The Long Game of Crypto: Utility of Digital Assets Beyond Investment
Main Takeaways
In the final installment of The Long Game of Crypto series, we provide a bird’s-eye view on the utility of digital assets and blockchain technology beyond investing.
Understanding the utility of digital assets is fundamental to shaping the right mindset for long-term participation in the industry.
From uplifting the unbanked populations to providing decentralized identity systems, read on to understand why cryptocurrency and blockchain are here to stay.
The cryptocurrency revolution began with Bitcoin as a peer-to-peer electronic cash system, but the technology's potential reaches far beyond purely financial use cases. As we navigate another bull market cycle, it's crucial for newcomers to understand that digital assets represent a fundamental shift in how value moves through our increasingly connected world and how valuable information can be recorded, stored, and shared.
This article explores the broader utility of digital assets and blockchain technology and their growing adoption across various sectors, demonstrating how crypto represents a long-term, fundamental paradigm shift that has just started reshaping our global society.
The State of Global Adoption
The adoption of cryptocurrencies and blockchain technology continues to accelerate across multiple dimensions, painting a picture of sustained, organic growth despite market volatility. A recent study by digital currency payments firm Triple-A put the global number of crypto owners at 562 million in 2024, highlighting the technology’s significant penetration into mainstream consciousness. This growth is particularly noteworthy as it has occurred across diverse geographic and demographic segments, suggesting a broad-based acceptance rather than concentrated adoption.
Business integration of cryptocurrency solutions has reached a crucial tipping point, with many firms now accepting cryptocurrency payments. This corporate adoption extends beyond payments, as many businesses are integrating blockchain technology into their core operations.
The institutional finance landscape has undergone an equally dramatic transformation. Traditional banks, once skeptical of cryptocurrency, are now actively exploring blockchain implementation, with major financial institutions now developing blockchain-based solutions and piloting programs related to digital assets and cryptocurrency.
Banking the Unbanked
The World Bank reports that approximately 1.4 billion adults remain unbanked globally, with limited or no access to basic financial services. This challenge is particularly acute in developing regions, where traditional banking infrastructure is sparse or nonexistent. Cryptocurrency and blockchain technology are uniquely positioned to address this challenge through their inherent accessibility and low barriers to entry.
The mobile-friendly nature of cryptocurrency solutions aligns perfectly with existing technology adoption trends, as global smartphone penetration has led the way in new developing economies. Unlike traditional banking systems that require extensive documentation and physical infrastructure, digital assets only need a smartphone and internet connection to provide financial access. This simplicity has already begun transforming financial services in developing regions.
Remittances is one of the industries most impacted by the cryptocurrency revolution. Traditional remittance services often burden its users with fees ranging from 5-7% or higher, creating a substantial financial drain on those who can least afford it. Cryptocurrency transfers have revolutionized this space by reducing these costs to less than 1%, potentially saving the global remittance users over $25 billion annually. Countries like El Salvador, where remittances account for 24% of GDP, have embraced crypto solutions to enhance financial efficiency for their citizens.
The success story of Sub-Saharan Africa serves as concrete proof of this ongoing transformation. In a region where traditional banking penetration remains at just 45%, cryptocurrency adoption has surged dramatically. According to Chainalysis's 2024 Geography of Cryptocurrency Report, the region processed over $100 billion in crypto transactions annually. Nigeria leads this charge with 35% of adults actively using cryptocurrency, while Kenya's integration of crypto platforms with M-Pesa has created a powerful hybrid financial system serving millions.
Real-World Applications Beyond Finance
Here are only some of the most exciting real-world applications of blockchain technology beyond finance. This list, of course, is not comprehensive.
Decentralized Identity and Privacy
The concept of self-sovereign identity has moved from theoretical discussions to practical implementation through blockchain technology. This transformation enables individuals to maintain control over their personal information without relying on centralized authorities, a crucial development in our increasingly digital world.
For example, the UN's ID2020 alliance is a landmark initiative in this space, working to provide digital identification to over a billion people who lack official documentation. This effort has far-reaching implications for access to essential services, economic opportunities, and social inclusion. Estonia's pioneering e-Residency program demonstrates how blockchain-based identity systems can transform government services and international business operations, while Microsoft's ION network is building the infrastructure for a new generation of decentralized identity solutions on the Bitcoin network.
Supply Chain Transformation
In supply chain management, blockchain can track the provenance of goods from origin to consumer, ensuring transparency and reducing fraud. Walmart’s blockchain initiative has achieved this by tracking the journey of food products from farm to shelf, thus significantly reducing the time taken to trace the source of foodborne illnesses. This initiative has reduced the time required to trace food origins from seven days to just 2.2 seconds. This dramatic improvement enables rapid response to food safety concerns and significantly reduces waste throughout the supply chain.
Healthcare Revolution
The healthcare sector's adoption of blockchain technology represents one of the most promising applications of this technology. The secure management of patient data across institutions has long been a critical challenge in healthcare, and blockchain provides a robust solution while maintaining privacy and compliance with regulatory requirements.
The pharmaceutical supply chain has been particularly transformed by blockchain implementation. Drug authenticity verification, temperature-controlled shipping monitoring, and automated recall management systems have significantly improved patient safety and reduced operational costs.
The market for blockchain in healthcare is poised to grow, according to the latest research study by Polaris Market Research. The healthcare-related blockchain sector was valued at USD 831 million in 2024 and is projected to grow to USD 178 billion by 2034. It is anticipated to exhibit a compound annual growth rate (CAGR) of 71.1% from 2025 to 2034.
Social Impact Innovation
The social impact sector offers particularly compelling use cases for blockchain technology. Climate action initiatives are leveraging blockchain for carbon credit trading and environmental impact tracking, while charitable giving platforms use the technology to ensure donation transparency and efficient fund distribution. These applications demonstrate how blockchain can address complex societal challenges while providing tangible benefits to users and stakeholders.
Some Practical Tips to Stay Updated with Crypto’s Utility
Understanding and engaging with cryptocurrency's utility requires an approach that goes beyond simple trading or investment. Here are some suggestions on how to keep up to speed with the pace of digital-asset innovation and discover new areas of its growth.
Explore DeFi Applications
One way to systematically expand your overall understanding of the digital-asset space is by taking deep dives into its various corners and learning the ways in which they upend existing approaches and models. For example, consider learning more about decentralized lending and borrowing platforms that have demonstrated the viability of decentralized lending and ushered in new approaches to this age-old type of financial activity. By studying yield farming and liquidity provision, you can understand a bit on how decentralized finance has created new markets and economic value for some of its users.
Investigate Real-World Use Cases
Research blockchain implementation in your industry.
Follow projects focused on social impact.
Experiment with Web3 applications and DApps.
Familiarize yourself with cross-border payment solutions.
Stay Informed on Regulatory Developments
Monitor institutional adoption trends.
Follow the progress of central bank digital currency (CBDC) and real-world asset (RWA) tokenization programs and initiatives.
Understand compliance requirements in your jurisdiction and track the evolution of regulatory frameworks relevant to you.
Challenges and Future Prospects
The path to widespread blockchain adoption faces several significant roadblocks. Technical scalability remains a primary concern, as current blockchain networks must evolve to handle increasing transaction volumes without compromising decentralization or security. Energy consumption continues to draw scrutiny, particularly in proof-of-work systems, driving innovation in more sustainable consensus mechanisms and green mining practices.
User experience is another long-standing issue that keeps undermining the progress in the industry. The complexity of current blockchain interfaces and the steep learning curve associated with many applications can deter mainstream adoption. Security concerns, particularly for newcomers, require balanced solutions that maintain robust protection while ensuring accessibility. The development of more intuitive interfaces and improved security practices will be crucial for broader adoption.
The regulatory landscape presents positive challenges and opportunities. While varying jurisdictional approaches and unclear compliance requirements can create uncertainty, increasing regulatory clarity in major markets is providing a foundation for institutional participation. Cross-border, cross-industry coordination efforts are gradually establishing standardized frameworks for international blockchain operations. All these are gargantuan challenges that won’t be solved overnight.
Beyond Prices and Hype
The true value of digital assets extends far beyond investment. As adoption grows and technology matures, we're witnessing the emergence of a new digital economy that promises greater financial inclusion, improved efficiency across industries, and enhanced personal sovereignty over data and value.
For newcomers entering the space, understanding these broader applications is crucial for long-term success. By focusing on real-world applications and utility, investors can better appreciate why crypto truly is a long game worth playing. When the next bear market comes along, it will also be easier to remain steady if you are convinced of the utility of a specific investment you are holding.
Remember, the journey towards widespread adoption is a marathon, not a sprint. As you explore the crypto ecosystem, look beyond price movements to understand how this technology is reshaping our world, one block at a time.