Is Cryptocurrency for Spending or Saving Money?

Cryptocurrencies have been disputed by many for a long time who categorized it as a temporary fad and predicted a downward spiral of its value. A decade later more than 2500 cryptocurrencies emerged on the market which is still going strong disputing the naysayers. In the meantime, many investors got interested in putting their assets into cryptos leading the way for ordinary people to try out their skills on the free open market.

Over the years different views developed on what exactly cryptocurrencies are good for – investing, saving, or buying. The truth is that it all depends on your personal needs, so read along to find out the advantages and disadvantages of each one.

Source: Los Angeles Times

Are cryptos good for saving?

Eleven years ago, the value of 1BTC was 1 penny. Today, Bitcoin is getting close to $15,000 for one coin. What drives the value up? Many factors, but mostly the fact that there is a limited number of coins on the market, namely for Bitcoin – 21 million. It will never be more coins available, and no one can create it including its founder Satoshi Nakamoto.

On the other hand, traditional currencies are created all the time by its governments whenever they need it. In the US, the Federal Reserve, which is a private company, holds power over how much money will be circling around. The more they print, the higher the inflation and the value of the dollar plunges. If you put aside $1000 20 years ago, today you will get less than that. Again, inflation.

Have you noticed those lottery winners always opt-out for lump sum instead of payments spread out for 20 years? For the same reason – in twenty years their winnings are going to lose its original value, so the payout is going to be less.

With cryptocurrencies there is no inflation, hence their values can only spike. Even though there have been some major fluctuations throughout the years, the value still kept going up. If you’re one of the lucky ones who’ve seen cryptocurrencies as the future of financial transactions and currencies in general, you’re probably a millionaire today.

Why not put the money in the savings account? You can, but the notoriously low-interest rates will not be enough to cover for the inflation, meaning you will still be losing money in the long-term. Cryptos, on the other hand, will be only gaining value so saving cryptos looks like the best bet as a lasting investment.

Source: Kryptographe

Are cryptos good for spending?

Whenever you save money, it always comes the time to spend some. Recently, more and more retailers started accepting cryptocurrencies as a form of payment. This spiked the value again, and digital coins seem to be unstoppable. Digital monies have found their way to present themselves as the most secure, reliable forms of transferring funds. Compared to traditional bank transfers which are usually slow, and packed with all sorts of fees and cut-off times, cryptocurrencies are fast and free, or with very small charges attached. Not to mention that transfers can be done 27/7/365, even on holidays whereas banks are traditionally closed for the business.

Considering everything, why is it even a question whether or not cryptos are good for spending? There is a downside to it. Digital coins are notoriously volatile, the market is unstable, and values can differ by large in one single day. Simply put, if retailers accept your Bitcoin, for example, in the morning, it might not be worth the same in the evening. This is a huge risk for businesses and many are not willing to gamble with their profits. The truth is, cryptos have been very erratic in the past couple of years with their values going up and down by thousands of dollars in a week. This is a major downside and the only reason keeping big companies from accepting cryptocurrencies.

The solution might lie in the cryptos whose values are attached to one of the traditional currencies, like the British pound or US dollar. Those coins are stable for the most part and their value differs only as the currency they’re pinned to changes, which is usually minuscule. That way everyone can be protected from the wild changes at the open market, but still, be able to accept cryptos as payments.


What does the future hold?

Many speculators predict clear skies in their forecasts for cryptocurrencies stating that, as the coins mature, their values are going to become more stable and the market will sail into the calm waters. This is a very optimistic prognosis that digital coin’s creators’ bank on. If the cryptos were so stable in the future, many if not all retailers will be comfortable enough to take it as a payment, or even list the prices in digital coins.

It’s hard to say whether or not cryptocurrencies are right for someone. It all depends on what is it that you’re looking for – to save with a high return, to avoid paying bank fees, or something else. Personal goals are the deciding factor. However, one fact is undeniable – the values of the cryptos are going to rise, and since there is a cap on the volume and no inflation, we can expect it to gain in worth as much as 10% every year. This seems to be the top interest rate in the world for savings, of so-called HODLing. If you’re looking to use it to buy products and services, it might be a gamble. You might end up regretful for a long time if the value of the coins continues to rise.

Whatever you decide to do with your coins, chances are you are going to be on the winning team. Looking back, even with all the volatility and insecurities, digital currencies still managed to find their way to the public. Although cautious, retailers are more and more willing to follow the latest developments and accept cryptos. Read more about the markets, Bitcoin, inflation, and the future of the cryptocurrencies in general at There is no doubt anymore that cryptos surpassed its traditional counterparts in many ways.