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Bitcoin has grown considerably from the little-known asset it was at inception in 2009, to the world’s largest cryptocurrency. As of August 2023, CoinMarketCap data put Bitcoin’s dominance at 48.2%. What’s more, Bitcoin’s market capitalization was more than $530 billion at the end of August. As the world’s most popular crypto asset, Bitcoin has found use in several sectors for its unique features and the advantages of its existence on a blockchain. These sectors have benefited immensely throughout Bitcoin’s history and evolution and continue to harness the asset’s power. Some sectors where Bitcoin has found the most use include the following:
E-Commerce and Online Shopping
The e-commerce industry has substantially benefited from Bitcoin, especially in recent times. The world’s number one coin is now part of a growing list of alternative methods merchants use to receive payments from customers. By supporting Bitcoin payments, these merchants immediately expand their customer bases to accommodate members of the crypto community, a move that may help retain new patronage.
In addition, Bitcoin enables both customers and merchants to sidestep several limitations, such as expensive transaction fees and geographical restrictions, that may stifle traditional modes of payment. These merchants can easily integrate a payment gateway that helps them to quickly convert the crypto received to fiat currency. More than 15,000 businesses worldwide accept Bitcoin. Research has also shown that, on average, up to 40% of buyers who use Bitcoin to purchase goods and services are new customers who spend twice the amount paid by credit card users.
Gambling
Bitcoin is very useful in gambling, especially as online casinos become increasingly popular. Many casinos offer players several deposit methods to credit their gaming accounts and place wagers. As crypto adoption spreads, gambling service providers are establishing crypto casinos and also integrating Bitcoin payments on existing platforms. In addition to traditional online casinos that support alternative payments, members of the crypto community can find a dedicated Bitcoin casino that lets them make deposits using the king coin, to then bet on their favorite games. A Bitcoin casino works the same way a traditional casino would, allowing players to enjoy gaming action on known casino games and sporting events.
Finance
The finance sector is probably Bitcoin’s biggest beneficiary. Bitcoin has significantly disrupted the industry and has expanded the world’s view of what qualifies as money. Although Bitcoin is legal tender only in El Salvador and the Central African Republic, it is commonly used in most regions for cross-border payments. Instead of using traditional methods to receive or send money overseas, people prefer sending Bitcoin between crypto wallets. These transactions are much faster, cheaper, and do not have the same regulatory restrictions as traditional methods.
In addition, the global financial industry has enjoyed increased inclusion through the widespread use of Bitcoin. Since the Bitcoin sector has a low entry barrier, nearly anyone can register for a wallet and start sending and receiving Bitcoin.
Logistics and Supply Chain Management
Bitcoin is built on blockchain technology, which is essentially an immutable ledger with multiple data entries. This immutability makes blockchain the best way to keep records because the information entered on the blockchain cannot be changed. This means that all businesses that depend on one or more forms of logistics can enjoy nearly foolproof record-keeping using Bitcoin and its underlying blockchain.
Supply chain managers and logistics stakeholders also enjoy unmatched transparency on the Bitcoin network. Anyone can use a block explorer to audit the Bitcoin blockchain and view all data entries with timestamps. This reduces the risk of fraud and ensures transparency between parties.
Philanthropy
Crypto philanthropy platform, The Giving Block, said it has so far facilitated crypto donations worth $125 million from more than 1,000 organizations. The team at The Giving Block also noted that by the end of 2022, crypto donors had donated $172 for every dollar in Bitcoin’s market cap. This number is a 41% increase from 2021’s crypto donation figures.
Generally, philanthropy has benefited immensely from the crypto industry. One of the biggest names in crypto, ETH founder Vitalik Buterin, has seemingly spearheaded this cause and has donated hundreds of millions of dollars worth of cryptocurrencies over the last few years.
One of the attractions of crypto donations is that these charitable transactions are tax-friendly in many cases, as donors can mostly skip some types of taxes or write off donations as charitable. Bitcoin donations also drive adoption and help with corporate social responsibility when done by crypto companies.
