When we talk about Blockchain and crypto, we often hear many idealistic utopian scenarios in which an entire society reaches financial equality because we all get rich. While these entirely optimistic scenarios are unrealistic, the cryptosystem was created to improve the world’s financial system—nothing more, nothing less.
But, of course, with the help of cryptocurrencies, projects, and funds, we can donate and help while improving financial inclusion worldwide. This is because finances are a vital part of our lives, without which we cannot live properly. Therefore, improving services, whether through complete decentralization, hybridization, or even crypto assets in centralized systems, could simplify our lives.
How can we properly use cryptocurrencies?
The general opinion of the world is that these digital assets are utterly useless because we cannot use them in the real world. Many serious crypto companies offer employees the option to choose cryptocurrencies as payment. They provide annual bonuses through crypto. However, even if we do not work for one of these companies, we can still spend our profits on transactions in many ways. First, we choose an honest percentage with which we pay our taxes.
If we like to play video games, we can directly use cryptocurrencies in games built on Blockchain. In real life, we can order luxury goods for which we can pay with crypto or travel to places where Bitcoin is accepted as the official payment currency for taxes, goods, or services, such as El Salvador and the Central African Republic. Lugano, Switzerland, is another excellent example, where Tether is recognized as an official unit of account.
How do cryptocurrency payments work?
It is essential to mention how much technology has developed over the years. For example, if only ten years ago we had to exchange Euro for any local currency at foreign exchange offices when we went somewhere, now we only bring the credit or debit card closer to a POS, and the payment processor automatically converts the money into local currency for that store, at the current exchange rate. Well, nowadays, we can also make such payments with cryptocurrencies.
A crypto payment processor works precisely the same way. We can pay with the chosen cryptocurrency on the card, which is transferred in real-time in the currency accepted by the provider. The education and awareness of cryptocurrencies are slow, but people want to protect them. So these are perfect solutions for customers.
Cryptocurrency Cards
Crypto exchange companies do not give up and continue to offer the option of cryptocurrency cards, which can be credit or debit and are exactly like ordinary cards. If we have cryptocurrencies and want to use them to buy certain things, we usually have to sell, transfer the money from exchange to account, link our account to a debit card from a bank where we most likely pay commissions and wait a while. Also, if we transfer over 1,000 euros, given the EU regulations under discussion, we may receive calls for those amounts. We don’t need this whole process if we have a crypto card.
What are the advantages and disadvantages of cryptocurrency payments?
As we saw above, an advantage is our economy and freedom of movement with a crypto card. In addition, the information is transparent but secure, and the risks for both sides are very low. Also, some companies offer Visa crypto and cash back with the card – when we receive a percentage back from the transaction.
On the other hand – these card companies charge fees, so it is crucial to make the right choice and order such a service only if we know we are using it. By the way, these payment processors are ok – but in Lugano, we would be asked to pay directly with crypto. Furthermore, BTC is still a volatile cryptocurrency and not a stablecoin, so it would depend significantly on the current market to satisfy those transactions.
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Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs, and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas, or strategies discussed herein.
