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    Cryptocurrency: Way Of Payment Or Investing

    Abstract:Cryptocurrency is the new currency. The intensity of this new cryptocurrency has almost reached a fever pitch, with more and more people looking to invest in cryptocurrency than ever before.

      Cryptocurrency is the new currency. The intensity of this new cryptocurrency has almost reached a fever pitch, with more and more people looking to invest in cryptocurrency than ever before.

      It is becoming increasingly adopted as an alternative, if not standard currency by many financial and commercial institutions and national entities as a fiscal tender.

      For many, cryptocurrency is more than a new means of doing financial transactions: it is also an asset. As an asset, cryptocurrency tokens like Bitcoin and Ethereum are valued for their financial worth — presently, Bitcoin price is well over $60k.

      And here lies a crucial point with the use of cryptocurrency: whether it should be used solely as a means of payment or an asset worth investing in, despite its volatility.

    What is Cryptocurrency?

      To many cryptocurrency investors, crypto is just an asset with good financial value and excellent liquidy. In truth, few investors ever bother to truly understand the technicalities of what is probably the most significant world invention since the advent of the Internet.

      Cryptocurrency is the currency of the blockchain. It is a highly encrypted and secure means of exchange that possesses enough of the qualities and properties of fiat currency to be accepted as a valid means of exchange.

      Today, different cryptocurrencies exist, but they all function the same way as the pioneer token, Bitcoin. They all run on a decentralized network as part of a linked digital ledger functioning with the consensus of the entire network.

      This provides a level of transparency never-before-seen in the financial industry. To many, cryptocurrency is the future of digital finance, and indeed, banking.

      But then, some questions remain unanswered: will cryptocurrency never evolve beyond its status as an alternative means of payment, or will it continue to gain in value as a worthy asset?

    Cryptocurrency as a means of payment

      As a means of payment, crypto is as secure and safe as it goes. Investors can buy Ethereum, Bitcoin, and other tokens and use them to pay for a range of products and services online.

      Although many businesses are still sceptical about using cryptocurrency, several others are beginning to see the positives of providing cryptocurrency channels as alternative payment methods.

      From QR codes to integrations with different eWallets and cryptocurrency exchange platforms, crypto is becoming an increasingly viable means of payment in retail and business in general.

      For one, cryptocurrency is thus favoured because of the relatively low transaction fees involved. Compared to the more traditional means of payment such as wire transfers and credit/debit cards, crypto is more favourable.

      In addition, the transaction speeds are unparalleled, while the 24/7 visibility of the blockchain makes it possible to view the status of any transaction at any time of day or night.

      These factors, and more, combine to make cryptocurrency the means of exchange of choice for payments in the business sector.

      However, cryptocurrency is much more than this. Its value lies in computing power, and, provided it can be mined, its value will persist, regardless of its status as a means of exchange.

      Does this bring us to the second part of this debate? How well does cryptocurrency perform as an asset for investing?

    Cryptocurrency as an asset

      The cryptocurrency market is highly volatile. The value of crypto tokens rises and falls without a moments notice. And, unlike mathematics and science, there are no fixed algorithms or phenomena with which to predict the market movements accurately.

      To invest in cryptocurrency, the first thing you will have to do is to create an account on an exchange platform. Popular platforms on which to buy crypto include Coinbase, GEMINI, and Binance.

      After this, you can then purchase with fiat the crypto equivalent that you prefer. Many platforms offer the opportunity to invest in various ways outside of regular trading.

      With the rise of decentralized platforms like Ethereum, it is now possible to earn from systems like liquidity pools. In addition, investors can even earn when they borrow, given a subsequent positive market trajectory for the token involved.


      There is nothing to suggest that cryptocurrency cannot be both a means of exchange and an asset for investment.

      As a payment alternative, it is a seamless method without the stress and complexity of the more traditional means of online payment. In addition, one can earn on crypto without even spending it. Its value as a solid asset cannot be denied.

      The rise of Bitcoin has been meteoric, to say the least. And many altcoins are following this precedent, making crypto investments even more attractive than they were a few years ago. It is clear, therefore, that crypto is here to stay, despite the scepticism of many.