The choice of cryptocurrency versus traditional currencies is a relatively new dilemma. Even though Bitcoin launched back in 2009, it is only in recent years that it has become common to be able to use crypto in day-to-day life for things like depositing into your gambling accounts, paying for subscriptions, and even buying items.
In this guide, we’re looking at some of the pros and cons of cryptocurrency when it comes to different use cases. This should help people to understand whether they should be using crypto or sticking with their traditional methods of paying.
Using Cryptocurrency For Gambling
This has been one of the real growth areas in the world of cryptocurrencies. Visiting a crypto gambling site with poker and slot games is just as straightforward as visiting a casino that takes traditional currencies. Studies estimate that around 47% of casinos now operate using some form of cryptocurrency or “altcoin” and there are some clear reasons why cryptocurrency is becoming a mainstream payment method in the gambling industry.
So, given the choice, what should people use for their cryptocurrency gambling?
One of the key reasons people choose to use cryptocurrencies is the anonymity and security that it provides. This means that gamblers who don’t want to give up their identity while they play can still gamble.
Some people are concerned about security breaches on sites or their data being compromised, and crypto can help to avoid this problem due to its decentralized nature. No bank or middle-man is required and this reduces the chances of a data breach.
Cryptocurrency can also be a way to avoid fees, as many of the providers won’t charge for moving money around. Casinos using traditional currencies may be subject to deposit and withdrawal fees and limits.
For some players, cryptocurrency is also a way around location restrictions. They do not need to provide an address or risk being blocked because of where they are playing while they travel.
The perceived downsides include the fact that the currency itself can be volatile, some of these cryptocurrencies can fluctuate in value during play, which means the value of winnings can go up, but can also go down. The consumer only really knows when they visit a crypto exchange to trade their money.
Using Cryptocurrency For Traveling
One of the goals of cryptocurrency is to provide a currency that doesn’t rely on exchange rates. Using a cryptocurrency means the value is the same in each country you visit, making it a good option for traveling.
The prevalence of cryptocurrency is growing. To date, there have been over 1.6 billion blockchain transactions, and this number gets bigger by the day. However, some countries have adopted cryptocurrencies more quickly than others. The U.S. is among the countries with mainstream crypto options, along with many European and Asian countries.
So, while cryptocurrency is good for buying flights, or for paying for goods and services globally, it is also possible that you won’t be able to fully rely on crypto while you are on the go. Not all countries will have a lot of options to pay using Bitcoin or other cryptocurrencies.
It looks like there will be a day when the choices aren’t restricted if you don’t use mainstream currencies. In many countries it is possible to pay for most of the items you need, plus hotels and transport. But for now, there are some limitations, some countries such as China have even made it illegal to use Bitcoin, so you’ll need a backup option.
Investing in Cryptocurrency
One of the most popular use cases of cryptocurrency has been investment. A lot of people have heard the stories of people who adopted crypto early, bought Bitcoin at a much lower rate, and have reaped the benefits.
Crypto had its first big price jump in 2010 when one Bitcoin was worth $0.09. As of today, its highest value on record is $68,789.63. You can see what an incredible difference this is. People who invested early reaped the rewards.
But with high reward often comes high risk. Cryptocurrencies are volatile investments at the moment and can go down as well as going up. This is the main downside to investment in cryptocurrency. This doesn’t mean investing in cryptocurrency isn’t a good idea, but a lot of people choose to mitigate their risk with relatively low investments in crypto markets. Plus, anyone investing should do their research first.
As time goes on, it seems inevitable that the use of cryptocurrency will get more common, and that there will be even more use cases. You can already buy Starbucks or pay for a Time Magazine subscription using cryptocurrencies, and we expect more companies to follow suit. There are always pros and cons to using the currency but this guide should help you to decide whether crypto is right for you.