Approximately 17% of the US population has invested in cryptocurrency, meaning hundreds of millions of people hold Bitcoin and other cryptocurrencies.
Eventually, these people will want to spend their holdings. Previously, doing so was challenging and required intermediary services. However, the ways people can spend crypto are evolving, with many industries beginning to adopt the technology. PeerGame’s research highlights the top sectors supporting this shift in crypto spending. Here are the key sectors leading the way.
1. Gaming
Cryptocurrencies first found their way into gaming in around 2017. The popularity of cryptocurrency games has since exploded as they enabled people to earn crypto rewards while playing. Projects like Axie Infinity and Gods Unchained are exceptionally popular and generate millions of transactions.
The sector was particularly responsive to the integration of crypto as in-game items like cosmetics are well-suited to tokenisation and trading. Some items offer passive rewards or yield in some form, which prompts people to spend large sums of crypto on them.
For example, the Angel Axie from Axie Infinity sold for 300 ETH or approximately $822,000 based on today’s prices. Moreover, the Hyperion card in Gods Unchained sold for 137 ETH, worth around $375,000 based on Ethereum’s current value, indicating a willingness to spend crypto on games.
2. Luxury Goods
Cryptocurrency spending is transforming the luxury goods industry, leading brands to accept cryptocurrency payments and offer exclusive products only available through crypto.
High-end brands like Gucci, Louis Vuitton, and Tag Heuer are paving the way for the integration of crypto and luxury items through non-custodial crypto payment gateway implementation. Gucci partnered with BitPay in 2022, enabling customers to pay with Bitcoin, Ethereum, Bitcoin Cash, and Litecoin in select boutiques around the US.
Brands like Adidas have released NFT collections entitling holders to physical merchandise like hoodies or trainers. Similarly, platforms like Bitdials and CryptoEmporium let people purchase luxury goods like watches, cards, clothes, and property with crypto, bridging the physical and digital worlds.
3. Art and Collectables (NFTs)
Non-Fungible Tokens (NFTs) are unique digital items that exist on the blockchain, granting them provable ownership. People can transform digital assets like art, songs, or in-game items into NFTs through a process called minting.
NFTs can be art, music, or tokenised items. Projects like Top Shots saw NBA highlight videos turned into NFTs, while world-famous artist Damien Hirst ventured into the space with a collection dubbed “The Currency”. Celebrities like Snoop Dogg and Eminem also publically purchased NFTs.
Searches for the word “NFT” surged, rising from just 2,988 in December 2020 to 3,855,099 in January 2022 in the US alone, indicating a substantial increase in interest and demand for the assets. With a second surge expected in March 2025, the NFT market seems poised for expansion in the near future.
4. Travel and Experiences
Cryptocurrency has become a popular payment method in the travel and experiences sector, which deals with international customers and must exchange many currencies. Some platforms even pass on savings and offer discounts to customers who pay with Bitcoin.
Using cryptocurrency to pay for travel or experiences has several benefits, centred around reduced fees, avoiding currency exchanges, and the ability to use one currency globally. Businesses in crypto-friendly tourist hotspots, like Dubai, often accept Bitcoin, letting people book local excursions with crypto.
A growing number of travel/experience businesses accept cryptocurrency. Some examples include Alternative Airlines, Bitcoin.Travel, and Travala, which enable people to book flights, hotels, and activities using Bitcoin and other cryptocurrencies.
5. Real Estate
Real estate has taken on a unique form through the integration of cryptocurrency. As we mentioned, people can buy property using crypto via platforms like CryptoEmporium. However, digital property in virtual worlds known as the metaverse has also become an in-demand commodity.
Metaverse worlds like The Sandbox and Decentraland let people buy virtual plots of land on which they could build experiences or businesses to generate revenue. The term ‘metaverse’ had the most interest in 2021, coinciding with Facebook’s rebranding to Meta.
A plot of land in The Sandbox sold for $4.3 million in 2021, just weeks after land in Decentraland changed hands for $2.43 million. While demand has dropped somewhat, metaverse worlds still have an active community where people still buy, develop, and sell land for substantial amounts.
