Crypto as a base of wealth and how to pay for daily purchases with Bitcoin, Ethereum etc.
I would like to elaborate a bit more about Bitcoin and cryptocurrencies, how I feel about this issue and what impact it may take on our daily life.
Let’s take one step back and ask yourself: what money means to you? In terms of wealth as such. Usually, when we invest our money to make a profit, most likely we think “dollars”, “euros” etc. The money as a main denominator of what we see and use in our daily life. Well, not for everything but in most cases anyway. So, for me personally, the basis of my current understanding of wealth is euro. It is perfectly normal since I live in Latvia, the member state of EU. And I believe that for each of us this “base” means something different, which is completely normal and understandable.
For example, a forest owner most likely considers his forest (in hectares or acres) as his “base” of wealth, as well as farmer who owns a particular amount of hectares or acres of agricultural land. For real estate developer the base might be square meters and so on. And I believe that for some, the BTC has become their “base” of wealth.
I am rather convinced that there will be more and more people who will eventually hold on to BTC or other cryptocurrency which would become their main “base” of wealth. I am quite certain that ETH (Ethereum) is the base for Vitalik Buterin, the creator of Ethereum cryptocurrency, the second most popular crypto after Bitcoin. Imagine, how cool is that having certain crypto as a base, you no longer need to convert it to “flat money”!
Many may argue that cryptocurrencies are not integrated that much in our daily life yet. However, when you see that PayPal already has integrated BTC, accepting payments with it, and how many retailers actually use PayPal, it’s not hard to imagine emerging trend. On top of that, VISA is considering adding cryptocurrencies to its payment network as well. So, this is not a drill, this is getting serious now.
In fact, VISA card already can be used for payment with cryptocurrencies, only through intermediary companies, though. For example, one of the largest crypto exchanges Binance, in cooperation with Contis Financial Solutions Ltd already provides the opportunity to pay with cryptocurrencies on a daily basis.
How does it work? All you have to do is register your account at Binance. You can use my link or Referral ID (15223813)
Then, as with any broker, you will have to fill in mandatory registration data and upload a proof of address: bank account printout, showing your address or utility bill with your name and address to be seen, and valid ID document. Once you have successfully registered, go to the wallet – a card section, where you can apply for your new VISA card. Then you can add your new VISA card to your Google Pay or Apple Pay account and you are all set, without need for a plastic card to be crammed in your wallet. As soon as your new VISA card is linked with your Google Pay account, you can use it anywhere where VISA is accepted. And the most charming thing about this is that the Binance VISA card can be supplemented with the following currencies – BNB, BUSD, BTC, SXP, ETH and EUR!
So, how can you add some BTC to your VISA account?
Again, go to your Wallet – select Card – then Transfer. Then add funds to your Binance spot account with BTC or another cryptocurrency. Please note that it is NOT necessary to change the selected cryptocurrency currency to FIAT (euro)! The conversion will take place automatically upon purchase. For example, if you have BTC worth EUR 1000 eur in your account and you make a coffee purchase worth 2 euros, the BTC will then be automatically converted to EUR 2. The rest of the BTC value will not be affected. That way you can pay for your daily purchases with BTC. Simple and easy! Besides, it is very convenient solution if you have chosen to keep some of your money in BTC.
Think of the future development scenario when people use this type of opportunity more and more on a daily basis. Many intermediary companies may become obsolete since you can send or receive your BTC payment directly and see the outcome instantly. Well, that’s why BTC was created in the first place. Not to mention that integrating BTC billing into your website is more than simple. As oppose to current “classic” payment methods.
For example, if you want to make a BTC payment, you only need to specify the QR code or BTC address (17csyAnWvroqcuG4cNdx6hRH854f2sajYe).
Everyone likes simple and effective solution and this one certainly is. Once you try it and form a habit of using it there’s no coming back. So, for now people need to get used to idea that BTC or cryptocurrencies are here to stay, it’s inevitable. Then the whole process will escalate rather quickly until this new habit kicks in. We just need to close the gap between scary unknown to more convenient way to deal with transactions.
I see that this process has already began. Many companies already accept BTC. This is not the latest info but still can give you the glimpse of this trend: Microsoft, AT&T, Etsy, Shopify, BMW etc. I am proud that the Latvian national airline AirBaltic accepts BTC (through Bitpay service).
So, I do believe that this process of cryptocurrencies integration in our daily lives is irreversible. And I believe that it will not be a Revolution (as many may think), but rather an Evolution. Crypto gradually will evolve and play a bigger and bigger role in our daily lives. Over time, various communities will form that will use exclusively only cryptocurrencies. I may sound a bit futuristic, but I strongly believe that sooner rather than later there will be more and more users who would consider crypto or BTC ad their “base currency”.
Besides perception of the new “base”, cryptos may become a new type of savings. Imagine, many tend to accumulate a portion of their assets in gold. But what is gold? A metal that has historically been a form of payment (money). A metal that is accepted almost all over the world. An asset that is not very attractive to investors of younger generation – those who are born with all sorts of digital stuff and its possibilities. No doubt, valuable asset is shares (securities). Many millionaires, billionaires keep their money in the shares of their own companies. People also invest in wines, whiskeys, antiques, cars, jewelry, artwork, stamps, books, and more. People tend to collect a variety of things, allocating them certain value. And all of a sudden you realize that "software is eating the world", and almost anything can be digitized now. Now, with crypto, the process of digitization (rather tokenization) is taking on new proportions.
So, now it is possible to tokenize practically anything. And you can give, sell or manage this token to anyone directly, without intermediaries. You can exchange this token for another token or money. Today’s younger generation easily accept the new digital values. They are easy to understand, use and accept. And then you start to realize how easy it will be to accumulate your assets, your wealth in cryptocurrencies, tokens, and other digital assets. These, easy to use and always within reach assets you then can sell or give back – effortlessly, with a few clicks. That’s how easy the asset can change its ownership. It is both at the same time – awesome and scary, imagining the speed of these transactions without intermediaries.
Last but not least: I don't see the point in converting my BTC and ETH to Euros.
I have chosen to keep part of my money in cryptocurrency. And if I need to, I can make purchases with BTC with the help of Binance VISA card. It's convenient and fast. Commissions for Binance are great and there are no hidden costs. All costs are included in the cryptocurrency exchange rate. So far I can say that Binance is one of the best on the market. And, since any transaction of crypto or tokens mostly is about trust, I’m rather convinced that they will do anything to keep it that way.