Spending Crypto – Post #3
Continuation from Spending Crypto – Post #2
Wait we forgot something!
I could I have forgot about this. Am I so tunnel focused on the CryptoBack experiment that I forgot to mention buying crypto usually has a fee associated with it?
So besides the now complicated tax implications, we need to review how much it costs to buy crypto to pre-fund the debit card.
You know its not sounding like global adoption of crytos is going to happen soon, Grandma will not bother with this nonsense!
What does it cost to buy crypto then?
I have found between 1%-1.5% is about average on an exchange. Now, one could argue that a professional trader can do it for as little as 0.10% fee benefiting on the pro-exchanges maker/taker fee structure. But for the rest of us, not going to happen. You know its not sounding like global adoption of crytos is going to happen soon, Grandma will not bother with this nonsense!
This on ramp/off ramp exchange fee cost would basically neglect the 3% CryptoBack plan making this idea a potentially break even adventure. In addition, this could even be worse. A bear market environment could wipe out the crypto value surely losing you a lot of money!
However I do find it amusing to see tweets like these below and get caught up in the “what if” :0
Whats the conclusion?
My conclusion is that although its a great experiment I would love to deploy. I think the crypto regulations are not quite there to have the masses even entertain the practicality of using crypto in established economies. That's not to say that there is not a great use case in emerging economies or economies in distress to benefit from “Spending Crypto”. I think we already see that playing out in the world today. But more importantly, then there is this tweet:
..., then there is this tweet:
All Spending Crypto series:
Spending Crypto – Post #3
Credits:
Photo by Dmitry Demidko on Unsplash