Despite the rising popularity of cryptocurrencies, they are still far from the mainstream acceptance of say the stock market. And one of the reasons why it has yet to achieve this mainstream status is the lack of proper education among older investors. For the most part, these institutional investors struggle with how the crypto market works ad feel overwhelmed. Therefore, if they don’t have confidence in the market itself, it is hard to convince them to use it as a form of payment.
However, the people that have been trading crypto and understand how the market works do not need convincing to use crypto. In fact, Jagruti Solanki, the CFO of BitPay, believes that customers who are using crypto as a payment method will not stop anytime soon. The incentives that each cryptocurrency offers are too good to ignore, evolving modern alternative payment options.
Solanki also talked to PYMNTS about a recent survey that records the reasons why people are spending their crypto now. The survey had over 8,000 participants, all of who were US consumers who invested in cryptocurrencies.
BitPay’s CFO said that people bought most of their crypto tokens when they were very cheap. Most of these investors were holding rather than selling. And now that these tokens have become more lucrative, investors are thinking of spending their money now. She also mentioned that since prices have risen so exponentially, they might as well be getting things for free when using crypto.
The number of people who have been holding onto their investments has risen exponentially. Therefore, a lot of these investors are looking forward to spending their profits. But that is not the only reason why someone would want to spend cryptocurrency.
While some investors don’t mind making risky investments, others would prefer to invest in “stable coins.” These cryptocurrencies don’t fluctuate as much and are usually there for people to make profits in the long run. Furthermore, stable coins also have their equivalent amount in US Dollars, which keeps them relatively stable.
So even though they do not offer the same benefit as a cryptocurrency like Bitcoin, it still has its unique benefits. People will usually spend stable coins because they are more convenient in certain situations, like sending money abroad or making online purchases. These stable coins also offer more privacy and security than paying through say your bank.
The best part about buying things with crypto is that investors do not have to pay high transaction fees from banks. They can also transfer their funds from one wallet to the other whenever they want without having to worry about bank timings.