Cryptocurrency is pivotal for modernizing the global financial system.

Janak9955

Experts often point out that, apart from speculation and illicit activities, cryptocurrencies have no practical use.

However, over 400 million people globally (including over 50 million Americans) have already purchased cryptocurrencies. Data obtained from Chainalysis shows that illicit activities constitute less than 0.5% of the total transaction volume. So, what are these people actually using it for?

Indeed, many were initially attracted to cryptocurrencies as an investment, and speculation has also driven many into the market. But what is the underlying reason driving this interest?

In the early 1970s, the United States (like many countries before it) decoupled the dollar from hard commodities like gold. Over the past fifty years, we've seen a familiar pattern play out in the United States: government spending exceeds income because it can "freely" print money, and years or decades later, people pay the price through high inflation and stagnant economic growth.

While the average person may not grasp the nuances of quantitative easing and federal budget deficits, they've tangibly felt the rise in costs of necessities like gas, food, and education. They're increasingly feeling that something is wrong with our economy.

In fact, 87% of Americans believe that the current financial system needs an update, with over half of American youth only occasionally or not at all using the system. This brings us to the first and arguably most important use case of cryptocurrencies: a return to sound money, like Bitcoin.

Like gold, Bitcoin isn't a national currency backed by a single government. Inflation is a regressive tax on everyday people, hitting the poorest the hardest, whether in the United States or elsewhere. Bitcoin, with its fixed supply, offers a solution to this problem. If inventing a digital-native sound money was the only purpose of cryptocurrencies, it would still be a world-changing technology, but it's just the beginning.

Over the past five years, the crypto industry has been diligently building infrastructure to update our financial systems and expand the utility of cryptocurrencies. Real-world use cases are no longer just promises; they're slowly being realized. Here are some of the most popular examples:

1. Digitization of the Dollar: Despite high demand for the dollar in many parts of the world, many cannot open dollar bank accounts until the adoption of dollar-backed stablecoins (now exceeding $100 billion). Digitized dollars like USDC are crucial for enhancing the global competitiveness of the dollar. China began deploying its digital yuan strategy as early as 2019.

2. Fast, Cheap Global Payments: Merchants still lose about 2% on every credit card transaction, wire transfer fees can be $30, and many transactions in the U.S. still take days to clear. With blockchain scaling solutions like "Layer 2," you can now send USDC anywhere in the world in seconds for about 1 cent. The trading volume of dollar-backed stablecoins approaches $9 trillion annually (exceeding the sum of Mastercard, American Express, and Discover).

3. Business Models for Creatives: Total sales of NFTs have exceeded $62 billion, allowing artists to establish direct relationships with fans, bypassing costly intermediaries. Whether it's music, gaming, visual arts, or videos, cryptocurrencies help establish digital royalties to ensure artists get compensated.

4. Decentralized Social Media: While still in its early stages, decentralized social (or DeSo) ensures users control their data, not large tech companies, and are never subject to censorship. Each post is digitally signed, proving who the original author is, helping combat AI-generated fake content. Anyone can build a frontend interface using the same shared dataset for all social media posts.

Cryptocurrencies are not just a new asset class; they are the future of money.

Today's system is rife with middlemen, high fees, delays, and other inefficiencies, making it inaccessible and unfair.

The future of money will be more open, free, efficient, and supported by cryptocurrencies. Cryptocurrencies are the most important technology we need to update the global financial system, and they can drive America forward. In fact, this is crucial for ensuring the dollar's future as a reserve currency and America's position as a technological and financial center.

If you love this country, embrace cryptocurrencies and advocate for clear regulatory rules for them. If you're a cryptocurrency holder in the U.S., consider joining StandWithCrypto.org to help elect crypto-friendly candidates in elections. If you're a policymaker, help push for regulatory clarity in the U.S. to protect consumers and promote innovation. You can support bipartisan legislation such as the Payment Stablecoin Clarity Act, the 21st Century Financial Innovation and Technology Act, and the Responsible Financial Innovation Act. Clear regulatory rules for cryptocurrencies are urgently needed, and action must be taken without delay.

Jatin255

Cryptocurrency technology is very advanced.

Samiksha

I didn't realize NFTs could be bought like this, I really can't keep up with the times.

Ritu77

There must be something new with NFTs as well.