In recent weeks, observers across the board have seen the price of cryptocurrencies such as Bitcoin and Ethereum skyrocket, blowing past the bold expectations of the most seasoned “Crypto Twitter” forecasters.
Predictably, such explosive price action has attracted legions of new investors seeking Alpha. Objective measures of this phenomenon are the record institutional inflows (billions of dollars invested with a sense of urgency rarely seen in Grayscale, Galaxy Digital, and other funds), decentralized exchange Total Value Locked (billions of dollars locked at the time of writing), and Transaction Flow, and the number of exchanges going down (Coinbase, Robinhood) due to the massive influx of brand new customers rabidly buying and selling.
With thousands of projects and tokens to invest in, it is safe to say that within the cryptocurrency market, and in the context of this new “Bull Run”, there is no shortage of investment opportunities.
Getting into the market is all well and good…
But How Does One Spend Cryptocurrencies?
Such a simple question and yet the answers to this are not obvious.
We would like to share a short guide on how (and where) to spend cryptocurrency. The information one can gather online is often outdated, inaccurate, and incomplete… Our guide doesn’t aim to be exhaustive but rather provide a “wide view” of what it is possible to do with your cryptocurrency holdings.
The Gig Economy
The gig economy, thanks to Covid-19 and the unstoppable rise of remote tech workforces, is expanding at a very fast clip. By 2027, 60% of the US workforce will be composed of independent professionals. Let that sink in for a minute: gig workers will vastly outnumber traditional workers.
Combine the sheer size of the gig economy, with the fact that a growing number of gig workers now prefer or outright demand to get paid in cryptocurrency… and you can see the size of the opportunity for fast movers.
A few platforms have emerged that make it possible for gig workers, regardless of their area of specialty, to get paid in Cryptocurrency.
If you are an entrepreneur and happen to hold some cryptocurrency, these platforms might be exactly what you are looking for. Direct Cryptocurrency payments to contractual workers are an excellent way to use your holdings.
Among the platforms that have emerged within the crypto gig economy, LaborX is a force to be reckoned with. Beautifully designed, it adopts a Fiverr-like approach to matching customers and workers, letting them freely exchange and negotiate in the chat portion of the site. Funds are sent by customers in advance and are kept in Escrow until the finished product or service is delivered, so LaborX gets extra points for security and for providing peace of mind to its users.
Other notable gig platforms include:
ETHlance
Cryptogrind.com
Workingforbitcoins.com
Canwork.io
Freelanceforcoins
Blocklancer
Online Retail
Cryptocurrency veterans will always remember how painfully difficult it was in the old cryptocurrency days to cash out safely – by cashing out safely we mean: without having one’s bank account closed without any reason by overzealous bank staff – and use their own money in order to purchase products and services.
Back then, anyone who wished to make purchases using the cryptocurrency they owned (we didn’t have the wealth of crypto checkout options we had today) had to literally jump through financial hoops, cash out using their bank account, and use their bank card to make the purchases.
Fast forward to 2021: things have certainly gotten a lot easier for cryptocurrency holders, thanks to a wider range of crypto checkout options designed specifically for merchants.
It is now possible to purchase products and services in cryptocurrency, without having to cash out to a bank account.
Purse.io, for example, allows users to import Amazon Wish lists and purchase the items on those lists with cryptocurrency – and in the process (we are not certain how this is achieved exactly) users can shave off up to 15% on the price of their purchases!
Alagoria allows users to make Home Depot and Walmart purchases, anonymously, while saving money.
Overstock.com, famous for its involvement in the crypto world is also known to carry a large assortment of furniture and household items, which can be bought with cryptocurrency.
The Online Retail Market is ripe for disruption and we certainly hope to see more options for consumers in the near future.
Offline Retail
It is safe to say that “Brick and Mortar” retail has taken a beating in 2020. The fear of Covid spreading has forced the hand of countless business owners who had no choice but to close their doors temporarily. Covid lockdowns are forcing offline retail to reinvent itself and the answer to the problems of retail might be Cryptocurrency.
A growing number of offline merchants now accept contactless cryptocurrency payments as a check-out method.
Cryptocurrency holders today have the option of using their holdings for online shopping but also in a growing number of more traditional, Brick and Mortar outlets that have implemented Blockchain technology in a bid to remain competitive.
PizzaforCoins, Cooperativa RadioTxi, Comicap, andAnshin Oyado are part of the growing list of offline retailers that accept cryptocurrency.
Gift Cards and Payment Cards
A few platforms allow cryptocurrency holders to purchase gift cards and payment cards using their cryptocurrency holdings.
You read that right! It is possible to purchase American Express, Visa, and Mastercard products, not to mention gift cards for literally hundreds of merchants, in various denominations, with cryptocurrency.
Gift cards and payment cards might just be the most convenient way to spend cryptocurrency, and this side of the market is rapidly expanding with a slew of emerging companies competing with large incumbents.
Coinsbee, Bitrefill, Crypto to Cards, and Jour Cards are reliable platforms you will want to check out and try for yourself.
Hotels and Flights
Don’t you wish you could just purchase flights outright without having to exchange cryptocurrency, as the fees for doing so these days are rather high?
Well, we have some good news for you: booking flights and hotels with one’s crypto holdings is now possible.
Using platforms such as CheapAir, Destinia, and Travelbybit, holders do not have to jump through financial hoops to make travel arrangements.
If you are looking for something a little more exotic and ambitious than a Vanilla flight, know that Virgin Galactic accepts Bitcoin as a means of payment for Space flights!
Casino Games and Sports Betting
The global online gambling market’s size was estimated at 53.7 US billion dollars in 2019 and reached a mouth-watering 59.6 billion US dollars in 2020. It is expected to grow at an annual rate of 11.5% from 2020 to 2027, which is very significant.
A few things are driving market growth here: high internet penetration, the increasing use of mobile phones for playing games, easier access to online gambling, legalization, and cultural approval. And let us not forget, the fact that people are literally stuck at home thanks to Covid-19 lockdowns around the world!
A few key players have emerged in the crypto market gambling space and it seems like gambling, sports betting and crypto payments are a winning combination for users and businesses.
Gambling and Sports Betting are very pleasurable ways to spend one’s Cryptocurrency. FunFair and SportX (for sports betting and e-sports) are dominant forces in the crypto gambling industry with a very loyal following on social media.
Blockchain Gaming
Such a wide overview would certainly not be complete without a section focused on entertainment and more specifically on blockchain gaming.
As our readers know, Covid-19 lockdowns have forced countless individuals to work from home. Perhaps you, the reader, are finding yourself in this situation right now.
Work is changing at a very fast pace… and so is entertainment. After months of lockdown, and with traditional entertainment venues such as theatres, bars, and nightclubs forcibly closed, individuals around the world have found or are finding new ways to entertain themselves without needing to leave their homes.
Blockchain Gaming (and especially this segment of blockchain gaming that converges with Virtual reality) is emerging as a clear winner. Blockchain is transforming the way we play games online.
If you are a gamer at heart and a holder, a plethora of games allow you to turn your holdings into items, virtual worlds, or playing cards, which can then be bought or sold on exchanges, and even used as collateral for crypto loans. Ubisoft and Enjin are among the companies that are pushing blockchain innovation forward in this space.
Conclusion
While this guide was certainly not exhaustive, it did provide a comprehensive view of the kinds of products and services it is possible to purchase with cryptocurrency.
As cryptocurrency and blockchain technology accelerates its unstoppable penetration of traditional segments of the economy, more and perhaps better options will appear on the market to further empower cryptocurrency holders.
Disclaimer: This is a sponsored post. Readers should do their own due diligence before taking any actions related to any company, product, or service mentioned in this article. BitcoinAfrica.io is not responsible, directly or indirectly, for any loss or damage caused by or in connection with the use of or reliance on any content, product, or service mentioned in this post.
Nigeria is ranked as Africa’s largest country with the most crypto traders and ranks third globally. The country accounts for the largest volume of cryptocurrency transactions outside the United States. In the last six months, it has been recorded that about 35% of the Nigerian population has traded cryptocurrency.
As encouraging as these numbers may be, Nigeria, as an environment, has been very unfriendly to cryptocurrency and its related aspects. Last year, the Central Bank of Nigeria ordered all commercial banks and lenders to stop transactions or operations in cryptocurrencies, citing a significant threat to the country’s financial system.
The ban on cryptocurrency in Nigeria was big negativity to the Nigerian youth, especially knowing that over 50 million of the population are involved in cryptocurrency. During this time, a lot of crypto trading platforms were shut down in the country. Also, many bank accounts suspected of dealing with cryptocurrency were locked, including their funds.
Even today (as of May 27, 2022), any bank transaction with a description or notes of “crypto,” “bitcoin,” “P2P,” or any crypto-related words will be locked away alongside the account(s).
The unfriendly treatment of cryptocurrency in the country is alarming. In the plight of making a positive solution, the community led to adopting systems where crypto traders could trade cryptocurrency without involving the bank.
Top 4 Problems Nigerians Face When Dealing with Cryptocurrency
Where to Buy or Sell Cryptocurrencies
Today, finding the right crypto trading platform that works for you significantly can be frustrating. Many cryptocurrency exchanges came into existence to aid in safer cryptocurrency transactions in the country. In this plight, some fraudulent platforms were made in disguise to exploit money from crypto investors. How would Nigerian crypto traders know which platform is genuine or not? With some checklists for selecting the best crypto exchange in Nigeria, you will be given key guidelines on how to choose the best place to sell bitcoin in Nigeria.
Speed of Transactions
A fast crypto transaction is important as the speed of cryptocurrency may block. Most times, transactions take hours to complete. Ideally, crypto transactions on regular crypto trading platforms take between 10 minutes to one hour. Surprisingly, some take over 5 hours. However, a few crypto transactions can take less than five minutes, depending on the app. In cases where we need transactions done quickly, or we accept crypto payments for your business, how do we intend to confirm payment before allowing customers to take their products? Should the customer wait for hours?
The speed of transactions has been a damaging factor for most Nigerian crypto traders. This has been a reason why many Nigerian companies find it difficult to accept cryptocurrency as payment options for their businesses.
High and Inconsistent Fees
Crypto transaction fees are another issue many Nigerians face. To really compare the best options for you, you have to look at the fees before and after conversion. What are the withdrawal fees, processing fees, and receiving fees,… These fees cause a huge discouragement in crypto trading in the country.
Limitations
It is saddening that many Nigerian crypto traders cannot make transactions because many of these crypto trading apps have put some limits on how much they can withdraw, receive, buy or sell. This breaches the purpose of cryptocurrency. Cryptocurrency has made it easy for people to send money from one place to another without a barrier. Why should I not be able to receive my funds because it is below your limit for withdrawal?
Limitations have made many Nigerians lose interest in cryptocurrency or lose their cryptos.
These factors, alongside many others, have caused the trading of cryptocurrency in Nigeria very difficult.
How Breet Solves Some of the Issues Nigerians Face in Cryptocurrency
Breet is an OTC crypto exchange platform that allows users and businesses who simply want to receive crypto and get a flat equivalent of their coin to convert their crypto to cash money immediately.
With Breet’s over-the-counter system, you are saved from the hassle of boring explanations of what and how crypto works and tedious illustrations of cryptocurrency market charts. Breet enables users to securely convert and withdraw their crypto coin to cash money in less than five(5) minutes without the use of peer-to-peer trading or any third-party agent.
Breet is a revolutionary new way to convert and withdraw your crypto coin without the need for peer-to-peer trading or any third-party agent. With just one click, you can have cash money in hand within five minutes.
With Breet, you can sell your cryptocurrency in less than 5 minutes. This is an incredible feature on its own, meaning businesses can now accept cryptocurrencies as payment options without having their customers wait for hours to confirm payment.
Breet is also completely free. There are no hidden charges, no withdrawal fees, no processing fees and no receiving fees. There are zero charges with Breet. Breet’s free usage solves the issue of high and inconsistent charges for many Nigerian crypto traders.
There is no limitation to how much you can receive or withdraw on Breet. You don’t have to have about 10,000 Naira worth of cryptocurrency before you can withdraw. You can even withdraw as low as 100 Naira with Breet Exchange.
Breet is simple, free and certified. There is not much sugar coating to tell before believing that Breet is, arguably, the best crypto trading platform in Nigeria currently. The incredible reviews on the Breet app give perfect evidence.
What more do you need? If not, a crypto exchange that makes crypto transactions easy and makes people happy. You should become a Breet user by downloading Breet mobile app available on all Android and iPhone devices.
The much-anticipated transition of the Ethereum network from proof-of-work (PoW) to proof-of-stake (PoS) consensus is finally taking place. The adaptation of PoS has always been the plan and a vital part of scaling Ethereum by future upgrades. However, abruptly shifting to PoS can pose significant technical and community challenges that are not as simple as using PoW to achieve network consensus. Having said that, what exactly are PoS and PoW?
Proof of Work
Proof-of-work (PoW) is a consensus algorithm that allows for the secure, decentralised verification of transactions on a blockchain. In a PoW system, miners are responsible for verifying and committing transactions to the blockchain. During the verification process, miners compete against each other to solve complex cryptographic puzzles. The first miner to solve the puzzle is rewarded with cryptocurrency, and the transaction is added to the blockchain.
Reasons To Shift From Proof of Work
The Ethereum ecosystem has evolved at an astounding rate in the last year. This growth was primarily due to a significant emergence and explosion of NFTs and Decentralised Finance (DeFi) initiatives. While the change-over was imminent, some factors to be considered for the same are:
The PoW consensus protocol requires users to utilise significant computational power to validate transactions and add new blocks to the network.
Users who devote their computational resources to the shared ledger are miners.
These miners are rewarded with Ether tokens in exchange for the computing power they have supplied to the network.
With PoW consensus, Ethereum takes up to 113 terawatt-hours of electricity in a year. According to Digiconomist, it is more than the total electricity consumption of the Netherlands per year.
The current Ethereum transaction with PoW consensus takes up energy equivalent to the consumption of one week of energy of an average US household.
With so many downsides to its cap, PoW has many advantages, which is one of the main reasons it has been a reliable consensus for so long. The PoW consensus has been robust and secure all these years. But the consensus can be utilised by a cryptocurrency with a massive valuation and relatively simple use case, such as the bitcoin. With the amount of energy and power involved, it becomes difficult for individuals to meddle with a high valuation asset.
Proof of Stake
The consensus protocol Proof-of-stake (PoS) has been introduced to address the issue of over-mining. Proof of stake (PoS) is critical to understand because it could eventually replace the proof of work (PoW) consensus mechanism that is currently used by most cryptocurrencies.
“PoS is a way to achieve decentralised consensus without using energy-intensive mining. It is an alternative to the more common proof of work algorithm. With PoS, a cryptocurrency’s blockchain is secured by its token holders who are required to lock up their tokens as stake and not by miners equipped with powerful hardware. It’s an energy-efficient, cost-effective and therefore, a popular choice for crypto giants like Ethereum,” states Dev Sharma, CEO of Blockwiz, a crypto marketing agency.
In contrast to PoW, in which the individual who completes the mathematical proof first is rewarded with new coins, with PoS, no new coins are created.
Benefits of Proof of Stake Consensus
Proof-of-stake introduces several enhancements over the PoS mechanism:
Improved resource proficiency – you don’t need as many energy mining blocks.
Minimal entry barriers, lower hardware requirements – Even if you don’t possess top-tier hardware, you still get ample opportunities to participate in the creation of blocks.
More excellent resistance to centralization – PoS would imminently facilitate the generation of more nodes.
Staking facilitates the operation of a node. It does not necessitate significant expenditure on equipment purchases or resources, and if you lack the ETH token to stake, you cannot participate in staking pools.
Staking consensus enables reliable sharding. Shards enable Ethereum to generate new blocks simultaneously, leading to enhanced throughput of transactions.
In a PoW mechanism, sharding the chain would reduce the amount of energy required to modify a particular network section.
In a Nutshell
Proof of stake (PoS) is a type of algorithm used by cryptocurrencies to determine who gets to create new blocks on the blockchain. PoS works by requiring users to lock up some of their currency in a smart contract called a stake. In return, they are given the right to validate blocks on the network and earn rewards.
The advantage of PoS is that it doesn’t require the massive energy consumption that PoW does. This non-dependency on massive energy utilisation makes it more environmentally friendly. It reduces the risk of centralisation since few users would be able to control the majority of the currency. Therefore, it’s no wonder that Ethereum is making the much-anticipated switch.
CEO Michael Wu joined Forkast News to discuss crypto’s consumer adoption and what’s next for crypto.
CEO Michael Wu joined CNBC Street Signs Asia to share how Amber Group seeks a balance between regulation and crypto development.
CEO Michael Wu gave an interview with Economist Impact at Technology for Change Week on how to stay ahead of the curve in the fintech space.
Managing Partner Annabelle Huang joined Economist Impact’s Asia Trade Week to discuss the future of crypto as payment in Asia.
Managing Partner Annabelle Huang joined Avalanche Summit to discuss the opportunities and challenges in DeFi.
Managing Partner Annabelle Huang joined Goldman Sach’s panel discussion on “Digital assets – Investing in the future” to celebrate International Women’s Day.
Managing Partner Annabelle Huang gave a guest lecture on DeFi and Web3 for the International Finance class at Singapore Management University.
Managing Partner Annabelle Huang joined the DIG FIN VOX podcast to talk about Amber Group’s move to Singapore and into retail.
CSO Dimitrios Kavvathas joined Blockchain Africa Conference 2022 to discuss institutional investment in crypto.
CSO Dimitrios Kavvathas joined FinTech Festival India at a panel discussion on “De-Fi – A better solution for peer-to-peer lending”.
CSO Dimitrios Kavvathas joined the World Blockchain Summit in Dubai at a panel discussion on “Fostering the global crypto ecosystem”.
Europe Managing Director Sophia Shluger delivered a keynote speech on digital wealth at Blockchain Africa Conference 2022.
Europe Managing Director Sophia Shluger joined the CryptoCompare Summit in London to discuss the building blocks of the new digital economy.
Europe Managing Director Sophia Shluger joined the FundFocus Europe 2022 conference to discuss the foundation for the widespread institutional adoption of cryptocurrency.
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Latin America Managing Director Nicole Pabello joined the Ethereum Rio conference to discuss the LATAM Ecosystem in the world.
Institutional Sales Director Justin d’Anethan joined EmergentX’s Annual Digital Asset Summit to discuss the institutionalizing of the digital asset industry.
Managing Director Ben Radclyffe joined Credit Suisse’s Asian Investment Conference to discuss the spillovers between crypto and equity markets.