Posted at 30 Jan 12:00hin Bitsabysystem admin
We are immersed in a fast-paced environment. What a few years would have sounded like a futuristic feature, these days are the most common thing to us. A crypto card belongs to that group of tools.
The truth is that just a few years ago, paying for your groceries with crypto would sound like a great idea. But, also an unreachable idea. Bitcoin early adopters had dreamed about the day when they can use crypto on a daily basis. Now, we almost forget that we have come a long way.
In that context, being able to pay with cryptocurrencies without having to find another “Cypherpunk” who accept them as a mean of payment, is good enough. However, reality tells us that the benefits of using a crypto card don’t end there.
What is a Crypto Card?
A Crypto Card, which can be also called a Bitcoin card, because of its first-ever cryptocurrency popularity, are a prepaid or debit card that allows users to pay for goods and services using cryptocurrencies. These cards are similar to traditional debit or credit cards, but they can be charged with cryptocurrencies such as BTC, ETH or even with stablecoins.
One fact, that makes these crypto cards widely attractive for users, is that they are issued by companies like MasterCard and Visa. While, some decentralization defenders or real “bitcoins” may be a bit disappointed after reading that fact, that these cards are issued by these companies is an impressive advantage. Try to think of every business or store that has on its door the MasterCard or Visa logo. Well, all of them are instantly accepting your payment with Crypto Cards.
This possibility, to make payments all across the world directly with your cryptos, definitely takes the crypto ecosystem to the next level. Now, let’s focus on how they work and what’s behind them.
How do Crypto Cards Work?
The biggest opposition that Crypto Card had, before being invented and put into circulation, was the following statement:
- But, how can someone force all merchants to accept cryptocurrencies as a means of payment?
We have to say that, they were extremely right. However, we may love cryptocurrencies and how much we may want to defend them, today conditions are not set for merchants to accept them directly as a means of payment.
From one point of view, one of the strengths that we tend to remark on is that cryptocurrencies are not regulated by national governments. This feature gives their users great freedom and protection against inflation. But, lack of regulations also leaves them in a grey area that makes them unfeasible to, for example, declare or pay taxes.
Therefore, the functioning behind these cards is as follows:
- Users send their crypto to an address which is provided by the Crypto Card App
- Then, automatically, the Crypto Card App changes those cryptos for Euros
- After that, the Euros are ready to be spent
This way of functioning, protect both, users and merchants, from the well-known volatility of cryptocurrencies.
What kind of Crypto Cards exist?
There are two types of Crypto Cards: pre-paid cards and debit cards. Pre-paid cards require users to select the amount of cryptocurrency or fiat currency they want to charge on their card, while debit cards are linked to a crypto wallet and automatically exchange cryptocurrencies for local currency when the card is used.
For example, with a pre-paid crypto card like Bitsa, users can select the amount of crypto or fiat currency they want to charge on their card. The crypto card provider will then give the user the necessary information to make a blockchain transaction. Once the transfer is complete, the user will receive the local currency and can use the card to pay for goods and services or withdraw cash from an ATM.
On the other hand, with a crypto debit card, users must first fund their crypto wallet with cryptocurrencies. When they pay or withdraw money using the card, the crypto card app automatically exchanges the cryptocurrencies for the local fiat currency.
Differences Between Crypto Cards and Traditional Debit or Credit Cards
It’s possible to affirm, that one key difference between crypto cards and traditional debit or credit cards is that crypto cards can be charged with cryptocurrencies, allowing users to easily spend their digital assets. In the past, it was difficult to find a simple and quick way to spend on cryptocurrencies. But, with the advent of crypto cards, this has become much easier.
Anyway, beyond the obvious difference that refers to the ability of Crypto Cards to be loaded by means of cryptocurrencies, it is necessary to emphasize the benefits that this new type of card usually offers.
The benefits of using a Crypto Card
Crypto Cards provide their users with some benefits that make them attractive, even to those users that aren’t crypto natives. Let’s see some of the advantages that we are talking about:
- Convenience: A Crypto Card, is the best way that users find to easily spend their cryptocurrency. Also, with a crypto card, they can spend their crypto without the need to look for merchants that accept cryptocurrency as a means of payment.
- Increased crypto-power: Equipped with a crypto card, users can spend their cryptocurrency on every store, whether online or physical, that accepts MasterCard or Visa. No one can ever again say that cryptocurrencies are useless on a day-to-day basis.
- Volatility is eradicated: As we said before, some crypto cards convert cryptocurrency to fiat currency in real time. This, great future, allows users to spend their crypto without having to worry about price fluctuations.
- Cashback and rewards: It’s extremely common that crypto cards offer cashback or rewards programs. Thanks to them, users can save money or earn additional cryptocurrency will they use their holdings.
- Extra-security: To safeguard users’ funds, crypto card providers frequently employ cutting-edge security measures like multifactor authentication and chip-and-pin technology.
Definitely, the benefits of this type of card are even more than what we have briefly mentioned in this list. With the development and popularization of such solutions, the crypto world will inevitably grow. Then, it will reach places it has not yet reached.
Last words
The cumulative accomplishments are stunning and astounding when we consider the journey we have travelled up to this point. Nevertheless, despite being surrounded by a culture that values innovation and ongoing development, we never stop wanting more.
Beyond the significant advancement of paying with Crypto Cards for regular purchases, we are looking for the next step. Obviously, it will be to pay with cryptocurrencies directly instead of first converting them to fiat currency.
However, a lot of things need to change in order for us to be able to witness this feature arriving. Vendors today still require FIAT money in order to report their income and make tax payments.
Blockchain technology has the potential to revolutionize the financial world. DeFi has taken the first steps in this direction. Now, crypto cards have brought the practicality of the ecosystem to the world of payments. The revolution is only a matter of time.
