What Can You Buy with Cryptocurrency?
While crypto is already popular worldwide, people often ask “what can you buy with cryptocurrency?” There was a time when cryptocurrency seemed like another internet scam. Today, with cryptos like Bitcoin, you can buy anything from a dress on Shopify to a cup of iced coffee at your local Starbucks. In this article we’re going to discuss exactly what can you use cryptocurrency for.
Cryptocurrency is gaining popularity in the world today as governments and individuals learn to accept that digital money has come to stay. Despite the buzz, there’s still an air of uncertainty surrounding cryptocurrency.
Where can you use cryptocurrency? What can you buy with cryptocurrency? Is crypto even a legal form of payment? We want to answer some of that for you today.
What can you use cryptocurrency for?
Hopefully if you’re reading this you already know what cryptocurrency is. The next question after that usually is what can you use cryptocurrency for? There are 4 major uses for crypto.
- An alternative store of wealth: One of the reasons why cryptocurrencies are so popular is their use as a censorship-resistant store of wealth. Bank accounts can be frozen at any time and transactions can be reversed with traditional currencies. With cryptocurrencies this can’t happen. They are safely locked away in the owner’s e-wallet where no one else can access them.
- Earning interest with DeFi yield farming: While many investors hold their cryptocurrency and wait for long-term gain, yield farming can provide a better option. Yield farming is when crypto holders invest their assets in things like peer to peer lending platforms or staking protocols to earn a little extra interest
- Private transactions: With no centralized entity regulating cryptocurrency use, you can make private transactions. You get a pseudonymous identity when you’re transacting on the blockchain. This means you never have to reveal your identity while making transactions.
- Limitless transfers: A few years ago, you had to go to a bank and stand in line to transfer money. Today, you can simply make that transaction from the comfort of your couch using your phone. You can transfer as much as you want without a separate entity second-guessing your movements. This is not the case if you’re making a transfer through a traditional banking system.
- A means of payment: Crypto was originally created as a cash substitute. While it has been slow to catch on, crypto finally has some use cases as a form of payment.
How to spend cryptocurrency
What can you buy with cryptocurrency? Here’s where it gets a bit complicated. One of crypto’s biggest criticisms is that it still can’t be used as an independent currency in most places. But with a growing number of merchants now accepting it, that may soon change.
- Cryptocurrency debit cards: You can connect your cryptocurrency to a debit card and spend it like normal cash. Credit card companies like MasterCard and Visa issue credit cards that let you spend your crypto just like normal cash. Unfortunately most cards are only available for Bitcoin. However, credit card companies like Uquid, Tend, and Polybius are available for other cryptos.
- Spend directly from your wallet: You can spend your crypto directly from your wallet. This is made possible by online retailers who accept direct payment using third-party apps like Crypto pay and Bitpay. Online retailers like Microsoft, Overstock, Virgin Galactic, eGifter, Namecheap, Fancy.com, Newegg, and pizzaforcoins allow you to spend directly from your wallet.
Is using cryptocurrency legal?
When cryptocurrency was created back in 2009, governments in many countries were understandably skeptical about its potential. Over a decade later, there are still many countries where cryptocurrencies are fully or partially banned.
Due to the untraceability of secured private transactions, many scammers have switched to Bitcoin for their fraudulent activities. In countries where cryptos are not banned, they are usually fully-regulated as assets rather than a currency. This means they’re subject to taxation laws similar to stocks.
Despite legal setbacks, a lot of progress towards increasing the use of crypto has been made over the past few years. Cryptocurrencies are legal in the US, UK, Japan, Canada, and many other developed countries. Recently, India lifted its ban on crypto trading.
More countries are expected to follow suit in the near future.
More than 10 years after its inception, most can agree that crypto is here to stay. If you want more info on where you can use cryptocurrency you should come check out the MyConstant blog. Here we discuss how crypto is changing modern finance and creating new investing opportunities around the globe.
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