Economy
5 Real Use Cases of Cryptocurrency
Cryptocurrency and blockchain technology is one of the major advancements witnessed in recent times. Digital currency is almost taking the place of physical money due to its advantages.
Today, the crypto market is worth over a trillion US dollars. Crypto has gained mass adoption while its popularity has increased despite its ups and downs. The number one cryptocurrency, Bitcoin, has become a legal tender in El Salvador (2021) and the Central African Republic (2022). The volume of Cryptocurrency holders continues to grow because, unlike fiat cash, it’s accessible to everyone. Taking Bitcoin as an example, you can easily buy bitcoin with gift cards.
Although Bitcoin, Ethereum, and other cryptocurrencies have enjoyed huge success, many still don’t know about cryptocurrency.
In this post, we’ll learn about cryptocurrencies and their real use cases. Those who have been in the dark will see the opportunities that abound in cryptocurrency.
What is Cryptocurrency?
Cryptocurrency is a digitally encrypted, decentralized currency that is not linked to or regulated by any government or central bank.
It is based on blockchain technology, which is a distributed ledger framework. Bitcoin is the first cryptocurrency created which has led to the creation of others alike known as altcoins. It was created by an individual with the pseudonym Satoshi Nakamoto as a solution to the global financial crisis of 2008.
Cryptos are categorized as virtual or digital currencies. They were originally developed to provide an alternative mode of payment for online transactions.
Cryptocurrencies are highly volatile which makes it very risky to invest. This is one of the reasons many nations of the world are yet to adopt it.
5 Use Cases of Cryptocurrency
Here are the major reasons many people today own cryptocurrency. If your question has been about what you can do with cryptocurrency, then you need to read this.
- Low-Cost Money Transfers
One of the biggest advantages of bitcoin is that, compared to other electronic payment systems, it has a very low transaction cost. Bitcoin’s transaction fee is not nearly as costly as the fees on money transfers brokered by banks, credit cards, and commercial software.
Bitcoin is used by immigrants to send money home to their loved ones at a low cost. This is one of the main reasons countries like El Salvador & the Central African Republic turned to Bitcoin for their citizens. BTC allows immigrants to send cheap, practically-instant remissions.
- An Alternative Store of Wealth
Cryptocurrencies such as bitcoin can be used as a store of wealth just like your physical money. Cryptocurrencies are stored in wallets that cannot be accessed by anyone else.
While your bank accounts and assets could be frozen, that cannot be said of crypto in your wallet because only the individual with the private keys to the digital wallet can have access to it.
You can buy crypto assets to hold for a short or long-term basis. If you decide to trade your crypto asset then you’ll need a place that meets your requirement.
Prestmit is one of the best digital exchange platform to trade cryptocurrency
- Make Private Transactions
Many prefer to make transactions today with cryptocurrency as it cannot be traced by anyone. Cryptocurrency enables users to make anonymous financial transactions.
That means individuals can make money transfers without having to explain to a bank why they are sending a large sum of money, what the sources of the funds are, and to whom they are sending it, which can delay the transaction and involve unnecessary bureaucratic processes.
- Travel the World & Beyond
Cryptocurrency has grown since it was officially launched in 2009. Digital currencies are accepted as payment for travel. Top travel agents accept Bitcoin as a payment method to book flights, car rentals, and hotels.
The growth of the bitcoin ATM market also means travellers are now able to convert their cryptocurrency into local currency in most major cities around the world. If you’re not the type that doesn’t want to move around with physical money, then this should be a good option for you.
Crypto assets such as BTC, DOGE, ETH, and so on are available all over the world. You can sell Bitcoin in Nigeria and other top crypto assets on your visit. This is how far crypto has really grown.
- Payment of Goods & Services
Bitcoin and other crypto assets like dogecoin are being used for payment of goods and services both online and physically. Tesla, NBA’s Mavericks, and many other companies now accept dogecoin for goods & services.
With bitcoin, you can buy luxurious cars like Lamborghini while Elon Musk’s Tesla will soon accept BTC for its electric-driven rides. You can also buy a range of other luxury goods such as art, fine wines, and real estate with cryptocurrency.
You’ll need to get the latest bitcoin news in Nigeria if you really want to make use of cryptocurrency. Crypto traders whether beginners or veterans need to be updated so as not to miss out on these enormous opportunities.
Conclusion
Cryptocurrency has several real-world use cases that make it one to own by many people in the world today. Its real-world use cases are also the reason it is seen as the future of money.
Cryptocurrency investment is the riskiest form of investment. If you must invest in it, make sure you put what you can afford to lose as return on investment is not guaranteed. Also, note that this article is not for financial advice but for educational purposes.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) has introduced a 1.5 per cent stamp duty on eligible virtual asset transactions, with the tax deducted directly from the cryptocurrency purchased before it is credited to the buyer’s wallet.
According to the new guidelines issued on Monday, anyone buying Bitcoin (BTC), USDT or other cryptocurrencies in Nigeria will receive fewer digital assets due to the deduction.
This requires registered crypto exchanges and other Virtual Asset Service Providers (VASPs) to withhold the levy in the digital asset being traded and remit it to the government, marking Nigeria’s most comprehensive move yet to bring cryptocurrency transactions into the country’s tax net.
Unlike traditional taxes deducted from a customer’s bank account, the 1.5 per cent charge will be taken from the cryptocurrency itself, meaning buyers will receive less Bitcoin, USDT or other tokens than they paid for.
The tax body stated that “income tax deducted at source and stamp duty shall be remitted to the service in the originating token of the transaction.”
Besides the new stamp duty, the guidelines also clarify how income tax, Value Added Tax (VAT) and other tax obligations will apply to virtual asset activities such as trading, staking, mining and other crypto-related transactions.
To illustrate the new rule, the tax authority said a buyer who pays N1 million for one Bitcoin will receive only 0.985 BTC after 0.015 BTC is deducted as stamp duty and remitted to the government. When that Bitcoin is later sold, the next buyer will also have 1.5 per cent deducted from the cryptocurrency credited to their wallet.
The NRS said the guidelines are intended to provide clarity for taxpayers, crypto exchanges, peer-to-peer (P2P) marketplace operators, financial institutions, tax consultants and all participants in Nigeria’s virtual asset ecosystem.
According to the guidelines, the 1.5 per cent duty applies to eligible virtual asset transactions facilitated through registered exchanges and other recognised intermediaries. Where a cryptocurrency is used to complete a transaction that already attracts stamp duty under the law, the applicable duty on the underlying instrument will also be payable.
For crypto users, the implication is higher transaction costs, as eligible purchases will attract the 1.5 per cent stamp duty, while VAT on exchange service fees and income tax on taxable gains may also apply, depending on the nature of the transaction.
By Adedapo Adesanya
The Naira opened the week on a positive note, as it appreciated against the US Dollar by N3.39 or 0.25 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, August 3, to N1,364.83/$1 from N1,368.22/$1 last Friday.
However, it suffered a marginal decline against the Pound Sterling in the official market during the session by 10 Kobo to close at N1,837.89/£1 compared with the preceding session’s N1,837.79/£1, and lost 6 Kobo on the Euro to sell at N1,573.93/€1, in contrast to the previous trading day’s N1,573.87/€1.
At the black market segment, the Nigerian currency traded flat against the Dollar yesterday at N1,405/$1, and at the GTBank forex counter, it was unchanged at N1,374/$1.
Interbank FX transactions increased sharply as market makers’ activities raised total Dollar volume exchanged to $137.048 million, more than 132 per cent above $58.990 million in turnover at the previous close. The surge in turnover was driven by increased deals at the NFEM window. The central bank reported that deal count at the interbank FX window rose to 138 from 67 on Friday.
As for the cryptocurrency market, major tokens advanced despite ongoing uncertainty around unresolved Coldcard wallet sweeps that have drained hundreds of Bitcoin (BTC), while traders are watching whether bitcoin can hold above $63,000 through the US session. BTC rose by 1.70 per cent to $63,765.88.
Bitcoin treasury firm Strategy disclosed Monday it sold 1,638 bitcoin for about $105 million between July 27 and Aug. 2, its third sale of 2026, per an SEC filing.
Also, an attacker has moved about 1,816 bitcoins, or roughly $114 million, from more than 5,200 addresses since July 30 in a fourth wave of sweeps targeting BTC in Coldcard-generated addresses.
Cardano (ADA) appreciated by 6.7 per cent to $0.1959, Binance Coin (BNB) gained 1.5 per cent to sell for $590.82, Solana (SOL) jumped by 1.3 per cent to $73.72, TRON (TRX) soared by 0.9 per cent to $0.3286, Dogecoin (DOGE) also grew by 0.9 per cent to $0.0703, Ripple (XRP) advanced by 0.5 per cent to $1.07, and Ethereum (ETH) rose by 0.4 per cent to $1,863.33, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
By Dipo Olowookere
Bearish investor sentiment on Monday could not keep the Nigerian Exchange (NGX) Limited in the red territory, as the bourse closed higher by 0.18 per cent.
According to data from Customs Street, there were 25 price gainers and 38 price losers, indicating a negative market breadth index.
Eterna expanded by 10.00 per cent to quote at N36.30, Caverton also improved by 10.00 per cent to N5.50, Omatek soared by 9.88 per cent to trade at N1.78, AVA Capital grew by 9.70 per cent to N9.05, and Vitafoam Nigeria appreciated by 7.90 per cent to N194.00.
Conversely, Ecobank declined by 9.95 per cent to N80.10, Cadbury Nigeria went down by 9.92 per cent to N58.10, Thomas Wyatt slumped by 9.82 per cent to N3.95, Coronation Insurance depreciated by 9.80 per cent to N2.30, and CMFC dipped by 9.79 per cent to N3.50.
Yesterday, market participants transacted 923.0 million stocks for N37.9 billion in 72,544 deals compared with the 943.0 million stocks worth N46.7 billion traded in 55,480 deals last Friday.
This indicated that the number of deals increased by 30.76 per cent, the trading volume shrank by 2.12 per cent, and the trading value dropped 18.84 per cent.
Access Holdings was the most active equity on the first trading day of this week and month, with a turnover of 166.6 million units worth N4.4 billion. Honeywell Flour sold 93.6 million units for N1.6 billion, Sterling Holdco exchanged 57.1 million units valued at N455.4 million, Universal Insurance traded 51.8 million units worth N45.8 million, and Chams transacted 33.8 million units valued at N152.5 million.
But when trading activities ended for the session, the All-Share Index (ASI) went up by 446.85 points to 245,730.53 points from 245,283.68 points, and the market capitalisation jumped by N289 billion to N158.615 trillion from N158.326 trillion.
