Cryptocurrency has become very popular in recent times, with several new ones popping up and others vanishing. Having all these different cryptocurrencies available makes deciding on which currency to invest in a tricky thing. Despite its naturally constant price fluctuations, the interest surrounding cryptocurrency is still growing. The ‘high risk, high reward’ disposition of investing in cryptocurrency attracts people due to the possibly low starting capital needed for several new cryptos in the market.
A major selling point for any digital currency is its usability. If services and goods accept transactions done with a specific cryptocurrency, its value will surely increase. In this article, we will look at five cryptocurrencies that are usable for purchasing goods and services. Seeing a cryptocurrency’s practicality and integration into society is a key factor in its growth.
As the first major cryptocurrency market, Bitcoin is still the most popular and usable digital currency today. Bitcoin was made to be used for more regular transactions, and more establishments accept it as viable payment due to its high value. The first product paid for by Bitcoin was a box of pizza, which sounds ridiculous now due to its current high value, but this was a huge step in people’s view on cryptocurrency. Because of this, people started to take cryptocurrency seriously. Today, the value of Bitcoin is considerably high, making it difficult to invest, and a large part of that value is due to its usability.
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Released in 2014, Ethereum was made to ‘dethrone’ Bitcoin. Creator, Vitalik Buterin, wanted to develop a cryptocurrency with all the features of Bitcoin without the issues. Simple things like transaction speed and easier direct exchanges. Ethereum runs on decentralised apps, meaning all transactions are between only two parties, rather than having a mediating third party. The speed of transactions helped make Ethereum a more usable cryptocurrency, and as the value rises, the usability will too.
The key feature of Monero is that it keeps transactions anonymous. This key feature changes the way it is used as a whole. Because of this, the uses of Monero are more focused on money transfers and asset exchanges. A big issue they have is the regulation through anonymity because even the regulators cannot see the details of each transaction. While the usability is limited, it does have a more specific purpose.
Ripple, or XRP, works with certain financial institutions to create a more efficient experience for financial transactions. Lower currency rates at real-time exchanges are one way it does this. The primary use of XRP is to be an intermediary between digital and physical currencies. It is even improving cross border transactions by making them faster and simpler. The usability of XRP goes beyond the basic day-to-day transaction and is more valued on a larger scale.
Named after the world’s first computer programmer, Cardano was made to be a high speed and low energy consumption cryptocurrency. From the concept of its creation, it was evident that the developers’ goals were to start a cryptocurrency that would affect the world on a larger scale rather than on a day to day basis. Much like XRP, Cardano’s uses are more focused on large transactions. Its high speed and low energy consumption allow lesser developed countries to transact through this digital currency. Its value will continue to rise with the importance of cryptocurrency growing on a global scale.
After looking through these five cryptocurrencies, we see that usability is a large range of things. From buying pizza to developing cities, investing in a cryptocurrency will always depend on the purpose of the currency and how that aligns with what you want to do with it. With the constant influx of cryptocurrencies, it would not be surprising to see this list updated very soon.