Right now, the challenge of spending with
cryptocurrency is that most currencies are
volatile. Indeed, Bitcoin’s volatility reached
a 14-month high back in June and hovers
at around $66,000 after weeks of ups and
downs which would, naturally, make it difficult
to buy anything of value. For instance, buying a
car could one week cost you $40,000 in Bitcoin,
and the next week $60,000. Add in exchange
fees and associated costs and naturally,
few banks are yet comfortable supporting
the currency. Of course, if you’re holding
cryptocurrency, you’ll need to accept that you
could lose money as well as gain it. Like any
investment, there’s an element of risk, perhaps
more so in an up-and-coming product that’s yet
to be properly tested. Indeed, that’s why few
banks have yet to officially support crypto: they
rely on the stable value of the currency to lend,
borrow or earn interest, and when that’s not
possible, it becomes much harder to monetize.
Something else that’s worth considering
before investing in crypto or opening a crypto
wallet is that regulators are still evaluating
cryptocurrency fintech companies, and the
chances are that both in the United States
and around the world, there’ll be volatility as
bills are passed and players come and leave
the marketplace. That’s without mentioning
the tax implications of investing in crypto and
generating returns on your money. It’s always
worth speaking to a financial planner or adviser
to ensure you’re comfortable with investing your
money in crypto.
Once you’re sure that crypto is right for
you, consider one of the top apps like Cash
App or Coinbase for purchasing and selling