Cryptocurrencies: How useful are they to the average person?
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Despite January’s 50 percent drop in value, it seems that Bitcoin and its fellow cryptocurrencies are here to stay. As an investment, they have massive potential, but aside from the chance to add a couple of zeroes to their bank accounts, do cryptocurrencies have any real uses for the average person on the street? Let’s take a look.
In December of last year, property developers Go Homes announced they had sold the first U.K. houses using Bitcoin. And while some might see this as something of a gimmick, the truth is that there’s a significant increase in the number of real estate agents and property developers now accepting cryptocurrencies as payment.
Of course, the rise and fall in valuation make it a risky venture for the merchants. The first house sold by Go Homes went for £350,000, and although the sale contract protected both the buyer and seller from fluctuating currency rates, it seems hard to imagine that a drastic drop in value (like the January one) wouldn’t put a hole in the seller’s pocket.
However, the buying and selling of expensive luxury homes are not quite the everyday use that we had in mind for the average person. So, where else can we expect cryptocurrencies to become an option for smaller, affordable transactions?
One industry where we will most likely see crypto in everyday use soon enough is online gambling. Many gaming companies understand that their punters want fair play and decentralized platforms and cryptocurrency offers precisely that.
In fact, one gaming start-up backed by industry heavyweights has gone a step further and created their own token. CoinPoker uses a new currency CHP, and early indications suggest that it’s a winner. The initial idea for this currency was to provide a secure and stable currency for users of their platform and the CoinPoker mobile app, which could be used in online poker rooms and eventually live events. And with online gambling increasing in popularity in recent years, it’s likely that the CHP will become the chosen token for online gamblers.
But online gaming isn’t the only industry to adapt. Many major businesses, such as Expedia, Newegg and Microsoft, also accept Bitcoin payments for their products and services. But perhaps the most significant of all is e-commerce platform Shopify. The online retailing platform helps over 75,000 merchants sell their wares online, and the chances are you’ve bought something from a Shopify-powered store. The platform allows merchants to accept payments in Bitcoin and has been doing so since 2013. However, it’s only in recent months that store owners have started to use the feature, making the customer experience more convenient.
There are many other uses for the cryptocurrencies burning a hole in the average person’s e-wallet. Uber now accepts Litecoin (no word on Bitcoin yet) while select branches of Quiznos, Subway and Burger King accept Bitcoin. Yet while these are household names, the move toward a society entirely dependent on digital currency is a long way off. Those that accept cryptocurrencies are starting to understand the benefits of doing so, but it will take time for the man and woman on the street to follow suit and jump in feet first to a digital lifestyle. So, going back to our question on the usefulness of cryptocurrencies to the average person, the answer is a resounding yes. While it may be a while before the corner shop accepts Bitcoin, it’s something we can see happening soon.