The future of finance is here. More US retailers are accepting cryptocurrencies as payment, albeit with the additional step of converting coins into cash first. For example, Walmart shoppers must first sell their Bitcoin or Ethereum holdings within the Walmart OnePay mobile app. Then, they can pay through the app by scanning the bar code at checkout (or pay online, of course).
According to QZ.com, Starbucks has been accepting Bitcoin and Ethereum since 2021 using a similar process through the SPEDN mobile app. However, Currently no retailers are accepting these instruments as direct payment.
Who benefits from shopping with crypto, even indirectly
“I haven’t seen any of these stores actually advertising payment with crypto [directly]Still,” said Brian Spinelli, co-CIO of Halbert Hargrove. “Walmart is starting to integrate it into the OnePay app.”
Still, for many people it is a huge advantage to be able to convert their crypto holdings into cash as needed. Whether shoppers use it to buy infant formula or just a Frappuccino, ability to Using cryptocurrencies as needed or desired could change the world of digital finance for consumers and investors.
“Even in the US there are a lot of people who are unbanked. They don’t use traditional banks, and this will make it easier for them to transition.” [crypto] Holdings in payment form, Spinelli said. “If you don’t have a bank account, but you have crypto on your phone… this is bridging that gap to allow mainstream retailers to reach a consumer base that maybe doesn’t have “Access to free banking like so many of us do.”
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Should you sell crypto to pay for groceries or holiday gifts?
However, selling crypto to cover expenses can be a costly move that you may regret if Bitcoin continues to appreciate.
“Bitcoin [should] It should be viewed as an investment against the depreciation of fiat currency,” said CK Zheng, co-founder and CIO of ZX Squared Capital.
You should also be aware of the tax implications. Currently, the IRS taxes digital assets as property, not currency. This means that any transaction must be reported as a capital gain or loss.
“You’re going to have a lot of profit-loss scenarios where you may have a lot of transactions to report,” Spinelli warns.
This can be very difficult to track, especially if you don’t have Tax accountant or financial advisor for help.
Also, remember that if you sell your Bitcoin to make a purchase and then return that merchandise, you will receive cash value, which could mean a loss on your initial investment.
However, if it’s a choice between carrying a balance on a high-interest credit card or tapping into your crypto stores, Zheng said, “avoiding high-interest credit cards is probably the better option.”
A good thing for investors?
Overall, adopt Bitcoin as a currency should help its value increase over time, which will be positive for investors.
“Bitcoin currently behaves as a mix of a high-tech stock and a store of value like gold. Its volatility is primarily driven by its perceived risk and its demand/supply processes,” Zheng said. “When Bitcoin matures and becomes widely used as a currency, its volatility will definitely reduce.”
“The more adoption there is, the more people using it, the more people owning it, it could stabilize it,” Spinelli agreed. “It has been a very volatile asset, and it still is. But the more it gets adopted, that’s a good thing for Bitcoin.”
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This article originally appeared on GOBankingRates.com: Walmart, Starbucks and others are accepting crypto payments: What it means for you
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