In the year 2018, the #PayWithLitecoin movement may gather speed. Other digital assets like Nano (XRB), formerly RAI Blocks, offer a fast network with instant transactions. DASH aims to resemble a bank account as much as possible.
If you are buying something using #LTC
, don’t forget to take a picture and tweet with the #PayWithLitecoin
Even Bitcoin is back as a suitable means of payment, now that fees have become more reasonable and the transaction backlog has cleared. Yet paying with an asset of an uncertain price has its risks. It is quite possible that merchants end up losing – or the buyer gets a “pizza moment”, calculates that he now has a $30,000 laptop, or other forms of regret. But there are good reasons to spend crypto coins, especially in their early days.
- Spending a coin increases its popularity by expanding the pool of owners. The more owners there are, the more knowledge about the coin and its capabilities. Spending a coin builds the community – and may in fact work to increase the price, or at least give the coin a price. Imagine a coin that has never hit exchanges, and may never do so. Out of boredom and desperation, miners and early owners start using it to pay for food, drink, or other niche items. This helps the coin survive the early years and become visible enough to warrant an exchange listing.
- Spending stress-tests the network in a good way. For some coins, and especially Bitcoin, the network load has two modes: either empty blocks, or a meltdown during pumps and days of hype. Most transactions are to and from exchanges. Spending a coin would challenge the performance of the network when it comes to carrying daily transactions. Even if a project promises thousands of transactions per second in test mode, having a real transaction confirm for a momentary purchase is a much better marker.
- Spending a coin improves the technology. Payment systems and plugins are having a revival, after many sites removed their early Bitcoin payment options. Now, a new ecosystem is rising, spanning many more digital assets. User-friendliness is of utmost importance, and with more crypto spending the glitches may smooth out. Card payment options also had their stress test a few weeks ago when a VISA intermediary was denied services, but that channel of payments may see improvements.
- Spending crypto coins creates a crypto economy. There are now many peer-to-peer payment systems – but where are the peers? There are many coins that have specific niches. Gaming, gambling, technology services, or even freelancing, education and online content – all of these can grow and offer value, if users connected with them and made the coins flow.
- You will actually receive value. Let’s not get fooled: even if a coin gets traded at a dizzying price level, this hardly means your stash ensures certain riches. There is no guarantee for always having ready buyers. So spending crypto is in fact a way to transform the value of coins just sitting around into something that is immediately wanted, or useful. Store of value is a good idea, but the idea of value is to move around and actually do things. So if spending crypto coins today would improve your life for years to come, why not do it?
Buying a laptop, hiring a freelancer, or making an in-game purchase transform the static value of a coin into immediate energy injected into the system. People are getting things done and moving onward. And while it may be wise to have a stash of coins just in case, and some for trading, having a spending wallet is also a good idea, if you have a favorite niche that would accept crypto payments.