These days technology advancement is overwhelming. Virtually everything that we do is technology-based, so why wouldn’t the world’s most largely traded item be included in this advancement?
Every single day the US prints approximately 38 million notes, equalling up to about $541 million. Each US dollar is made 25% linen and 75% cotton and is laced with red and blue synthetic fibers for authenticity purposes. While these notes are printed using huge machines, production costs are still high. The 2018 budget for currency printing is $861.7 million, and we all know where that money comes from: our hard-earned tax dollars.
If we could find a way to eliminate paper money we would save that $861 million and be able to properly fund our schools, homeless shelters, or perhaps even lower our income taxes.
The good news? Cryptocurrencies are well on their way to demolishing the US paper dollar and possibly becoming the sole currency of the United States.
You may already be one of the lucky holders of this crypto-cash, but unless you understand how cryptocurrencies work, your money is probably silently sitting in your crypto address.
Let’s dive in and learn how you can get started spending your crypto-wallet.
The Brief: How Cryptocurrencies Work
Did you know that banks make nearly $171 billion yearly off of the American public? Sure, your ATM fee might only be $2.50, and the overdraft fee might be around $20, but that money really adds up when thousands of people start accumulating fees.
Since you’re not dealing with physical money here, cryptocurrencies eliminate the need for banks.
To put it simply, cryptocurrency transfers work similar to bank transfers. The currency that is sitting in your account stays there, with no monthly fees, until you decide to buy something. When you decide to make a purchase, you essentially just make a transfer from your account to the seller’s account.
It’s the same idea as handing over a 20 dollar bill, except with cryptocurrency you’ll be doing it electronically.
It’s really that simple.
How to Put Your Crypto-Cash to Use
Now that we know how cryptocurrencies work, the tricky part is finding a business that accepts them. More and more businesses are quickly becoming crypto friendly, like Starbucks, Uber, and many hotels are working towards accepting crypto-cash.
Until those companies create their own crypto wallets, you’ll have to stick with the already active ones. Here are a few:
There are many other companies that accept crypto as a form of payment, you just have to keep an eye out. Keep in mind that it’s important to have strong money management skills, even with crypto-cash. Check out the best financial planning apps out there to help you manage your finances.
Our Best Advice
Don’t get too excited, now. While cryptocurrencies are quickly rising in popularity, it’s definitely going to take several years, and possibly several decades before it can even begin to replace the US dollar.
That being said, now that you know how cryptocurrencies work, it may be tempting to go on an online shopping spree with your crypto-wallet, but we urge you to consider holding onto your currency and letting your investment grow.
However you choose to spend your crypto-cash, we wish for your crypto-wallets to be full and your shopping sprees to last.