It's been a while since cryptocurrencies entered our lives, changing not one or two but several fields and industries. Although people were skeptical in the beginning, later most of them saw some benefits that only a decentralized technology could bring, ensuring another level of security and transparency.
However, the same decentralized nature of this technology is both an advantage and disadvantage given the fact that less control over financial transactions is not always good but can also raise concerns among users. This brings us to the point where on some occasions cryptocurrencies are super beneficial, whereas some activities would benefit from using just a traditional payment method.
In this article, we will analyze some aspects of digital currencies, explaining the necessity of using them based on your online activities. We will cover the most popular scenarios people go through where certain types of financial transactions may be required, starting from online gaming to shopping and investment possibilities.
The world of gaming has achieved another level of popularity after adopting cryptocurrencies, which brought convenience to people around the world, wherever crypto is accepted. The first major advantage is the possibility to send and receive instant transfers, which are more secure than in the case of traditional payments. Subsequently, online gaming and gambling companies started introducing special offers purely based on crypto transactions.
Betting is another major aspect that has millions of people who are active fans of sports and esports. We will talk about this briefly, but if you are interested in getting more detailed information about the topic, feel free to check out this list of pros and cons of crypto betting.
The global betting market has an enormous growth. In 2022, it accounted for $83.65 billion, and this number is expected to grow in the upcoming years. There are several studies, but most of them suggest that more than 30% of American sports betters place at least 1 wage every week. With this kind of activity level, the betting market is a huge place for financial transactions, in which one of the key factors is the ability to allow instant transfers. Bitcoin and other cryptocurrencies are the fastest way to cash out the money betters win, without additional costs. On top of this, the exceptional security level ensured by blockchain technology makes digital currencies the desired way of payment for gaming and sports fans around the world.
Let’s take a break here: Buyers and sellers are different people, with different needs and priorities, which means the usage of crypto payments varies based on that. First, about buyers. Generally speaking, crypto is as good for making purchases as it is for gaming, betting, etc. for a simple reason: It always ensures the same security measures and the ability to avoid third parties.
With this being said, if you are a buyer who uses crypto and wants to purchase from an online store that accepts payments other than traditional ones, then no worries, crypto can be beneficial, especially if you are abroad where you may encounter different currencies (USD, EUR, Lira, etc.).
It’s a different story with sellers. Businesses, especially small ones and start-ups are quite fragile and may shake from even small changes. The positive effect of accepting crypto as a payment method comes with the safety layers, and the flexibility to bypass the third parties and additional costs that situation may arise. Along with many benefits, the U.S. Chamber of Commerce highlights the fact that cryptocurrencies are still considered extremely risky. All the conversations about crypto being able to resist inflation are true, but some angles make it risky for businesses, and one of them, as the aforementioned organization underlines, is that one of the cryptocurrencies, Bitcoin, has a high level of unpredictability.
Investments are not for everyone. Before coming to the dilemma between crypto and traditional money in investment, one needs to have a comprehensive knowledge of investment possibilities and risks in general. Do you have that knowledge? Then let’s move on.
Investing in crypto can be a highly beneficial move, but always consider the risks as well. Studies and field professionals usually separate the several risks, including the loss of capital, government regulations (or the lack of government regulations), fraud, and hacks. Keep in mind that many hackers work 24 hours a day to break into people’s accounts and steal financial and personal information. If physical threats can be quite manageable by authorities, digital threats are less controllable.
Although cryptocurrencies are not the best option for investment, given the fact that this field offers lots of opportunities, always consider talking to a professional. Investment options differ from country to country and from continent to continent. What is right for Americans living in the U.S. can be wrong for Europeans living in European countries. So, talk to a local investment advisor and make your decision after a thorough analysis.
