The world is becoming more digital in every aspect and currency is no exception. The first South African Bitcoin ATM was recently launched in Johannesburg, inside the Northwold Spar. Although there is still much skepticism around cryptocurrency, this ATM proves that cryptocurrency is a reality.
Cryptocurrency can be defined as a digital or virtual currency that uses cryptography (AKA encryption) for security. It is transferred between peers and confirmed in a public ledger through a process called mining. Cryptocurrency is difficult to counterfeit because of this security feature. Cryprocurrency is not issued by any central authority and this makes it theoretically immune to government and central bank interference or manipulation. Blockchain technology eliminates the risk of fraud. It also eradicates the need for a ‘middle man’.
The most popular cryptocurrency is Bitcoin but there are more cryptocurrencies circulating. Most people know about Bitcoin and cryptocurrency but they do not understand what it is and what it is used for. Since cryptocurrency is becoming more common, it is relevant to know more about it and the use that it will have in everyone’s life.
Retail
There are retailers, both brick-and-mortar and online stores, that have begun accepting cryptocurrency as a form of payment. This also includes making transactions to book hotel rooms and for coffee, yes coffee, from coffee shops. Overstock.com, a major online retailer, enables consumers to purchase their products (furniture, televisions, kids toys and much more) with all major cryptocurrencies such as Bitcoin Cash, Ethereum, Monero, Litecoin and Dash.
Microsoft allows you to credit your Microsoft account with Bitcoin. This allows you to purchase games, movies and apps from Windows and Xbox stores. Many Shopify, an e-commerce platform, stores accept Bitcoin as payment. Merchants have the option to receive their payments in the form of Bitcoin. Of course Easydoesit also accepts Bitcoin as payment through PayFast. Unfortunately, this is only applicable to the local products available in South Africa.
Paying Taxes
In the United States, more specifically the State of Arizona, a bill is being created to allow citizens to pay their income tax in any recognizable cryptocurrency. Once this is passed and is a success, we may see many more states and countries around the world follow suit.
Russia has also proposed a multinational cryptocurrency for all the BRICS (Brazil, Russia, India, China and South Africa) and EEU (Belarus, Kazakhstan, Kyrgyzstan) nations to use when trading with one another. We may just be using this cryptocurrency to pay our taxes one day.
Salaries and wages
There are already jobs available that allow employers to pay their workers in cryptocurrency. There are existing companies that give their employees the option to get paid in Bitcoin. A large, publicly traded web hosting company in Japan called GMO Internet Inc. allows its employees to take this option. There are also many online jobs you can take that pay people in Bitcoin or other cryptocurrency.
When you receive cryptocurrency as payment you can store it in online or offline cryptocurrency wallets such as Wirex, CoinPayments, Exodus, Jaxx, Ledger and wide range of others. Cryptocurrency wallets are used to store, receive and send cryptocurrency, either to someone else or when making a purchasing, using your wallet address.
Gambling
People use cryptocurrency to gamble online or at casinos with. The gambling industry has seen a surge of gambling utilizing cryptocurrency. An example is RAcoin, a decentralized and self-regulating system which is a token that is created for gaming worldwide and can be used for online and offline gambling. It uses blockchain technology to execute betting contracts. This makes gambling safer, especially online where scams are common. Blockchain technology helps you relax while you gamble.
Making Purchases
There are dozens of stories of people who became Bitcoin millionaires and have purchased Lamborghini’s and other flashy items to prove their success. Many South Africans, who may not have the millions just yet, are opting to buy or sell cars and houses for cryptocurrency online. This is done specifically through second hand market places such as Gumtree and OLX.
ICO
According to Investepedia, ICO (Initial Coin Offering) is “an unregulated means by which funds are raised for a new cryptocurrency venture”. An ICO is similar to an IPO as investors purchase shares of a company. If you are interested in investing in startup companies, you should consider ICO’s.
In the future, possibly sooner than imaginable, we will all be using digital currency to make transactions and fiat currency will be completely left in the past