Cryptocurrency has not yet become an official payment instrument in most countries, and the words ‘Bitcoin’ and ‘Etherium’ still sound weird to many people. However cryptocurrencies can be used in many ways both online and offline.
Here are 6 reasons to use crypto for yourself, your loved ones and for people in need.
Reason 1. To pay for whatever you usually buy
Any imaginable physical goods that can be purchased online at Amazon, eBay or any other marketplace, can be also bought with cryptocurrencies. At first, though, you’ll need to buy a gift card.
1000 GBP Amazon gift card is sold for £1,065 at CoinsBee.
Cryptocurrency is also accepted by many major brands that operate offline. For example:
🍗 KFC in Canada has added a bucket of fried chicken to the menu, which can only be purchased with cryptocurrency. A courier tells the Bitcoin address on which the money should be sent.
🛒 Walmart has installed cryptocurrency ATMs, where you can buy special gift cards with crypto. So now it is possible to pay for groceries with Bitcoin right in the supermarket.
👟Nike sells sneakers for cryptocurrency, although not real, but virtual ones. A pair of digital shoes costs from $6,000 to $9,000.
Other companies that accept cryptocurrency are Microsoft, Starbucks, Apple, Hotels.com, Uber, Adidas, Burger King, Columbia Sportswear, Google Play, UNICEF, Subway, Pizza Hut.
In the United Arab Emirates, an apartment can be bought for Bitcoin, in the Czech Republic you can buy a car, and in Cyprus you can even get a university degree fully paid via cryptocurrency.
It’s only 20 BTC! See more UAE property offers for Bitcoin at FamProperties.com.
Reason 2. To buy stable currency at a favorable rate
Some cryptocurrencies are tied to the national currency. For example, Tether USDT token is valued at 1 US dollar, CryptoFranc (XCHF) – at 1 Swiss franc, and bitCNY – at 1 yuan. Cryptocurrencies like those are called stablecoins.
Most often, it is more profitable to buy a stablecoin than a fiat currency just to keep money or to transfer it.
Reason 3. To transfer money worldwide with little to no commission
When making a money transfer from one bank account to another, you usually have to go through bureaucracy and pay a solid fee. There are no such problems with cryptocurrency. No central authority governs most cryptocurrencies, and the transfer fee is low
For example, the commission for a bitcoin transfer in October 2022 is $0,5-0,6. And no paperwork is required as it’s just like handing a bill to a friend on the street.
According to YCharts, on April 21, 2021, the transfer fee was quite high, nearly $62,79. Even though, in several cases one would pay more for a bank transfer.
Bank transfer takes 3-5 working days. If you send money on Friday, you would have to wait almost a week. Bitcoin transfer takes from a few seconds to an hour, but most often it takes just 15 minutes.
There are also inconveniences with cryptocurrency. Most hotels, cafes and shops accept only the national currency so far (or US dollars in tourist areas). Therefore, after receiving the transfer, the cryptocurrency will need to be cashed out. In some countries, there are crypto ATMs for this goal (you can find them through special maps, for example, coinatmradar). A simple way is to withdraw your Bitcoin to a plastic card issued in a local bank. But if you don’t have one, you would have to find a local cryptocurrency holder that would help you out. In each case, you will pay commission.
Reason 4. To keep your money safe
Any currency, and especially cryptocurrency, is subject to market volatility. Obviously some currencies are more stable than the others, for instance, the US dollar or Swiss franc are stable. In the meantime, cryptocurrencies can grow by hundreds of percent within one trading day.
A rule that can often be heard in the crypto environment is not to keep all the eggs in one basket. This means that it is better to use several different ways of storing money: cryptocurrency, a deposit in a bank, under a pillow.
Cryptocurrency is a good way to diversify a portfolio as it doesn’t depend on politics of the governments, raw materials or precious metals price. In addition, the developers of many cryptocurrencies have prudently made them deflationary: this means that in any case, the coin will only get more expensive over time (for example, the most popular cryptocurrencies are deflationary – bitcoin and ethereum) Earlier dollars, euros and yuan were bought for diversification, and now investors have an additional way to reduce portfolio risks.
Reason 5. To invest and gain profits
Cryptocurrency is an asset that grows in price faster than any currency or stock. Here's how the value of some tokens has changed in 2021:
🔹 SEEK VR (SEEK): +32 550%
🔹 Axis Infinity (AXE): +19 044%
🔹 Eco mi (OMI): +16 220%
🔹 The Sandbox (SAND): +17 446%
🔹 Terra (LUNA): +17 152%
The peak growth of CEEK VR happened in November 2021. The historical maximum yield was 65,532%.
CEEK VR chart at Coinbase. Restless growth is usually followed by a recession. However, the low amount of minimal purchase ($0,13 only) allows us to manage risks with ease.
It has to be mentioned that cryptocurrencies prices fall just as fast as they grow, and the reasons for the recession are often unpredictable. For example, in June 2022, the credit company Celsius Network suspended transfers and withdrawals of cryptocurrencies, citing some ‘extreme’ conditions. Bitcoin slumped over 37.3% which was a record decline in 11 years. Most altcoins also lost in price. Who would have thought that Celsius Network would stop issuing cryptocurrencies, and then file for bankruptcy?
Now there is a recession (the so-called crypto winter): but, as history teaches, decline is always followed by growth. In this article, we clearly explain whether bitcoin has prospects, what they are and what to do now.
Reason 6. To give for charity
You can donate your crypto to a good cause. Major international charitable foundations accept BTC, ETH and other cryptocurrencies:
🍲 Food for Life feeds people in poor African and Asian countries with vegetarian food. There are programs promoting vegetarianism, ecological gardening and animal rescue. This is one of the first foundations where they started accepting donations in cryptocurrency.
💉 Leukemia & Lymphoma Society helps people fight against different types of cancer, receive effective treatment and conduct medical research. From time to time they launch different non-cancer charity programs, for example, in the fall of 2022 they raise funds for victims of Fiona and Ian hurricanes.
🐈 Wright-Way Rescue saves abandoned cats and dogs, organizes public educational events, fosters animals. Those who wish can take training and become volunteers in animal shelters, as well as take a pet home.
👶 Save the Children helps children in hundreds of countries around the world to get healthy food and education, and ensures safety. They build schools and hospitals, help people evacuate from natural disasters and wars.
There are also charitable foundations that accept donations specifically in cryptocurrency. For example, BitHope, Giftcoin, GiveCrypto, Giveth, Crypto Charity Fund and Helperbit. Crypto funds are usually aggregators. For example, using CryptoForCharity, you can donate cryptocurrency to one of 55 thousand charitable foundations. The aggregator reserves about 5% of the donation amount, and the rest goes to charity.
BitHope lets you choose from different crowdfunding campaigns.
Is cryptocurrency legal in my country?
Well, that depends on your local laws. Due to anonymity, cryptocurrency raises financial concerns for governments worldwide. While tax authorities and regulators debate whether to allow cryptocurrencies or not, people wonder if they can use Bitcoin legally.
Some countries still don’t have a ‘cryptocurrency law’, according to Statista.
In most developed countries cryptocurrency is legal. Some governments try to regulate it, most often it happens in Africa and Middle East. Only a few countries prohibit the usage of cryptocurrency.
This article is not an investment recommendation. The financial transactions mentioned in the article are not a guide to action. Itez is not responsible for possible risks. The user should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.