Simplifying Life for Crypto Earners: The Power of Crypto Cards

If you’re not living under a rock, you’ve probably noticed that crypto cards have been gaining serious momentum lately. According to CNBC, Visa announced that cryptocurrency-linked card usage hit $2.5 billion in its first fiscal quarter of 2022.

While much of crypto's appeal is in its investment potential, it still has a use case in transferring value. In that same interview to CNBC, Visa CFO Vasant Prabhu noted that card users are treating their crypto-linked cards as general-purpose accounts, using them to make everyday purchases. "To us, this signals that consumers see utility in having a Visa card linked to an account at a crypto platform. There’s value in being able to access that liquidity, to fund purchases and manage expenses, and to do so instantly and seamlessly,” he added. 

Let’s dig in and see if there's an actual value proposition behind all that hype.

Simplifying the Crypto Lifestyle

Crypto cards are a game-changer for those who earn their money in cryptocurrencies but still need to spend in fiat. They offer a seamless solution that simplifies life for crypto earners: be it traders, miners or crypto enthusiasts in general. With a crypto card in hand, you can easily convert your digital assets into fiat currency and make purchases at any merchant that accepts credit cards. You can avoid a hassle of transferring funds from crypto wallets to bank accounts or dealing with complicated and lengthy exchange processes. Crypto cards bridge the gap between the crypto world and the traditional financial system, providing a convenient, efficient, and, most of all, quick way to access your crypto earnings while navigating the everyday world of fiat transactions.

Data from crypto.com Visa Card holders backs this up, revealing that the majority of crypto card purchases are made for everyday essentials and mundane goods. Groceries remain the top spending category, accounting for 51% of all crypto spent on daily goods. Fashion, including clothing and footwear, has experienced the strongest spending growth at 50%, followed by transportation and recreation with a spike of 46%. Notably, out-of-home consumption has seen a significant boost, with ticketing for concerts, arts, exhibitions, and sports events surging by approximately 133%. Travel (32%) and dining (17%) have also witnessed notable growth. Among online transactions, eCommerce remains dominant, representing an average share of 53% of spending.

Valuable Tool for Crypto Earners

For people like traders, miners, and other types of crypto earners, cards serve as an indispensable tool. If a person relies solely on cryptocurrencies for their financial needs, they won't be limited in their ability to make purchases or payments in the traditional economy. Crypto cards provide the necessary liquidity and flexibility for individuals to transition smoothly into a crypto-centric lifestyle. With features like ATM withdrawals, cashback rewards, and enhanced security measures, crypto cards, now more than ever, provide a friction-free way to interact with the world using crypto.

The Road to Mass Adoption

Now, you might be wondering, when will crypto cards reach widespread adoption? It's a valid question. While crypto cards have gained significant traction, we're still on our way to mass adoption. As the crypto market continues to mature, and regulations become more favorable, we can expect an increase in the adoption of crypto cards. According to Crypto.com, their Visa Card holders have been using their cards in over 100 countries and regions worldwide, with 66% of travel spending taking place within the EU. Still, we have a long way to go, and things like increased awareness of cryptocurrency, decreased volatility in the cryptocurrency market, lower fees associated with crypto cards, and more merchants accepting crypto payments will definitely help on the road to universal acceptance of crypto cards in the future.

The Future of Crypto Cards

The future of crypto cards looks incredibly promising, with MasterCard expanding their crypto card partnerships. The market already experienced explosive growth, and projected to increase at a CAGR of 58.6% up to 2029. With advancements in technology, we can anticipate enhanced security features, wider acceptance at mainstream retailers, and seamless integration with decentralized finance platforms. Crypto cards also serve as a new on-ramp for the crypto market, attracting more casual users and integrating them into the ecosystem, helping with the overall growth of the market, which is projected to reach $4.94 billion by 2030. The convenience they provide is tangible already, and they serve as a stepping stone towards realizing the dream of cryptocurrencies becoming widely accepted and recognized as a legitimate form of currency, rather than solely being viewed as an investment opportunity.

TL;DR

Crypto cards have gained significant momentum, offering a practical solution for individuals earning in cryptocurrencies who need to spend in traditional fiat currency. With the ability to convert digital assets into fiat and make purchases at any merchant accepting regular payment methods, crypto cards bridge the gap between the crypto world and the traditional financial system. While mass adoption is still on the horizon, increased awareness, decreased volatility, and wider merchant acceptance will contribute to ubiquity of crypto cards. Even now, crypto cards are not just simplifying life for crypto earners but also acting as a stepping stone toward the wider recognition of crypto as a legitimate form of currency.