19 November 2019, 20:11
2 min reading
Cryptocurrencies keep growing popular, and much of the credit for this goes to the historic rise of Bitcoin back in 2017. Most users, however, still view Bitcoin and other cryptocurrencies as an investment as these are actively traded around the world through online cryptocurrency exchanges. In reality, that’s just one of the many uses of
Cryptocurrencies keep growing popular, and much of the credit for this goes to the historic rise of Bitcoin back in 2017. Most users, however, still view Bitcoin and other cryptocurrencies as an investment as these are actively traded around the world through online cryptocurrency exchanges. In reality, that’s just one of the many uses of cryptocurrencies.
The primary goal of Bitcoin and other digital currencies was to present offer a decentralized alternative to traditional currencies managed by governments. Currencies that can work with any intervention from banks and other financial authorities. Just like traditional currencies, cryptocurrencies are intended to be used for daily transactions.
Such use, however, remains limited by two factors: the wild volatility affecting cryptocurrency prices, and the small number of businesses accepting them as a payment method. No need for long faces. The recent introduction of stable cryptocurrencies, also known as “stablecoins”, has helped mitigate the opportunity cost of using digital currencies for daily purchases.
Moreover, the increasing number of cryptocurrency holders worldwide is pushing big retailers to integrate cryptocurrencies to their payment systems. Nowadays, there are also alternatives that allow holders to pay with cryptocurrencies in shops that do not officially accept them.
For instance, you can spend traditional currencies using debit cards, credit cards, mobile wallets, physical tokens and more. Similarly, the methods to spend cryptocurrencies are also expanding. Some of the most popular and user friendly ones are discussed below.
Cryptocurrency wallets are doing more than just storing your digital assets. Ok, not all of them. We are mainly referring to mobile and web-based wallets, which allow you to quickly access your funds anywhere as long you have an internet connection.
Depending on which crypto wallet you are using, the process variates in difficulty. If you are a Crypterium Wallet user, the process of paying with cryptocurrencies is pretty smooth. After launching the app, you enter the recipient’s address, enter the specific amount and click “Send”.
If you have ever seen a blockchain address, you know it isn’t really something to easily remember or copy. That said, merchants are nowadays opting to include a QR code at the counter, which you can scan with your bitcoin wallet and pay even faster.
Due to the volatility of cryptocurrency prices, most merchants set a specific timeframe for you to send the funds, usually 30 minutes. Once they receive the funds, your purchase is done.
Alternatively, there are some built-in services that you can get directly from your wallet. Crypterium Wallet users can top up their mobile phones with crypto in only a few taps.
If you think the method above is a bit messy, then cryptocurrency cards are just what you need. Crypto cards are no different than regular bank cards. The only difference is that instead of topping them up with dollars or euros or any other fiat currency, you use crypto.
One major advantage of debit cards is that you can purchase in any store that accepts the cards. For merchants also it is beneficial as they get the payment in fiat currency and don’t need to have any interaction with crypto whatsoever.
Crypto debit cards are a great innovation as they allow you to make your daily purchases using cryptocurrencies with a well-known payment format.
Despite being one of the best ways to spend cryptocurrency, most card companies are only available on specific countries. To date, the Crypterium Card is the only cryptocurrency prepaid card that is delivered worldwide. Since its launch in mid-2019, the card was delivered to over 180 countries.
Now, let’s imagine for a second that your cryptocurrency wallet does not offer a wide range of options to spend cryptocurrencies. In fact, it only lets you store some of them. If merchants do not accept bitcoin payments, then you’re kind of out options. Aren’t you?
Well… Not quite. In fact, the cryptocurrency boom in 2017 promoted the development of intermediaries that helped holders to buy goods and services with cryptocurrencies. One such service is Pizza for Coins, which is available in every major US city and allows you to purchase pizza using your digital coins. Just do us a favour, don’t use Bitcoin for it.
Similarly, some services allow you to buy gift cards using your cryptocurrency. You can then redeem that gift card at supported merchants, both online and brick-and-mortar stores. eGifter is one of those services, and it allows you to buy gift cards that can be redeemed at Amazon, Target and other major retailers.
The above-mentioned ways to spend cryptocurrencies are convenient, but they do involve some transaction fees. To overcome this, you can use your digital coins directly to make a purchase online or at brick-and-mortar stores. Of course, that’s not an option widely available.
Some of the popular companies that accept cryptocurrencies are Microsoft, Virgin Galactic, NameCheap, Expedia, NewEgg, among others. Even WordPress allows you to use cryptocurrency for a few plugins.
You can also spend your digital coins on places like OpenSea, which is a Digital ERC Marketplace for intangible products like digital art, pets, and land. Ethereum-based products, such as Crypto Kitties, Ethermonand Hyper Dragons are also available on this platform.
Cryptocurrency donations are gaining momentum too. Recently, the UNICEF began accepting cryptocurrencies as donations. WikiLeaks, The Water Project, Red Cross and Save the Children have also added blockchain-based currencies to their donation alternatives.
Going ahead, we can expect more ways to spend cryptocurrencies. Crypterium, for instance, is also working on allowing holders to send funds straight to business bank accounts, making it possible to pay for bills, taxes and other regular expenses with cryptocurrencies.