Cryptocurrencies are popular for their interesting benefits, including increased security, strong potential for investment returns, and decentralization. These benefits are seen in the average use of digital assets, especially with payments, cross-border transactions, and financial inclusion. However, while these are commendable, several other unique applications of cryptocurrencies transcend the most known use cases users enjoy. The following generally unpopular benefits show that cryptocurrencies while functioning as financial assets, can also be used as trusted tools of societal change.
Supporting Online Casino Payments
Digital assets are already a popular means of payment for goods and services, especially for international merchants. They are also crucial in several other non-commerce sectors, like online gambling. Today’s gaming industry has become so popular it was valued at $84.79 billion in 2023 and is expected to hit $164.53 billion in 2033, according to market research and business advisory firm Spherical Insights & Consulting.
Any interested player can find a new crypto casino to enjoy perks that may not be available on traditional platforms. These advantages include faster transactions, novel variations of popular casino games, better bonuses and loyalty rewards, as well as transparency through provably fair gaming supported by blockchain technology.
Access to Unique Investment Opportunities
Owning cryptocurrencies exposes users to investment options that may be unavailable in conventional markets. Crypto supports fractionalization, such that people can easily buy fractions of large or expensive items, such as real estate and rare collectables. Multiple investors can jointly own an item through fractional ownership and enjoy returns based on the percentage owned. Fractionalization generally democratizes access to otherwise exclusive investments and supports portfolio diversification.
Participating in Decentralized Governance
Many cryptocurrencies function as governance tokens in several ecosystems and allow holders to contribute to decision-making. This ensures that shaping the future of a platform or an ecosystem is based on community effort instead of an action taken by a few managers.
By owning specific cryptocurrencies, holders can decide how to raise and allocate funds, suggest support projects, and contribute to determining the platform’s evolution. This is common among decentralized finance (DeFi) projects and decentralized autonomous organizations (DAOs). Popular examples of platforms that adopt decentralized governance include Uniswap (UNI), Curve Finance (CRV), Compound (COMP), and MakerDAO (MKR).
Reshaping Charity and Donations
Donations and charity work are easier with digital assets. Between June and October 2024, a political action committee (PAC) supporting Donald Trump raised nearly $7.5 million in crypto. Since digital assets are borderless, people across the world can easily use them for all kinds of donations or aid.
For instance, direct donations can quickly be sent to regions affected by natural disasters or war without the common issues with intermediaries and financial regulators. In addition, since blockchain transactions are immutable, all donations and contributions are traceable. Donors can rest assured that their payments reach the intended recipients, making philanthropy efficient, impactful, and transparent.
Supporting Autonomy and Censorship Resistance
Cryptocurrencies help to resist most forms of government restrictions and censorship. For instance, journalists and activists can receive donations to fund their investigative efforts via crypto, which remains beyond the reach of government-imposed barriers. Digital assets allow them to continue their work without fear of financial repercussions.
Also, artists can function with a comfortable sense of autonomy if they do not have to pass their payments through middlemen. Unfortunately, people relying on middlemen remain vulnerable to coercion and are often forced to conform to the demands of these entities. In addition, payments received by creators are considerably reduced after processors and other go-betweens charge processing fees.
Autonomous Identity Management
Several Web3 firms have embraced digital identity management through cryptocurrency and blockchain technology. Owning cryptocurrencies enables users to take control of their personal information using these platforms instead of entrusting their sensitive data to centralized services that are vulnerable to data breaches. This method may also use crypto wallets as secure tools for users to verify their identities without offering personally identifying information. Using crypto-powered identity management platforms helps to reduce the risk of identity theft and gives users control over how their data is shared.