Practical Uses for Cryptocurrency in Today’s Economy

Cryptocurrencies or “digital currencies” such as Bitcoin, Darkcoin, Ether and Nxt are rapidly gaining in popularity. In fact, according to Vinny Lingham — CEO at Civic.com and Bitcoin analyst — Bitcoin could be close to becoming the global currency.

Over the past 12 months in particular, investors and traders have become increasingly reliant on cryptocurrencies as an alternative to traditional assets, thereby protecting their wealth and avoiding the direct impact of global economic crises.

Why the hype?

Simply put, the appeal of cryptocurrencies lies in:

Allowing users ultimate control over their money

No central authority or bank has control over the currency — it is controlled by the people who use it. Plus, you don’t need an account or “good credit” in order to use cryptocurrencies.

Fast secure global transactions

Transactions can be instantaneous as there is no need to “hold” the funds to ensure they are actually available.

Lower transaction fees

No “swipe fees” are necessary as there is no need for a middleman. Transaction fees are either free or minimal, especially when compared with banks, credit cards and PayPal.

The protection of payment information

Cryptocurrencies are more secure than credit card transactions as no secret information is shared with the merchant — information that can then be stolen and fraudulently used.

High levels of privacy

Thanks to its underlying Blockchain technology, people can see how much a particular Bitcoin address holds but not who the owner of that address is. It’s like having a clear plastic wallet — people can see how much money it contains, but not who it belongs to.

Opportunities for entrepreneurs and existing businesses

Exciting opportunities exist in the cryptocurrency arena especially for entrepreneurs and businesses looking for new ways to reach existing markets, store value, forge a stronger competitive advantage, and offer innovative solutions.

• Retail

Low transaction fees are a great incentive for businesses to accept cryptocurrency payment. Overstock.com, Expedia.com (for hotels), Tesla and Virgin Galactic are just a few of the big international names that accept Bitcoin as payment. In South Africa, BidorBuy, Raru and GadgetShop.co.za all accept Bitcoin as payment.

• International transfer of funds

The cost of international transfers is almost negligible, not to mention the fact that transactions are practically instantaneous. This is especially helpful for immigrants wanting to send money to families in their home countries, as well as businesses needing the seamless movement of funds to any part of the world.

• Social Tipbots

Small amounts of cryptocurrencies can be used to “tip” people on blogs, chats and social media. Simply include a cryptocurrency address at the end of your posts and ask for a tip. Applications such as Dogetipbot are becoming increasingly popular.

“Cryptocurrency user adoption is undoubtedly on the rise,” says Mustapha Zaouini, Founder of Fliptin — global provider of ready-made, scalable and easy-to-integrate backend solutions. “The question remains as to how entrepreneurs and businesses can navigate through this blockchain revolution in what is still essentially a wild west for cryptocurrencies. Partnering with specialists such as Fliptin will allow you to benefit from new technologies without the associated complexities of integration .”

Want to know how Fliptin could help your organization deliver new technology to the market? Contact us today for a free consultation at info@fliptin.com