Practical Uses of Digital Assets?
There is a direct relationship between use case and value. As an example, the use case of gold is both a store of value and a material for making making jewelry. The same applies to silver. Along the same lines, anything that can be used to increase production or save time can have value as well. One could assume that the higher the production — or the more time saved — the higher the value of that use case. As an example, a new software program or a new payment system could increase in value if that program or system is adopted by an increasing user base. Two factors that could affect value are competition or an over-supply. In other words, if there are too many developers producing the same software program, or there are too may competing payment systems, then the value (or price) of that use case may not increase in value. It may even decrease.
Based on the above, this webpage presents use case scenarios for a various digital assets. This could include cryptocurrency, real world asset digitization, or worldwide financial systems. One of the most important uses of digital assets is it’s digital currency features. In other words, digital assets such as cryptocurrency can be used as a quick and easy payment system for a variety of goods and services. In fact, many people already use things like Apple Pay or Google Pay along with a variety of credit cards to pay for something they want or need. In one sense, personal checks are also a form of digital currency in that actual cash is not used. The main advantages of using digital currencies as payments is that they are immediate and cost only a fraction of alternate payments like those mentioned above.
Adoption of Digital Payments
Businesses and corporations are quickly adopting cryptocurrencies as a form of payment for their goods and services. According to a 2022 survey conducted by Deloitte, 75% of retailers have plans to start accepting cryptocurrencies over the next two years. Stablecoins are digital currencies that are designed to maintain a stable value relative to a reference asset, such as the US dollar. They are gaining popularity as a means of payment due to their low transaction fees and fast processing times. The widespread adoption of stablecoins as a means of payment is anticipated to occur rapidly, and consumers will soon be able to use stablecoins to pay for things they need or want. In connection with this, all digital asset donations can be immediately converted to cash (U.S. Dollars) during normal banking hours. Or, they can be held on account for future use or payment of expenses.
Use Case:
Support Churches and Charities
Let’s say, for example, you attend a free concert presented by a church choir and other community musicians — and you would like to make a donation. Inside the program is an envelope for donations and you can either use cash or a personal check to make the payment. Or, you could go to the concert website and make a donation online by using a credit card. This option, however, is a bit time-consuming and it costs the concert organization fees for the donation you make. As an example, you will most likely have to fill out your full name, phone number, email address, and credit card information to make the donation. Some organizations may allow you to make an online bank transfer with no fees, but again, it can be time-consuming.
So, is there another way? Yes there is, and that involves using your cell phone, collecting the QR code displayed on the concert program, and then sending the donation directly from your digital asset wallet on you cell phone. This webpage describes this process in more detail.
Donation Accounting
Setting up an accounting of Digital Asset Donations is straight-forward. Smaller donations can be treated as cash donations similar to collections received by passing a basket around after a church service or concert presentation.
Larger donations, on the other hand, would need a more specific application for accounting and tax purposes. As an example, an online form for organization donations could be changed to add “Sending Address” to the form which already includes the Sender’s Name; Phone Number; and Email Address. This “Sending Address” could be saved to associate all donations coming from that address are to be credited to the same donor. It’s a bit more complicated if the donor makes subsequent donations by using another digital asset (which has its own digital address) but the process would be the same. The main point here is that accounting for digital asset donations would be a simple matter.
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