Being a fairly new and less used currency, it can be a thing of dilemma for people to decide if they want to use cryptocurrency to buy various goods and services. This confusion can be sorted by looking at the various pros and cons of using cryptocurrency to buy goods. This can vary in accordance with different types of goods and services that one can buy and also with respect to the websites or the gateway one uses for the payment. Hence, to fully understand the consequences of buying with crypto and whether one should try it, it becomes important to look at the potential benefits and harms of doing it.
1. One can become susceptible to being scammed
In current times when everything has turned online, it has become important to know that one’s data is never completely safe. This becomes more risky in situations where money is involved. As per the report of the nydus.org, online data is very susceptible to being illegitimately collected and misused by hackers and scammers. This can then lead to identity theft and other such issues.
Using crypto to buy goods can become risky in case the payment is being made via a gateway on the internet. Hence, to ensure that such issues do no arise and protect oneself from scammers, it becomes important to ensure that the website or gateway that one is using for making any such online payment is trustable and safe.
2. Price fluctuations
People using various cryptocurrencies including cryptocurrencies like Bitcoin do not generally prefer to use such currencies for buying things. This is because the value of Bitcoin and other cryptocurrencies in relation to the fiat currency keeps on changing very frequently. For example, if one had paid cryptocurrency worth $5 on Day 1, the value of it can change to $45 in a couple of days. This is a huge loss for the person who had used cryptocurrency to pay for the same.
Hence, to ensure that such a thing does not happen one can try to look for cryptocurrencies whose value does not fluctuate as often and as much. They can then use such cryptocurrency to make payments without having to worry about incurring a huge loss. But even then, the crypto market remains very flexible and fluctuates often.
1. Stablecoins can be a good substitute to money
Stablecoins refer to those cryptocurrencies which are stable in nature unlike Bitcoins. These coins have constant values that do not fluctuate as much as Bitcoins and other popular cryptocurrencies in the crypto market. Some of the most popular stablecoins are USD Coins and Tether. The value of these coins is tied to actual fiat currencies and thus do not fluctuate aggressively.
2. Different coins suited for different kinds of purchases
These are different types of cryptocurrencies which are suited for different types of goods depending on their properties. Some of the most popular cryptocurrency coins which can be used for day to day transactions include XRP, Manero, and Dash. Having a good knowledge regarding the purpose of these cryptocurrencies can help in determining which cryptocurrencies one needs to get and use to be able to spend on their chosen good or service.
3. Cryptocurrencies allow for lesser fees
Unlike using payment methods which include cash, there are many different types of coins that act like money, have stable value but do not attract as high transaction fee as fiat currency. When trading in fiat currency and using it to buy goods, one can attract a lot of tax and also transaction and processing fees.
This cost is cut down in cases where one uses cryptocurrency coins. Many cryptocurrencies do not attract such fees or attract very nominal fee in comparison to transacting via fiat currency.
4. Exchanging Cryptocurrency is faster
Sometimes using and trading in fiat currency for shopping or spending can become a long and tiring process as it oftentime includes a lot of middlemen like payment gateways, digital wallets, banks, etc. This can sometimes lead to failure in payment and might even cause a delay in a payment. Exchanging cryptocurrency is comparatively faster as the currency and coins in such a case goes directly from the buyer to the seller or the account affiliated with the seller. Hence, if one is looking for faster and uninterrupted transaction of money while shopping for a good or service, one can opt for cryptocurrencies.
Cryptocurrency is a relatively new and underutilised money. There are several advantages and disadvantages to using it to purchase various goods and services. Because one’s data is never totally safe online, one can become vulnerable to identity theft and other such difficulties. Using cryptocurrency to purchase products can be problematic if the payment is conducted through an internet gateway. There are many different types of currencies that function as money and have a steady value but do not have the hefty transaction costs that normal fiat currency has. Exchanging cryptocurrencies is speedier since the currency and coins are transferred immediately from the buyer to the seller or an account associated with the seller.
At the end of the day using or not using cryptocurrency to buy various goods and services depends from person to person. As cryptocurrency is still a new format to many businesses, it can be difficult to rely solely on crypto coins to buy everything but there are still many businesses which do accept crypto currency and can be a great headstart for anyone willing to trade in cryptocoins.
Hence, before taking a hard stance on whether or not to use cryptocurrencies for buying of goods and services, it becomes important to try it beforehand. With changing times too, cryptocurrencies might play a much more significant role in various kinds of trades and businesses in different sectors. This can also change one’s opinion with regards to using cryptocurrency for buying and selling of goods. There are also chances of cryptocurrencies evolving to become more accommodating of such transactions.