Any conversation offline or anywhere on the internet regarding digital assets often ends up similarly. This is because most online assets have created a reputation of being tradable commodities.
While trading is a significant part of digital assets even for people learning how to trade dogecoin in PrimeXBT, the use of the assets goes beyond the reputation most people have created about them. The blockchain itself owes its success to the growth of crypto.
In 2009, both the technologies were new. The success of crypto over the years pushed the blockchain to the limelight, making it worth considering for other applications.
What Are Some Other Uses Of Cryptocurrencies
The gaming industry has been a significant adopter of cryptocurrencies. Sandbox and Decentraland are a few examples of projects that have turned their attention to web3 by creating metaverses that will depend on crypto for transactions.
While in-game tokens work the same way as other ordinary crypto and are tradable in top exchanges and PrimeXBT, their purpose is to create a seamless trading experience in the virtual worlds. For example, the Sand is a crypto that enables game enthusiasts to create a gaming environment in 3D while in the Sandbox.
Alternatively, gamers who own virtual environments in popular metaverses and have created their gaming experience for interaction with other paying customers can also use tokens as some form of currency. The tokens earned in the metaverse are easily redeemable outside the virtual world.
The Potential Future Use Of The Blockchain
The blockchain has created a creative way for people to interact without the hustle of having to deal with third parties. Unlike traditional database management systems, it has incorporated a series of chains that connect different blocks. Information added to a block remains unchanged and non-erasable until it reaches the second person.
However, a majority of blockchain services require some form of crypto to operate. For example, to interact using the Solana blockchain, users must have sufficient Solana tokens, which are themselves cryptocurrencies that are tradable in big exchanges and PrimeXBT. Interaction in the Solana blockchain costs less than a cent. Noteworthy, each blockchain that exists has its own set of gas fees that help people transact.
The blockchain is synonymous with crypto exchanges. However, other modern applications, such as storage of assets, patents, and data storage for decentralized applications, make it a desirable place to grow crypto beyond its ordinary reputation.
Crypto As A Store For Wealth
Crypto is one of the most volatile assets, as its value keeps on changing within a short period. However, its staggering base makes it a difficult commodity to disappear on a whim. For example, the crypto economy has once touched the $2 trillion mark.
The figure is staggering because, if crypto was a country, it could rank among the best ten economies in the world. Comparing crypto to stable economies is a moot undertaking, but it can work as an option to diversify personal wealth.
Crypto has existed for a decade, and in this period, it has grown to extreme levels. It has surpassed some traditional assets regarded for storage of wealth, such as Gold, in terms of value per unit. The average closing price of gold in 2010 was about $1200, at the same time Bitcoin was about less than a cent.
About a decade later, in 2022, Bitcoin had an opening year price of about $40K. Similarly, gold opened the year worth about $1800.
The figures highlight the pace at which cryptocurrencies have grown, but that does not hide the fact that they are a volatile asset. The post-COVID inflation has highlighted the volatility of crypto assets, which shed about 50 percent of their entire value.
However, the massive downswings also created a new angle that points crypto in a positive light. The instruments can sustain a continued poor run in the economy, though they also need a lot of confidence from investors to have massive bull runs for them to hit new highs.
Previously, poor crypto runs have turned into sustained bullish runs that have pushed the value of crypto even higher. The other side of having crypto, as a store of wealth, is the potential of massive bullish momentums that drive up the value of the stored wealth.
The Sandbox is a notable player in the tokenized gaming space. However, the space is gaining traction fast with other players seeking to make an entry. The many attempts to create gaming tokens will make owning crypto dispensable. The same will happen to other sectors, including big data storage in the blockchain and the use of smart contracts in place of real-world contracts.