Cryptocurrencies have been acquiring appreciable space in the mainstream world of finance over the last few years. However, their primary hurdle continues to be around global acceptance. As a result, using your cryptocurrencies for your daily transactions can be challenging as most retailers refrain from accepting cryptos as viable payments.
Why? Well, their volatile nature. Nonetheless, if you’ve been an early investor and seek to make the most of your crypto earnings, there’s an easy way to overcome this challenge with minimal hassle and complication.
Buying crypto gift cards from specific brands and businesses can solve this challenge once and for all. This is a great way to eliminate all the hassle from the entire ordeal of choosing an ideal gift for someone while also making good use of your cryptocurrencies. But, what are crypto gift cards exactly? Let’s find out.
What Are Crypto Gift Cards?
Crypto gift cards are very similar to conventional retail gift cards, except that users use their cryptos to purchase these cards instead of fiat currencies. Many platforms enable users to buy gift cards using their cryptocurrencies.
This means anyone with enough cryptocurrencies in their wallets can visit a platform that sells crypto gift cards and purchase them from the brand of their choice. First, however, it is important to ensure the gift card recipient has a crypto wallet.
Pros And Cons Of Crypto Gift Cards
Now that you understand crypto gift cards, you must understand the pros and cons of these cards before buying them for anyone. So here are a few pros of buying these gift cards.
Pros Of Crypto Gift Cards
1. Potential To Increase In Value: Everybody is well aware of the volatile nature of cryptocurrencies. However, only a few know how to use the said volatility to their advantage. For instance, buying crypto gift cards using well-performing cryptocurrencies such as Bitcoin means chances are high the value of the gift card will increase with time.
Therefore, if you are planning to buy crypto gift cards for anyone, it is highly recommended to study the crypto market and use specific cryptocurrencies that have been increasing in value for some time. However, this can be confusing with so many cryptocurrencies available in the market, so feel free to seek assistance from experts to make the best decision.
2. Send Your Gift Cards Anywhere Around The World: One of the best qualities about cryptocurrencies is that borders do not bind them. This means you can give your crypto gift card to anyone from any place worldwide, provided they have access to the internet.
For instance, suppose you live in the US and need to send a birthday gift to a friend living in India. In such cases, sending the person a conventional gift would be almost impossible. Therefore, the best and most convenient option here would be to send a crypto gift card that can be redeemed in India.
3. The Educational Aspect: There is no denying the fact that cryptocurrencies are gaining more and more prevalence every day. However, many still remain uninformed about cryptocurrencies, and even if they are aware, they might be wary about investing money in something they do not quite understand.
In such cases, gifting that person a cry[pto gift card can be an excellent way to educate the individual about cryptocurrencies. This might even encourage them to start trading in cryptocurrencies and generate more revenue.
4. Buying Gift Cards Using Cryptocurrencies: Spending your cryptocurrencies on conventional purchases can be challenging. One easy way to tackle this issue is using your cryptocurrencies to buy gift cards from established crypto processing platforms.
This process is very simple as all you need to do is go to Coingate and purchase the gift card of your choice. This way, you get to spend your cryptocurrencies in a hassle-free manner while gifting your loved ones with a gift card for their preferred brand or product.
Cons Of Crypto Gift Cards
1. Taxation: Recently, governments from different countries have been taxing cryptocurrencies to regulate crypto transactions. This has its adverse implication on anyone sending or receiving crypto gift cards.
Taxation always has adverse implications in the centralization approach to this decentralized concept. Therefore, it is best one enquires and acquaints themselves with the taxation regulations associated with crypto gift cards before sending or receiving one.
2. Volatility: The volatile nature of cryptocurrencies can work both in your interest and detriment. While prominent cryptocurrencies such as Bitcoins have been on the rise for quite some time now, no one can guarantee if that trend will remain as it is.
This means when you buy crypto gift cards, the chances of it increasing in value are there, but there are also the chances of the crypto decreasing in value which would be detrimental to the recipient of the gift card.
Almost everything in this world comes with its own advantages and disadvantages. Crypto gift cards are no exception, but on the bright side, the cons of these gift cards are relatively less than the pros. Therefore, it would be safe to say that gifting crypto gift cards would not be a very bad idea after all.