I want to know how Bitcoin is being used globally.
How are people using Bitcoin around the world?
Although Bitcoin's price fluctuations often draw attention, many people globally use Bitcoin for purposes other than investment. With practical use cases expanding, Bitcoin's adoption may continue to grow in various countries and regions.
In this article, I'll explain 13 use cases of Bitcoin from around the world.
Summary
- Bitcoin can be utilized for its fast transfer speed and low fees.
- It can be sent anywhere in the world with internet access, and there are cases where Bitcoin is accessed using feature phones (old-style mobile phones).
- In Japan, Bitcoin can be used for payments at certain stores, and there are apps available for microtransactions using Bitcoin.
This article was written in Japanese and converted to English using a translation tool.
Date of writing (Japanese version): January 2024
Practical Use Cases of Bitcoin
How is Bitcoin being used around the world?
I'll introduce practical use cases of Bitcoin that take advantage of its unique characteristics.
- Philippines: Sending Bitcoin across borders
- Afghanistan: Salary payments to help women
- Ukraine: Faster than banks
- Worldwide: Paying salaries with Bitcoin
- Turkey: Preserving assets
- Nigeria: Protecting assets from government account freezes
- Tonga: Bitcoin donations for volcanic and tsunami relief
- Africa: Accessing Bitcoin without internet
- Worldwide: Non-profit organizations accepting Bitcoin donations
- El Salvador: Adopting Bitcoin as legal tender
- Lugano, Switzerland: Paying public utility bills with Bitcoin
- Bhutan: Monetizing surplus electricity through mining
- Kenya: Combining Bitcoin with small-scale power generation
Philippines: Sending Bitcoin Across Borders
Bitcoin instantly arrives from the US to the Philippines.
YOU CAN SEND AS LITTLE AS 1 PESO (0.018 USD) OVER LIGHTNING ⚡️
— Pouch (@Pouch_PH) March 13, 2023
From the US to Boracay (@BtcRetreat) Philippines instantly. 🇺🇲🤝🇵🇭
No shitcoins or stablecoins involved. pic.twitter.com/xVOGSpPh6T
In the Philippines, about 10% of the population works overseas as migrant workers, actively sending remittances to their families back home. Bitcoin is emerging as an alternative to traditional, costly remittance methods.
By utilizing Bitcoin's "Lightning Network," it is possible to convert and send US dollars to Philippine pesos quickly.
The remittance market in the Philippines is significant on a global scale, ranking fourth in the world for remittance receipts in 2022!
※Source：The world bank
There may be a growing need for Bitcoin as an easy remittance method.
Additionally, over 300 stores in the Philippines accept Bitcoin payments, making it one of the leading countries in Asia for Bitcoin adoption.
Afghanistan: Salary Payments to Help Women
アフガンの若き女性CEOは激しい性差別と弾圧社会の中でも女子へのオンライン教育の道を切り開き、働く女性にはビットコインで報酬を送る。インタビューリンクは元ツイのコメ欄に。Study #Bitcoin https://t.co/SuT5EAHORd
— Kate 🟢⚡️ (@shungiku2010) September 29, 2023
Afghanistan imposes restrictions on women's employment and education, making it difficult for women to access financial services. Salaries paid in cash are often confiscated by husbands or fathers, hindering women's economic activities.
Receiving salary payments in Bitcoin allows women to hide their assets from oppressive individuals and provides an opportunity for economic independence.
In Afghanistan, women's rights are severely restricted, and their economic activities are limited…
Bitcoin, which can be used without opening a bank account, could be a ray of hope for Afghan women.
Ukraine: Faster Than Banks
In Ukraine, a 20-year-old man used Bitcoin to escape abroad before the border closure. With ATMs not functioning properly and long queues, the man traded directly with a friend and exchanged his Bitcoin savings for Polish currency.
Two hours after he entered Poland, the border was closed, showcasing the convenience and speed of Bitcoin transactions.
The man crossed the border with a memory stick containing about $2,000 in Bitcoin.
Without Bitcoin, he might not have been able to withdraw any of his savings.
This case clearly shows how self-managed Bitcoin can be practically used.
Worldwide: Paying Salaries with Bitcoin
Some Bitcoin development companies pay salaries in Bitcoin. It allows companies to easily send a universal value to employees, regardless of their country of residence. There's no need to convert currencies or pay intermediaries, enabling fast salary payments.
Companies around the world use payment services like Bitwage and Strike to pay salaries in Bitcoin.
Bitcoin is very convenient for sending payments to freelancers working in various countries.
In the U.S., using the payment service Strike, you can automatically convert your salary into Bitcoin.
Additionally, MicroStrategy, known for its large Bitcoin holdings, allows employees to choose Bitcoin as an investment option for their 401(k) retirement plan.
urkey: Asset Protection
In Turkey, where the value of the national currency has been declining, there is a growing trend of holding Bitcoin as a hedge against inflation. The Turkish lira, which was around $0.3 in 2016, has fallen to around $0.033 by January 2024, representing a nearly tenfold decrease over eight years.
As inflation continues to accelerate in the country, Bitcoin, a more stable asset compared to the national currency, might become a preferred choice for safeguarding wealth.
Notably, in September 2023, the Turkish lira became the most traded fiat currency pair on Binance.
This indicates active trading with the Turkish lira.
Bitcoin's limited supply and scarcity might make it increasingly recognized as a store of value!
Nigeria: Protecting Assets from Government Account Freezes
In 2020, during protests against police brutality in Nigeria, the government froze the bank accounts of private organizations and individuals involved. This led to a surge in cryptocurrency donations, and despite a government ban on cryptocurrencies, peer-to-peer transactions remained active.
According to a 2023 survey by Chainalysis, Nigeria ranked second globally for everyday cryptocurrency usage, just behind India.
In Japan, the idea of the government freezing bank accounts is hard to imagine, but it happens in other parts of the world…
In December 2023, Nigeria lifted its cryptocurrency ban.
With the devaluation of the national currency, the naira, Bitcoin trading might increase further.
Countries with High Everyday Use of Bitcoin and Cryptocurrencies
Want a sneak peek in the meantime? Here’s the top 10:
— Chainalysis (@chainalysis) September 12, 2023
1. India 🇮🇳
2. Nigeria 🇳🇬
3. Vietnam 🇻🇳
4. United States 🇺🇲
5. Ukraine 🇺🇦
6. Philippines 🇵🇭
7. Indonesia 🇮🇩
8.Pakistan 🇵🇰
9. Brazil 🇧🇷
10. Thailand 🇹🇭
1st: India, 2nd: Nigeria, 3rd: Vietnam. Japan ranks 18th.
Bitcoin Donations for Eruption and Tsunami Relief
During the 2022 underwater volcanic eruption in Tonga, Bitcoin donations were accepted for relief efforts. With undersea cables severed, limiting traditional means of sending aid, Bitcoin satellite kits were used to facilitate donations.
Tonga is also considering adopting Bitcoin as legal tender and has plans for geothermal energy-based mining projects.
Despite disruptions to regular internet communication, Bitcoin donations were made early on!
There was also a movement to donate Bitcoin from Japan.
Bitcoin's ability to quickly and cheaply transfer funds to distant countries is very convenient.
少額ですがトンガにビットコインで寄付しました。
— ちょめじ (@ch0meji) January 21, 2022
手数料は142satoshi(6円)
送金時間は5分でした。
通信等は現状遮断されているそうですが衛星を使ってビットコインを受け取り住人のメッシュネットワークを使って配布したいらしい。まぁすぐ使えるってわけじゃないけど気持ち程度に。 https://t.co/F0HDGZJrkM
Africa: Accessing Bitcoin Without Internet
In seven African countries, including Ghana, Nigeria, and Namibia, users can access Bitcoin from feature phones using a tool called "Machankura." Feature phones refer to older mobile phones that existed before smartphones.
Users registered with Machankura can send Bitcoin to other users via phone numbers or Lightning addresses. This tool can be a means of accessing financial services in developing countries where internet connectivity is limited.
About 49% of the global population uses smartphones, while 8% (approximately 600 million people) use feature phones.
Source：GSMA／モバイル・インターネット接続の現状2023（SOMIC）
In Sub-Saharan Africa, internet usage is only 59%.
A tool that allows Bitcoin transfers via text message might be in high demand.
世界各地｜非営利団体によるビットコイン寄付の受付
@Btchubafrica grand opening, feeling grateful and honored to be apart of this huge project.
— Josh Wiltord (@JoshWiltord) September 14, 2023
A big thank you to my founder @meronina and @HRF
Big things are coming
Kindly consider a donation to this effort
Stay tuned! #Bitcoin pic.twitter.com/yEjsENNvaD
In areas with insufficient internet infrastructure, Bitcoin donations can support various causes. Many charities and NGOs globally accept Bitcoin donations.
The Human Rights Foundation (HRF) accepts Bitcoin donations through its website, using QR codes for transfers.
I thought Bitcoin couldn't reach people without smartphones or bank accounts, but donating to Bitcoin-enabled nonprofits could be a viable option.
In developing countries, establishing internet infrastructure with satellites might be smoother than traditional financial infrastructure like bank branches and ATMs.
In such places, environments for directly sending Bitcoin might be developed in the future.
El Salvador: Adopting Bitcoin as Legal Tender
Bitcoin payment QR codes displayed
In El Salvador, Central America, Bitcoin is recognized as legal tender by the government. Some stores accept Bitcoin for payments.
Plans for creating a "Bitcoin City" with tax exemptions for income taxes and utilizing geothermal energy for Bitcoin mining are underway.
Examples of stores accepting Bitcoin in El Salvador:
- Some retail stores
- McDonald's
- Starbucks
El Salvador has a significant number of expatriates, and high fees are incurred for remittances to the country.
Many Bitcoin-related companies are advancing their projects in El Salvador to support the first country to adopt Bitcoin as legal tender.
Bitcoin is not yet widely used among people.
Bitcoin education will be included in public school curriculums from 2024, so it will be interesting to see how things progress.
Switzerland: Paying Public Utilities with Bitcoin in Lugano
Come to Lugano and have a pizza paying with #bitcoin at Commercio! 🍕#LuganoPlanB pic.twitter.com/hRSgkXJLac
— Lugano Plan ₿ (@LuganoPlanB) November 17, 2022
In the city of Lugano, Switzerland, three cryptocurrencies, including Bitcoin, are effectively treated as legal tender. As of December 2023, Bitcoin and Tether can be used to pay taxes and public utility bills.
Lugano is actively experimenting with blockchain technology and aims to transform its financial system based on Bitcoin technology.
In Lugano, over 100 stores accept Bitcoin payments.
Merchants can instantly convert Bitcoin sales into Swiss Francs automatically.
You can even use Bitcoin for the initial capital when establishing a company.
If you hold at least 100,000 Swiss Francs worth of Bitcoin, you can register a business.
Bhutan: Monetizing Surplus Electricity through Mining
Since 2019, Bhutan has been engaging in Bitcoin mining, with a government investment fund utilizing hydropower for mining activities.
Mining: The process of verifying Bitcoin transactions and writing them correctly on the blockchain. Miners receive Bitcoin as a reward for approving transactions.
Countries Actively Mining Bitcoin
- Bhutan: Utilizing the abundant hydropower resources of the Himalayas
- Paraguay: Using surplus electricity from the Itaipu Dam
- United States: Implementing mining with flare gas (excess gas from oil fields) in Texas
More and more cases are emerging where surplus renewable energy, which fluctuates due to seasons and weather, is being utilized for Bitcoin mining.
It would be great if the development of renewable energy progressed alongside Bitcoin mining!
Kenya: Combining Bitcoin with Small-Scale Power Generation
🤩#Bitcoin mining improving the economics of a hydro power plant in 🇰🇪 Kenya pic.twitter.com/KgYKhzHq8u
— Luxor Technology 🟧⛏️ (@LuxorTechnology) January 21, 2024
In some cases, people who were forced to live without electricity can now use it thanks to the combination of Bitcoin and small-scale power generation.
In a small village in Africa, constructing a small hydropower plant faced issues of unutilized surplus electricity and lack of profitability. By utilizing the surplus electricity for Bitcoin mining, the revenue from mining can cover the initial investment costs, providing a sustainable supply of stable electricity.
They are providing electricity to villages without disrupting the local ecosystem significantly!
Combining cheap, surplus renewable energy with Bitcoin might lead to many new initiatives in the future.
Is Bitcoin Used in Japan?
I understand that Bitcoin is being practically utilized worldwide, but isn't it used in Japan?
Bitcoin is used in Japan too!
I'll introduce some practical uses of Bitcoin in Japan.
In-Store and Online Shopping Payments
Bitcoin can be used as a payment method in many stores and online shops. As a global currency, Bitcoin can be used for payments without the need for currency exchange, both in Japan and abroad.
Some individual stores and food trucks are starting to accept Bitcoin payments to attract foreign tourists and new customer bases and expand the use cases of Bitcoin.
There are several individual businesses like cafes, bars, and hair salons where you can use Bitcoin payments!
There are also flea market events where you can shop with Bitcoin payments.
The "Lightning Network" technology of Bitcoin is being developed for cheap and fast transactions.
Lightning Flea Market in Koenji
高円寺ライトニングフリマでBTC LN決済をたくさんしてきました。思った以上に盛り上がっていてビットコイナーのパワーを感じました。#高円寺ライトニングフリマ pic.twitter.com/J4lqTOLY5Q
— BBB（本物） (@project_bbb) November 19, 2023
Tipping Small Amounts
ポッドキャストアプリのFountainで
— Shigeru Minami (@kiterugumatic) January 23, 2024
簡単にsatsが送れるのが面白いです
大体6円分くらいのビットコインが数秒で投げられました
聴いてるとたまにsatsがもらえるのも良いですね
↓リバタリマン・ラジオ（@libertariman）に送ったところです pic.twitter.com/6ydnvjq7ZS
In the podcast app "Fountain," you can easily tip sats worth a few yen.
*1 sat = 0.00000001 Bitcoin
You can tip the broadcaster in seconds, much like giving a "like."
In addition, the Fountain app allows you to earn sats by listening to podcasts, so you can use the sats accumulated from listening to content for tipping.
You can also tip posts in units of 1 sat on the decentralized SNS "Nostr"!
In traditional payment systems, ultra-small payments were impractical due to the costs involved.
Unique features of Bitcoin are being developed that are different from traditional money.
Bitcoin Payments Start on Mercari
メルカリがフリマアプリでビットコイン決済導入へ、6月までにサービス拡充計画＝報道https://t.co/LkWTa84tze
— CoinPost（仮想通貨メディア） (@coin_post) January 7, 2024
The flea market service Mercari has started a service that allows you to purchase items on the app using Bitcoin. Mercari has already started a service that allows users to trade Bitcoin using sales proceeds and points, with more than 1 million users already utilizing the service.
With over 22 million monthly users (as of July 2023), more people in Japan might start using Bitcoin thanks to Mercari.
About 80% of the people using the Bitcoin trading service on Mercari are cryptocurrency novices.
*As of June 2023
It's a widely used service, so it would be great if it leads to the spread of Bitcoin in Japan!
Understanding Bitcoin's Characteristics Through Use Cases
The use cases introduced here leverage various characteristics of Bitcoin.
Use Cases from Bitcoin's Characteristics
- Decentralized
→ Can be sent directly to the intended recipient without going through a central bank
(Example: Philippines | Sending Bitcoin Across Borders) - Trustless
→ Transactions are verified by the network, so there's no need to trust a third party for transaction accuracy. It proves valuable in politically and economically unstable regions.
(Example: Nigeria | Protecting Assets from Government Account Freezes) - Low Fees
→ Facilitates international transactions and allows for micropayments (small transactions) that were previously impractical due to cost.
(Example: Tipping Small Amounts)
Some use cases make use of Bitcoin's unique characteristics, while others might be possible without Bitcoin.
For example, "donating Bitcoin to non-profit organizations" requires trusting that the organization is using Bitcoin appropriately, which seems a bit different from Bitcoin's decentralized and trustless nature.
This article aims to highlight how Bitcoin is used worldwide by showcasing a wide range of examples.
Some might think "Bitcoin has no practical use!" but in reality, it's being utilized in various ways, and knowing that "having the option of Bitcoin can provide opportunities to change lives" is important.
[Summary] Practical Use of Bitcoin is Gradually Advancing!
Key Points
- Bitcoin's use cases include leveraging its fast transaction speed and low fees.
- Bitcoin can be sent anywhere with internet access, and there are cases where it can be accessed with feature phones (older mobile phones).
- In Japan, there are stores where you can use Bitcoin for payments, and there are apps that allow you to tip tiny amounts of Bitcoin.
Bitcoin is faster and has lower fees compared to traditional payment methods, so it's actually being used in various scenarios!
In countries with high inflation, some people are holding Bitcoin to protect their assets.
Also, there are instances where individuals' bank accounts are frozen worldwide, and Bitcoin, which can be self-managed, is becoming valuable in such situations.
Bitcoin seems difficult and unclear, but now I feel like I want to learn more about it.
Let's learn more about Bitcoin!
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Writer：Sigeru Minami
Creator of "Bitcoin-zukan.com."
Active as a handmade craftsman of Bitcoin goods.