Practical applications of Bitcoin: from investment to daily transactions
Despite its high volatility, an increasing number of users recognize the benefits of using Bitcoin for a wide range of activities, including investing, safeguarding savings against inflation, paying for goods and services, and facilitating cross-border transfers.
Investment and savings
Where people once stored their savings primarily in gold, an increasing number now prefer Bitcoin. Due to its limited supply and transparent issuance, Bitcoin is often seen by investors as "digital gold."
According to surveys, 67% of millennials prefer Bitcoin over gold as an investment. In the U.S., the number of Bitcoin holders reached nearly 50 million in 2025, surpassing the number of gold investors.
Today, not only private investors but also companies and even governments view Bitcoin as a strategic reserve asset, either supplementing or replacing their gold reserves. According to Bitcointreasuries data for 2025, the total crypto reserves held by governments amount to approximately 560,000 BTC (~2.8% of the total Bitcoin supply), valued at over $66 billion at current prices.
Cross-border transfers
For users sending money abroad, Bitcoin transactions can be significantly cheaper than traditional international money transfers. This has become one of the main reasons for Bitcoin's growing role in cross-border payments.
For example, as of 2024, nearly 20% of Nigeria's population uses Bitcoin for cross-border transfers, due to high banking fees and the unstable local currency (naira). In the Philippines and the U.S., over 15% of users utilize Bitcoin for this purpose, and in Vietnam, the number exceeds 20%.
Bitcoin payments
The number of companies and private retailers accepting Bitcoin payments continues to grow rapidly. According to BTC Map, the number of merchants accepting Bitcoin has tripled in recent years, now exceeding 17,000 worldwide.
In the U.S., even large companies like Overstock — one of the first major online retailers — accept Bitcoin for purchases of electronics and furniture. In Japan, a wide range of stores, restaurants, and even taxi services accept cryptocurrency.
According to Andreessen Horowitz (a16z), between 30 and 60 million people globally actively use crypto, including for purchasing goods and services.
Bitcoin exchanges as bank account alternatives
Although more retailers and large companies are accepting Bitcoin payments, this option remains unavailable in many locations. Additionally, in some countries, Bitcoin payments are outright banned. Therefore, users need the ability to store savings in Bitcoin while also being able to quickly convert crypto to fiat for everyday expenses.
This is especially relevant in countries with high inflation, such as Venezuela and Argentina. The rapidly appreciating Bitcoin rate attracts many users in these regions, who prefer to hold their savings in crypto rather than their rapidly devaluing national currencies.
Instead of traditional bank accounts, citizens use crypto exchanges and swap services to store their funds — these platforms have become de facto replacements for banks. When payment is needed, users can quickly convert Bitcoin into the required currency.
In some countries in the EU, Asia, the U.S., and the UK, crypto debit cards are available. These allow users to pay with Bitcoin and other digital assets. Funds are held in crypto, and at the moment of purchase, the asset is instantly converted to fiat currency.
Bitcoin as an alternative to offshore accounts
In countries with hyperinflation, such as Iran or Venezuela, national currencies can lose 30–100% of their value in a single year. Before Bitcoin, many citizens opened offshore accounts to receive salaries and store funds in more stable currencies, such as the U.S. dollar.
In other words, people sought to keep their savings outside of their domestic financial systems due to excessive inflation. Bitcoin emerged as a better alternative to offshore accounts, as users no longer need to entrust their funds to third parties or undergo identity verification.
Bitcoin's future outlook
Bitcoin continues to strengthen its position in the global financial system, with user numbers now exceeding 300 million worldwide. According to a forecast by Boston Consulting Group, this number could reach one billion by 2030 — a sign of large-scale adoption.
Technological advancements are also expanding the applications of Bitcoin. One such innovation is Ordinals — unique digital items on the Bitcoin blockchain, similar to NFTs, gaining popularity among digital art collectors.
At the same time, such innovations spark debate. Some experts warn that the rise of non-standard transactions increases network load, raises fees, and could make Bitcoin less attractive for payments, prompting users to migrate to cheaper blockchains.
Nonetheless, the overall trend suggests continued growth in interest in Bitcoin, both as an investment vehicle and a foundation for technological innovation.