It’s fair to say that the last few years have been quite bumpy, economically speaking, at least. Whenever there’s a sharp downturn in major global economies or a rise in some of the factors that can cause an economic turndown, there’s often a much thinner scope for positive finance stories.
However, cryptocurrency has been one area of finance that has managed to buck this trend over recent years. As cryptocurrency ownership continues to grow in many countries—including Canada—today, we’re going to look at some practical use cases that have allowed it to flourish in an ever-changing, modern economy and how Canadians are implementing it into their daily lives.
Blockchain Gaming
The blockchain is the canvas on which cryptocurrency projects build—it’s a complex web of encryption and cryptography. Still, the main selling point is that it’s publicly accessible and cannot be altered.
As the encryption and cryptography that validates the blockchain is impenetrable, it’s a decentralized and self-governing asset—it doesn’t require any oversight. All transactions on the blockchain are there to view at any time, from wherever you are in the world.
Gaming companies have identified that blockchain and cryptocurrency payments offer the potential for a new gaming future. Some have utilized the power of NFTs as valid proof of purchases, whether for virtual land, goods, or items in a free-to-roam game.
Blockchain gaming is one of the most effective ways to create a bridge that helps those who have a glancing interest in cryptocurrency to become more hands-on and understand how it works.
Those Canadians who have already purchased in-game tokens and traded and invested in Bitcoin and Ethereum will, generally speaking, have a suitable grasp of blockchain. Still, blockchain gaming provides a more practical, recognizable way of seeing how it works via platforms or services that they are more familiar with.
Cryptocurrency Casino Gaming & Sports Betting
Alongside blockchain gaming, cryptocurrency casinos and sports betting are obvious candidates for the most apparent crossover use case. Those who have been in the digital casino industry or are partial to a sports bet will understand just how forward-thinking some minds are in the iGaming world.
They’ve consistently led the way in adapting fintech innovations. We saw this in the early 2000s when Neteller became a big player in digital finance—helped predominantly by its presence in the primitive stages of the digital gambling world. PayPal also entered this market impressively, and while they might not have had Neteller’s initial standing in casino gaming, they certainly won the long-term battle.
Evolving With the Times
With each passing decade, the industry has moved with the times; there’s no disputing that. Some might say the implementation of mobile app payments, e-wallets, e-checks, and cryptocurrency were all payment methods the casino industry picked up long before many other industries pioneered and brought them to the masses.
The rise of cryptocurrency casino gaming has been sudden and sharp. While it might still be considered a challenger area of the iGaming world, for now, it’s reached such a point of popularity that highly rated review sites like bitedge.com have found a gap in the market. By ranking the top crypto gambling providers and having experts pick the pros and cons of what they offer, these sites offer Canadian gamblers an outlet to peruse and save time when looking for the providers with the best platform.
Although traditional names in digital finance, like PayPal, continue to battle it out against some of the other big names in payment processing, cryptocurrency may have been one market that it wouldn’t have expected to be battling against in the casino gaming world.
Cryptocurrency casino gaming has risen quickly in the wider iGaming world. Although it still has a long way to go before it can challenge some of the traditional providers, the recent surge has meant that there’s more than enough competition currently battling against each other to try and put themselves at the top of the pile among cryptocurrency gambling customers.
Responsible Gambling
It’s crucial for us to mention that any online betting you do should be measured and within the parameters of safe gambling protocol. Only gamble with money you can afford to lose and remember that gambling is not a source of income.
Set up time and deposit limits, and if you exceed them or struggle with other aspects of your gambling, it is time to stop and seek help from professionals and organizations that know how to identify and treat problem gambling. If you notice these patterns in a friend or family member, you can seek assistance from the same organizations on their behalf, and thanks to the Internet, there is a lot of help at your fingertips.
Understanding Digital Transparency & Security
Blockchain and cryptocurrency are intriguing dichotomies. From a traditional cybersecurity perspective, the idea of having all of your transactions publicly viewable would’ve been a nightmare, purely with regard to security.
Traditional financial companies would use these transactions to identify people; if customers call the bank or look to do in-branch banking, it’s still considered sensitive data. However, blockchain’s transparency and any issues in security are counterbalanced by the fact that none of the transactions can be altered. Herein lies the integral, secure nature.
Cybersecurity remains one of the most pivotal elements and talking points in our digital world. The topic has veered away from the traditional method of laptops, PCs, and smartphones and now focuses on any digital device that connects to the Internet, ranging from smart homes to modern cars.
Cryptocurrency and crypto ownership have highlighted that centralised banks, some of whom have operated for over 300 years, are now not the only way to send and receive remittances. The blockchain doesn’t discriminate based on borders, and the transparency and secure nature act as global proof of transaction.
Cross-border Payments
As the international community becomes more interconnected, one area that has lagged behind is facilities to send money across borders. If you use a traditional payment system like a bank, a cross-border payment can take anywhere between two to ten business days and can be subject to international currency exchange rates during this period.
You’ll also incur a fee, which can increase depending on how much money you send. Although companies like Wise and others have found success in the global money transfer business, they’re still often shackled by the same antiquated framework that has proved to be a stumbling block for transnational businesses in years past.
If you’re sending cryptocurrency payments out of Canada, all you need is the wallet address of the person you’re sending it to—regardless of where they are in the world. Now, while this is one of the most popular use cases of crypto, you need to ensure that if you’re sending crypto overseas, you’re fully aware of the regulations, taxation, and laws of the land between your homeland and the country you’re sending your crypto to, and where the wallet address is linked to.
Therefore, Canadians looking to send remittances to other parts of the globe only have to concern themselves with the gas fee they must pay during busy periods, especially if they’re sending on more dated and rigid blockchains, like Ethereum.
Despite being the blockchain of choice from a security perspective, it can incur quite a fee if sent during times of high activity, so this is something to consider. There are pros and cons to weigh up.
Yield Farming
Also known as liquidity mining, yield farming is a strategy that crypto investors use to try and obtain interest income from their cryptocurrency holdings. This is a particularly popular way Canadians use it as it acts like an interest rate on a traditional savings account. They can provide more stability if they’re holding the asset in the long term, and it helps to counterbalance it against the cryptocurrency market’s volatility.
While there is risk involved, yield farmers utilize blockchain innovations, which means they continuously move their crypto assets to the blockchain networks with the most enticing interest rate.
Final Thoughts
Canadians are still learning how blockchain and cryptocurrency networks operate. Although a growing percentage are investing in them, millions more have yet to make the move. Crypto ownership is increasing each year throughout the West; Canada isn’t an anomaly in this regard.
However, increasing use cases, especially everyday ones such as casino gaming and broader gambling markets, help to bridge the gap. It’s picking up momentum, but at the same time, these seismic shifts in finance and traditional payment systems aren’t something that occurs overnight.
Blockchain companies are exploring how to integrate their technology into healthcare, property, fintech, and record keeping. While blockchain and cryptocurrency are two different things, cryptocurrencies are the value and mode of transaction that help inject significant lifeblood into the industry.
Although they have different characteristics, there is some mutual inclusivity, and if more companies or individuals are talking about blockchain integration or cryptocurrency assets, then it benefits both industries.
