▶️ The Use Cases For Different Cryptocurrencies | EP#370
I use coins like BCH and DASH for low fee everyday spending, BTC for long term holding, ETH for investing in development, and much more. Let’s dive into the different use cases for different cryptocurrencies and how I view them from a user perspective.
I think it’s important to break this down because many people get confused about different cryptocurrencies and why it matters to look at different ones for different reasons. Some people have the misconception that they’re all just speculative investments and do not offer any underlying products, but that’s not true. There are many different consensus models, tokenomics, and much more that make cryptocurrencies very different thus serving different purposes.
The different categories, reasons to invest, and examples are listed below:
Store Of Value - Value achieved through scarcity, appreciating assets to hedge against inflation, treated like digital gold – BTC (Bitcoin) and other sound scarce cryptocurrencies.
Development – Projects are building on this blockchain and there are many use cases now and to come in the future – ETH (Ethereum) and other projects similar to it.
Supports Non-Fungible Tokens (NFTs) – There are certain blockchains that support and enable the use of NFTs such as collectibles on blockchain like Wax using EOSIO or Enjin on Ethereum.
Decentralized Finance (DeFi) – This refers to yield farming, lending, and anything you could do in centralized finance now supported in a decentralized way. Most of these projects are currently on Ethereum, but DeFi is not unique to or restricted to Ethereum.
Create Your Own Token – There are many blockchains that enable you to create your own tokens like on Bitcoin Cash with SLP tokens, Tron with their tokens, or Hive and Steem engine with their tokens.
Crypto Tokenized Assets – There are many tokenized assets popping up in crypto like art, gold, and real estate. While there are lots to invest in and take advantage of, I’ve mainly focused on real estate so far investing in RealT which tokenizes properties on Ethereum.
Everyday Transactions – For regular spending day-to-day, I rely on fast transactions that have no fees or fees that are negligible. For this, I rely on DASH for the ease of use, but Litecoin and Bitcoin Cash are also great solutions for fast, zero-fee transactions.
Staking – There are many ways to stake and earn from staking. I will cover all of the intricacies in the future, for now, refer to these coins as examples: BTMX, FET, LOOM, FRM, TRX, ALGO, XTZ, and HIVE.
Crypto ETF & Index Funds – These two cryptocurrencies invest in multiple coins so that you can get exposure to many different cryptocurrencies by investing in one single coin similar to how an index fund or ETF works in stocks. I invest in C20 and STA for this. STA does a little bit more by rebalancing, but they both will give you more exposure in an easy way.
Platform Specific – There are many networks that have cryptocurrency specific to their platform and is part of the functionality of the platform in a useful way. For example with LBRY, you use LBC for supports, publishing, tipping, and more. Examples of platforms with their own cryptocurrencies and networks are Hive, Steem, and LBRY.
Privacy Coins – There are many ways to pay fees to make your transactions more private like using Coinjoin or coin mixers, but there are also privacy coins like Monero and Dapscoin. There are also some coins with privacy capabilities and features like DASH which deserve a shoutout too.
I’m sure I’ve missed a few categories and many coins that can go into each since I’ve such applied examples of what I’ve invested in myself. I would love to hear from you though, let me know in the comments what coins you’re investing in and why? What use cases or coins have I missed? Do you disagree or agree with anything I’ve said? Let me know why and all your thoughts below and don’t forget to like, share, and subscribe as well!
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The main crypto platforms that I use today are LBRY, Publish0x, DTube, 3Speak, ****ute, Flote, Memo.cash, Read.Cash, Minds, and Uptrennd. I also actively use Twitter. You can find me everywhere as @ScottCBusiness
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