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/

‍

Share

This report has been prepared and issued by 21Shares AG for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however, we do not guarantee the accuracy or completeness of this report. Crypto asset trading involves a high degree of risk. The crypto asset market is new to many and unproven and may have the potential not to grow as expected.Currently, there is relatively small use of crypto assets in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect an investment in crypto assets. In order to participate in the trading of crypto assets, you should be capable of evaluating the merits and risks of the investment and be able to bear the economic risk of losing your entire investment.Nothing herein does or should be considered as an offer to buy or sell or solicitation to buy or invest in crypto assets or derivatives. This report is provided for information and research purposes only and should not be construed or presented as an offer or solicitation for any investment. The information provided does not constitute a prospectus or any offering and does not contain or constitute an offer to sell or solicit an offer to invest in any jurisdiction. The crypto assets or derivatives and/or any services contained or referred to herein may not be suitable for you and it is recommended that you consult an independent advisor. Nothing herein constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation. Neither 21Shares AG nor any of its affiliates accept liability for loss arising from the use of the material presented or discussed herein.Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors.This report may contain or refer to material that is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject 21Shares AG or any of its affiliates to any registration, affiliation, approval or licensing requirement within such jurisdiction.