Cryptocurrency

Why Do People Spend Money On Cryptocurrency?

Cryptocurrency itself is another form of money; it is a decentralized digital currency that was introduced way back in 2009. There are various ways in order for one to obtain a cryptocurrency, in which, in most cases, one must have money to trade with. Money is involved; it would take a lot of thinking for one to jump into trading; one must have basic knowledge on what cryptocurrency is and what they are getting into. However, many developers and crypto experts have been discussing that we are not yet able to see cryptocurrency being used in day-to-day lives, it being in the early stages. 

Different kinds of exposure feed into cryptocurrency’s popularity, from a high engagement crypto community on Facebook, trending crypto topics on Twitter, and even celebrities investing in cryptocurrency like Elon Musk popularising Dogecoin.

Bitcoin specifically, marking an all-time high, and it is accepted by legit financial institutions can only mean that cryptocurrencies are becoming a big part of finance and technology.  

On Day to Day Transactions

Each day millions of transactions happen via popular platforms like Immediate Edge, sending and receiving bitcoin is such a norm nowadays. Everything is going digital, and even in finance and payment, we are slowly moving into a paperless future. However, since the currency is still at an early age, there would still be issues with transactions. As of now, there is no easy way of buying, sending, or even spending cryptocurrencies; that is why developers and experts are still on the goal to make the trading process to be more approachable to regular people. Its volatility would also affect how people spend their cryptocurrency.

It was mentioned in CNBC’s article that a senior economist at Chain analysis, Kim Gauer, was having a trip with her boyfriend to Tulum, Mexico when the couple passed by a restaurant and noticed a sign saying it accepts cryptocurrencies as payment. “It was not the last place I saw it; you’ll surely see it popping out in different locations”, she added. 

Progress is still in the process of fully adopting cryptocurrencies; developers and financial institutions are making it possible for us, create a user-friendly app in which you can trade and manage your crypto. In fact, a financial technology company, Bitwala, is said to be opening a bank exclusively for cryptocurrency, which will happen a few months from now. A debit card will be provided to the account holders; the holders can pay for food, grocery or services, and the bank will automatically convert their crypto into traditional currency, as mentioned in CNBC’s article. That is why most consider trading cryptocurrency because it might be helpful in the future. 

There are also cryptocurrency automated machines as of now, like CoinSource. GoCoin makes it possible for merchants to go to a bitcoin-accepting store. And Purse.io helps buyers shop with cryptocurrency, which they can even purchase on Amazon. 

In New York, a rental platform already offers cryptocurrency as a mode of payment to rents and maintenance services. It was offered all throughout the country in more than 400,000 units, it was also claimed that 38 people already paid using their cryptocurrency, and that is according to Chaim Lowestain, vice president of business strategy at ManageGo.

On Volatility

Seeing all the possibilities of cryptocurrencies, it is still important for one to understand their volatility. It is not new for us to hear that a certain cryptocurrency like Bitcoin, Etherium, Cardano, and to the other thousand existing as of now, their value can wildly go high or low. Even though volatility can be seen as a risk, it is also one of the factors investors consider, especially since most young people grew up with social media and video games are used to fast-paced cycles and instant gratification. People also get excited by the fact that cryptocurrencies have the potential to be life-changing technology; that is why regardless of its volatility, most people still choose to invest as soon as they can. 

Factors to Consider Before Spending Money on Cryptocurrency

Nothing would beat learning and listen to experts about cryptocurrency; by doing it yourself, you would have the perfect grasp on what you might be taking yourself into. The history and basic background of your chosen cryptocurrency should be analyzed before making any decision, as well as its circulation and market capitalization, which are also to look out for. Cryptocurrencies over the top value are something you should not obsess about or get stuck on. Analyzing cryptocurrencies’ highs and lows, people also check their reputation and overall stability, which might get you thinking about spending.

Vasid Qureshi

Vasid Qureshi is an Independent journalist, entrepreneur, digital markter, and press release publisher. You can follow him on Facebook/Instagram/Twitter @vasidq

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