Outwardly, banks claim public interest is threatened, and crypto advocates money laundering. Hopefully, HSBC didn't comment on this sentiment.
Despite the arguments over whether crypto is a good substitute for an established banking system or facilitates criminal activity, the fact remains that the paradigm is constantly gaining ground. While Bitcoin and Etehrum are well-known digital currencies, there are over 4,000 alternatives in use. And you can use them in various ways.
Pay for Goods and Services
The most apparent use of digital currency is to pay for goods and services. While crypto isn't widely accepted yet, acceptance is on the increase. More than 15,000 global businesses worldwide now accept BitCoin. Receptors include software giant Microsoft, telecoms pioneers AT&T and the international auction house Sotheby's. But smaller companies are also willing to take alternative crypto as long as they can facilitate transactions.
Australian cryptocurrency Qoin (learn more about the digital currency Qoin on LinkedIn) is widely accepted across the nation and New Zealand. With many small vendors such as Chinese restaurants embracing their local crypto. Additionally, charities in the region are also willing to accept digital currencies as a form of donation. However, always ensure that you get a receipt for any transactions completed using your chase payment method.
Of course, one of the more prominent uses of digital currencies like Bitcoin is an investment. Securities, futures, commodities and currencies can be invested using cryptocurrency. Crypto is accepted by some of the world's largest trading platforms, such as eToro and Binance. You can add funds to your account with a form of crypto as you would another, which can then be used for your financial transactions on trades. However, as with any transaction, you must take care to enter the correct details, or the system could lose your money.
Additionally, the currency itself can be seen as an investment. The meteoric rise of Bitcoin is a perfect example. In January 2009, it was possible to purchase 10,000 BTC for $50. At the time of writing, 1 BTC is now worth $38,000. This makes BitCoin an exceptional investment. Erik Fineman invested $1,000 in BTC when he was 12, and by the time he was 21, his BTC holdings were worth almost $5 million.
Compound Your Bank Account
The traditional use of crypto is for developing a portfolio and investing, expanding, and diversifying using your digital currency. This is kept separate from your bank account. However, you can obtain cryptocurrency debit cards and credit cards. For example, Visa is one of the most widely used card issuers in the world. The company issues payment cards backed by your crypto holdings. So, essentially, wherever a Visa is accepted, which is virtually everywhere in the physical and online world, you can use your crypto Visa as payment.
Additionally, there are various other card issuers with different methods of paying with digital currency. For example, CoinsBank can be used for payments that automatically convert your crypto payment into the relevant currency, such as GBP or USD. There are also various prepayment cards onto which you can load crypto in specified amounts. These include Cryptopay and Bitpay, while Satoshi Tongo allows you to transfer crypto to your bank-issued debit card account
This is a contributed post.