With the development in the cryptocurrency market, some businesses have started accepting payments in cryptocurrency. You might have bought your cryptocurrency, invested, and got a digital wallet, allowing you to use crypto in some aspects of your life.
That may have led to thinking about shifting from fiat currency to cryptocurrency. An all-crypto future seems inevitable and well-accepted, especially among the younger generation.
According to one gen-Z crypto influencer, they have grown up communicating electronically via emails, texts, facetime, and different social media platforms. She says that it is also not impossible to transact using digital currency.
Other people supporting the transition cite inflation with the fiat currency, saying that the US dollar is losing to services and goods. Cryptocurrency’s value, on the other hand, like Bitcoin, keeps increasing.
It seems like the all-crypto future is bright, but there are things people need to know before deciding whether it’s a good choice.
Factors to Consider
The most important thing to consider is which cryptocurrency you want to use. Bitcoin is the most valuable and popular one, but it is a volatile asset whose value could change overnight, just like the rest.
While most cryptocurrencies tend to move in the same direction, some move independently, especially those associated with decentralized finance and apps. Experts advise using different coins.
After determining what crypto you want to use, you need to decide whether you will use crypto credit cards, prepaid cryptocurrency debit cards, or cryptocurrency rewards cards. Consider the advantages and disadvantages of each, the costs, and the tax implications.
Factors like financial obligations, age, and circumstances will also determine whether the hassle is worth it. Younger people still living with their parents without many financial commitments might benefit more from learning about the new payment methods.
That is unlike older people with significant financial obligations like car loans, mortgages, and student loans. Experts say that an all-crypto lifestyle is easier if you start from scratch instead of transitioning your bills over time.
They also say that it’s hard to make your lifestyle 100% crypto-dependent. While some businesses accept crypto payments, some only take fiat currencies. Therefore, you still have to have cash, a credit, or a debit card.
In some businesses that accept credit and debit cards, you can use your cryptocurrency rewards card, although the charge might be higher than those in traditional credit and debit cards.
According to one person who has transitioned to using Bitcoin, they pay with it in all places that take Bitcoin. However, he uses his credit card and pays off the credit card debt using Bitcoin for businesses that don’t.
Should You Change Your Savings Into Crypto?
Even with its volatility, cryptocurrency has experienced an increase in prices over the long term, which leads experts to believe that it’s okay to keep savings in crypto.
In the past, people transitioning to a cryptocurrency lifestyle would leave their savings in fiat currency just in case. However, according to another Bitcoin user, inflation has made it better to save in cryptocurrency.
He says that the long-term gains projected in Bitcoin are significantly higher than those in a savings account.
Before saving in Bitcoin, experts advise that you reduce or pay off all your debts. Cryptocurrency is a risky industry that is hard to predict the returns, but your debts accrue interest, which could end up costing you more.
When buying whatever cryptocurrency you want to use, ensure you research and learn how to buy correctly. You can also learn more about other cryptocurrencies to ensure you make the best choice.
https://www.okx.com/go/how-to-buy-polkadot is one of the online platforms where you can learn more and make more informed decisions.