Everything You Need To Know About Cryptocurrency Debit Cards
Many consumers have often raised an important question in various forums and blog comments about cryptocurrencies. This has revolved around the usage of cryptocurrencies in everyday life. For example, what do you do if you want to use Bitcoins to buy grocery from your local store? Alternatively, if you want to use your Bitcoins to buy movie tickets?
While the price of a movie ticket or a coke bottle will not change if paid in terms of currency, for Bitcoin the prices might vary. This is because cryptocurrencies like Bitcoins are still a highly volatile asset, prone to frequent changes.
Blockchain technology, and Bitcoin first of all, are used on a daily basis by banks and financial institutions all around the world. Many exchanges are also offering free accounts where you can safely store your cryptocurrency or even spend it with cards in shops or online. In this article by Cryptimi you can find the list of the best cryptocurrency exchanges.
In this article, we will look at one of the leading fintech solutions aimed at easing the use of Bitcoins- Cryptocurrency Debit Cards. However, before we discuss the specifics, let us first look at what kind of problems can a crypto debit card solve.
Cryptocurrency Debit Card: Meaning and Definition
If you are using cryptocurrencies like Bitcoin, you can use a crypto debit card to store or recharge the same and use it as a standard debit card. When you are making the transaction, your vendor just converts the crypto in your account to normal currency.
A crypto debit card can work in either of the two ways. You can either use a prepaid debit card, like, recharging the debit card with a specified Bitcoin amount. This can then be used whenever any transaction is made. Once you exhaust the account, you can again recharge the same.
Secondly, a newer development is the automated exchange system being offered by many financial and banking institutions. You can use the bank's app to transfer assets to your card directly. This is far more convenient than the first option, and slowly gaining in popularity.
Following, which the bank directly converts the crypto into the standard currency value of the day. In most instances, the vendor is not even aware of whether you are converting crypto on the spot to normal currency or not.
Why are Crypto Debit Cards not very popular?
One major reason pointed out by fintech experts around low adoption of crypto debit cards pertains to the long confirmation period. The average time required for confirmation ranges from seven to ten minutes. This is quite long for transactions to be done. Imagine a busy shopkeeper having to wait for ten minutes for one transaction to go through.
However, newer tech advancements are being done in the field and the move towards adopting the now developed 'lightning network' is also taking roots. The fees, which are being taken by financial institutions to process the same is quite high. This is higher than the standard fees taken from consumers on normal digital swipe transactions.
In short, the time required for confirmation of the transaction, and the high fees are two obstacles preventing mainstream adoption.
What can I do if I want to spend Cryptocurrency is a Consumer market?
Consumers have one of two options if they are looking to use Bitcoins or other crypto. They can either opt for Point Of Sale machines (PoS) that shop owners possess. Alternatively, they can take help from debit and credit cards. While many shop owners have started stocking PoS machines, their numbers are limited in nature.
The trend towards adopting plastic cards like debit and credit cards is far simpler and easier. This is why a majority of major banks and financial institutions have started working on debit cards to help consumers when it comes to Bitcoin transactions.
As Bitcoin becomes more and more popular and more people start using it, we will see a further rise in the adoption of credit and debit cards. There are many companies, which offer regional or within boundaries payments. Others also offer a truly global perspective. For more information on how to use a Bitcoin debit card, or investing in crypto please visit https://cryptoengine.app
There is no doubt that it is important to ease the process of digital currencies. This will not only help their spread and reach, but also allow for more mainstream adoption and lobbying. In the near future, you will be able to buy a cappuccino easily with your crypto debit card!