How is Bitcoin used?
Bitcoin has changed a lot since it was created. It started as a simple digital cash system. Now, it is a powerful asset with many real-world uses.
Here is a non-exhaustive list of how people use Bitcoin around the world today.
To protect long-term wealth
Bitcoin has become a legitimate “store of value”. This means investors increasingly use it to protect long-term wealth. Examples include:
- Wealth protection for investors: With the rise of Bitcoin exchange-traded products (ETPs) and exchange-traded funds (ETFs), an increasing number of investors are using bitcoin to hedge against rising national debt, treating it much like a digital version of gold.
- Saving in unstable economies: In countries like Argentina or Lebanon, people use bitcoin to escape hyperinflation. Because its supply remains fixed, it helps them maintain their "buying power" when local money fails.
- Government reserves: Governments are now adopting it as a strategic asset. The United States started a Strategic Bitcoin Reserve in 20251. Many US states are now passing or discussing similar laws.
- Corporate treasuries: Major companies like Tesla2 and Strategy3 now hold bitcoin on their balance sheets. Currently, institutional demand is growing three times faster than the supply of newly created bitcoin4.
To facilitate humanitarian aid funds
Nonprofits like the Human Rights Foundation5 and Save the Children6 accept Bitcoin to facilitate transparent, borderless donations. In times of crisis or restricted banking environments, Bitcoin allows charities to deliver aid quickly and efficiently. Since a public ledger tracks every transaction, it reduces the risk of misappropriating aid funds.
To stabilize renewable energy grids using flexible mining
Bitcoin mining is increasingly used as a flexible energy load to improve the economics of renewable power, especially in regions with frequent excess supply. Wind and solar often generate electricity when demand is low, forcing grid operators to curtail production or sell power at very low prices.
Bitcoin miners can absorb this surplus energy by operating during off-peak periods, providing a consistent buyer for otherwise wasted electricity. Because mining operations can shut down within seconds, they can also reduce demand quickly during periods of grid stress, participating in demand-response programs such as those used in ERCOT.
This flexibility helps renewable projects in two ways: it raises the minimum revenue they can earn from excess generation and improves project financing by reducing revenue volatility. In turn, this can make new wind and solar projects more viable, especially in remote areas where transmission capacity is limited.
Footnotes:
- Executive Office of the President. (2025, March). Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile. The White House. https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserve-and-united-states-digital-asset-stockpile/
- Bitcoin Treasuries. (n.d.). Tesla (TSLA) - Bitcoin holdings. https://bitcointreasuries.net/public-companies/tesla
- Bitcoin Treasuries. (n.d.). MicroStrategy (MSTR) - Bitcoin holdings. https://bitcointreasuries.net/public-companies/microstrategy
- CoinGecko, “Bitcoin Holdings by Public Companies” (accessed June 2025)
- Human Rights Foundation. (n.d.). Bitcoin Development Fund. https://hrf.org/program/financial-freedom/bitcoin-development-fund/
- Blockchain Reporter. (2025, February 21). Save the Children launches a Bitcoin-powered funding model for crisis relief. https://blockchainreporter.net/save-the-children-launches-a-bitcoin-powered-funding-model-for-crisis-relief/
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