What are the real use cases of cryptocurrencies
What are the real use cases of cryptocurrencies
Crypto

What are the real use cases of cryptocurrencies

By Marco Cavicchioli - 21 Apr 2020

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An analysis has recently been published which reveals the real use cases of cryptocurrencies

The report was published by Visual Objects and produced by Emily Clarke interviewing 983 people who are familiar with digital currencies. 

The first discovery is that most cryptocurrencies are often used for very “mundane” purchases, such as clothes and food, despite the fact that a third of respondents say they believe that they are mainly used for the purchase of illegal objects. 

Things turned out to be much more complicated than is commonly thought. 

For example, although the cryptocurrency market now counts tons of tokens, in reality, most people only use bitcoin and a handful of other digital currencies. 

The use cases of cryptocurrencies according to the survey

In short, this survey revealed the following results: 

  • Only 16% of people actually invested in cryptocurrencies, because the vast majority still prefer traditional currencies;
  • Bitcoin is owned by 70% of investors, making it by far the most widespread cryptocurrency;
  • 72% of cryptocurrency users have used them for everyday purchases, with 38% using them to buy food, and 34% to buy clothes;
  • 26% used them to buy dangerous items such as weapons or drugs;
  • 40% of respondents believe that cryptocurrencies are used for speculative purposes, while 30% think they are used to buy illegal items. 

Although 72% of cryptocurrency holders said they use them for everyday purchases, only 14% said they think cryptocurrencies are used to purchase these everyday items. 

This discrepancy is truly vast and illustrative because it reveals that the vast majority of the population does not have a clear idea at all about how cryptocurrencies are actually used. 

This widespread misunderstanding is due to the fact that cryptocurrencies were in fact initially used mainly on the black market and are very well known for pseudonymous transactions. 

This makes them potentially usable for buying illegal items, causing a mistaken perception of their use.  

In addition, 70% of holders said they owned BTC, while only 27% said they owned ETH, the second most common cryptocurrency. 

The curious thing is that in third place of this ranking there is LTC, with 20%, and that DOGE exceeds Dash with 15%, compared to 14%. Moreover, Ripple (XRP) does not appear in the top 5 of the most purchased cryptocurrencies. 

Out of almost 3,000 cryptocurrencies and tokens in circulation, only 10 are commonly considered valuable and most people actually use only one. 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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