crypto for cross border payments.
- Hyperinflation – Hyperinflation is when the purchasing power of a fiat currency rapidly loses value, and unfortunately it does happen in the world. Cryptocurrencies have been a life saver for people in countries that are suffering from hyperinflation
- Salary Payment – Around the world more and more people are being paid for work completed with cryptocurrency. As remote work increases, and people are working together across different countries, cryptocurrency becomes a great way to pay salaries. News broke recently of NFL pro bowl tackle Russel Okung was going to receive 50% of his salary in Bitcoin.
- Defi – Decentralized finance has exploded in recent years. Globally, it is estimated that up to 30% of all adults are unbanked. This cuts off people from financial services that increase the quality of life. DeFi is working to provide access to financial services to everyone, everywhere, regardless of their background – and they are making solid progress.
The list above is just a small sample of what cryptocurrency is used for. Everyday people use cryptocurrency for a variety of reasons.