Can Cryptos Become Viable Currencies?

Welcome back to another week in the tradesphere! The Contentworks crew are back with our usual Monday morning report, ready to set you up for another week of trading. Today, we’ll be tackling another important (and very divisive) topic, before giving you a run-down of the top trading events this week. Let’s get to it!

Crypto as a ‘currency’

This in itself is a contentious topic. Many people, both inside and outside of the crypto space argue that these instruments are never going to replace actual fiat currencies. Some even believe that was never their purpose. Some are suspicious of cryptos as being linked to a cashless Great Reset. Others, of course, are staunchly optimistic that a decentralised global financial system is attainable.

Regardless of which side of the fence you’re sitting on, one thing cannot be denied — crypto can be a viable means of exchanging funds and/or paying for things. We’ve already witnessed it.

So for now, it might be best to discuss crypto as an additional payment method, as opposed to something that will replace an actual currency.

Which cryptos could make it?

When talking about cryptos as a viable means of payment, one name instantly comes to mind. Bitcoin.

BTC is the only crypto (to date) with both the global profile and technical capacity to succeed as a universally viable form of payment, and it’s already making good in-roads. A 2020 survey by HSB revealed that 36% of small-medium businesses in the US accept Bitcoin.

So, who accepts Bitcoin as a form of payment?

Papa John’s

The pizza chain famously accepted 10,000 BTC as a viable payment for two pizzas way back in 2010. It was an Oh No moment for the BTC holder. Bitcoin Pizza Day is celebrated every year on May 22.

PayPal

Yep, payment giant PayPal officially allows users to pay for stuff in bitcoin and other leading assets upon checkout with various vendors.

That’s a biggie.

Sotheby’s

Last week, it was announced that a rare pear-shaped diamond that will soon go up for auction can be bought using cryptocurrencies at Sotheby’s. They expect the diamond to go for upwards of $15 million.

…that’s about 480 Bitcoin, if you have any lying about.

Wikipedia

The company that operates everyone’s favourite open-source encyclopedia, famously relies on donations from all over to keep the site up and running. Wikimedia would be foolish not to accept such donations in Bitcoin. Which, of course, they do!

Amazon (sort of)

Okay, so Amazon doesn’t accept Bitcoin directly, but you can use Purse.io to shop for anything on the site and pay with Bitcoin. The site connects people who have Bitcoin and want to shop on Amazon with those who want to receive Bitcoin in return for fulfilling an order. Neat.

Burger King

According to local news reports, Burger King outlets in Venezuela made a partnership with Cryptobuyer in order to accept cryptocurrencies as a mode of payment. Customers can pay in Bitcoin, Dash, Litecoin, Ethereum, and Tether.

Microsoft

Microsoft allows users to top up their Microsoft accounts with Bitcoin. The relationship has been a shaky one, with the software giant previously halting its acceptance of BTC only to reverse it shortly after.

ExpressVPN

One of the most popular VPN services in the world, ExpressVPN is a subscription-based service that accepts Bitcoin as payment.

Tesla

Another shaky one… Do they? Don’t they? At the time of writing they did, and now don’t, but very definitely might again in the future! But who knows what is happening by the time you read this…

Earlier this year, Elon Musk sent shockwaves around the world when he declared that Tesla would accept Bitcoin as a payment method.

How Elon Musk’s tweets have moved bitcoin prices

Source: Recode by Vox

The markets then went bonkers when he reversed that decision on environmental grounds. Tesla then recently semi-u-turned again, with Elon saying he would consider accepting BTC again.

Is your head spinning yet?

So where’s this all going?

You get it, loads of companies are jumping on the Bitcoin trend. Is it a surprise? Not really. Why wouldn’t they?

As crypto grows in popularity, more and more people buy into the concept of its use as a legitimate means of payment. Bitcoin is by far the best known crypto and by accepting payment in the crypto, these companies (and many more besides) are simply hedging their bets.

It’s always been interesting to see the continued cyclical relationship between Bitcoin’s price, its popularity, media speculation around the crypto and its subsequent commercial acceptance. Things are only really just getting started. This is one to watch, for sure!

Top trading events this week

Events are few and far between this week, here’s when and where you need to tune in.

Monday

● No major events are planned.

Tuesday

● USD — CB Consumer Confidence (JUN)

Wednesday

● CNY — NBS Manufacturing PMI (JUN)

● GBP — GDP Growth Rate YoY Final (Q1)

Thursday

● USD — Markit Manufacturing PMI Final; ISM Manufacturing PMI (JUN)

Friday

● CAD — Balance of Trade (MAY)

● USD — Non Farm Payrolls (JUN); Unemployment Rate (JUN)

Here at Contentworks we closely follow market movements and prep content that we think your traders would love to read. Let’s get you started right here.

Speak soon,

The Contentworks team

Contentworks is a content marketing agency that's all about telling your story and achieving your goals. Unless you want to climb Everest.