What are the types of uses of crypto currency?
Crypto currency is used as one of the means by which payment is made for various goods and services. In addition, it is used for several other uses, including:
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Currency: The original method of using the crypto currency and the most obvious method. It is used to pay for goods and services and estimate the price for them. This is the same case in which other currencies are used, such as the US dollar, the euro, the Canadian dollar, or the Japanese yen. Bitcoin can be used to pay for goods all over the world. If the merchant accepts it as a method of payment.
Use as an alternative: The use of crypto currencies is not limited to payment only, as it can be used as an alternative in the basic system for issuing the currency. The currency differs from being a tool or a money currency. Using it as a tool is considered a way to preserve its value for its holders inside the network, and currencies that have a basic function are used as a currency outside the network. Using the currency as an alternative gives its holder multiple benefits, such as the right to vote in addition to discounts on goods and services on the platform.
Representation of an asset: Blockchain technology allows assets to become tokens with ledgers. Meaning that every real asset can be represented by a fiat currency after it is digital, and we can see the use of this case in fixed currencies such as encrypted currencies called crypto currencies that are supported by other fiat currencies such as the US dollar.
Investment: In some cases, currencies are transformed into investment assets to provide their holder with a financial return, such as placing the currencies in the form of an ownership stake in a company and the shareholder can earn a profit.
It is necessary to be careful because cryptocurrencies may have a mixture of functions, and it is possible that the currency may be fiat or an alternative. At the same time, it is an asset, so it has more than one function.
