Nowadays, you can pay for many things with your cryptocurrencies. Large companies, such as the AMC movie theater chain or the Tesla car company, already accept crypto payments for their products.
Although more and more companies and businesses are implementing crypto payments daily, this is still not the most common option. Luckily for all of us who want to pay our daily expenses with our cryptocurrencies, there are other options, such as Bit2Me Card, a card linked to cryptocurrencies.
Should You Make Payments With Crypto?
That is a great question. You may think that the price of cryptocurrencies is too volatile; what you pay for a coffee today may be the price of a dinner for two tomorrow.
That is one of the reasons why the vast majority of people believe that cryptocurrencies are an investment but not a payment method.
However, in some cases, paying with cryptocurrencies is a good option. For example, in countries where fiat currency is highly volatile or where most of society is unbanked, cryptocurrencies can be an excellent option for everyday purchases.
Bitcoin and other cryptocurrencies are widely used for cross-border payments, international payments, and remittances. That is because international transfers over blockchain are much more efficient, both in time and cost.
These types of cryptocurrency transfers are much faster, as they do not require validation from a central entity, meaning that it does not matter what day or time it is, as the blockchain works 24/7.
The Essence of Bitcoin
The original essence of Bitcoin is to replace traditional fiat money with a new form of digital and decentralized currency. In its original whitepaper, Bitcoin is described as a “peer-to-peer electronic cash system”.
That is, the natural essence of Bitcoin is to serve as a peer-to-peer form of payment rather than as a long-term investment or hedge against inflation.
However, the scarce nature of Bitcoin (its issuance is limited to 21 million) causes its price to rise over time, which is why it is often considered an investment rather than a means of payment.
In addition, the way the blockchain processes transactions presents another problem. Bitcoin is somewhat slow, as it can only process about 7 transactions per second (TPS), which is very few compared to the more than 24,000 TPS that VISA or Mastercard systems have.
Fortunately, this is changing thanks to the so-called Layer 2 Solutions, such as Lightning Network, which bundle, or roll-up transactions outside the network (on Layer 2), to send them together so that the speed of transactions increases and Bitcoin becomes a viable form of payment.
Paying With Altcoins
So, are cryptocurrencies a viable payment option? Absolutely yes. Despite everything we have explained, Bitcoin is still an excellent payment method. Furthermore, many cryptocurrencies have been specifically developed to function as a means of payment.
Apart from stablecoins, which are cryptocurrencies pegged 1:1 to fiat currencies, such as the Euro or the Dollar, there are other cryptocurrencies specially designed to function as payment systems, such as Dash, Monero, or XRP.
These cryptocurrencies can process thousands of transactions per second and have much lower, in some cases non-existent, transaction fees.
What Are Crypto Debit Cards?
These are debit cards that allow you to pay using your cryptocurrencies. To do this, crypto cards are linked to a crypto wallet, and the funds of this wallet are used to make payments.
Crypto debit cards allow you to use your cryptocurrencies to pay for anything immediately, just as you would with traditional fiat money, with no conversions or long confirmation times.
Unlike cryptocurrency payment gateways, you will not have to do any conversions or swaps, as payments are made through the VISA or Mastercard system. Simply put, instead of being linked to a bank account, these cards are linked to your crypto account.
For example, as the Bit2Me Card can be linked to any of your crypto wallets, you can choose which token to pay with and switch wallets at any time.
How Do They Work?
These cards automatically convert your cryptocurrencies into fiat money, making payments immediately. They also allow you to withdraw money from any ATM.
Crypto cards are quite similar to traditional credit and debit cards, except that they take funds from your crypto wallets, not your bank account.
Is It Worth Paying With Cryptocurrencies?
Unlike other cryptocurrency payment methods, crypto cards have no transaction fees, making them an excellent option for anyone who wants to use their cryptocurrencies for everyday expenses.
In this sense, crypto cards allow you to expand the use cases of your cryptocurrencies. Moreover, since you can choose which cryptocurrency you want to pay with, you can use only the ones you do not need or no longer wish to hold.
Blockchain and crypto networks are much more stable and secure than traditional systems. Besides, they offer you much more freedom since you do not have to work with a bank if you do not want to.
And last but not least, keep in mind that crypto cards offer cashback, which allows you to get back a part of what you pay. Bit2Me Card offers you up to 9% cashback, one of the highest market rates today, so you can get back a good part of what you paid with your cryptocurrencies.