Assume you have read the white papers about different cryptos; now it’s time to dwell and invest your money in digital currencies. You then decide to settle on bitcoin as your first choice, and you purchase it.
As time goes by, you become familiar with the companies allowing crypto as payment methods, and you go ahead to shop there. Now, crypto becomes your daily currency as you abandon the fiat. But is that all-crypto lifestyle possible in the real world?.
It’s ambiguous for an individual to transform everything into crypto. One cannot just wake up and transform all the money in the bank to crypto; that is a big risk. However, we have a good number of people who trust digital currency, and they live 100% crypto life. So let’s break down this on how you could make a great choice into an all-around crypto enthusiast.
Determining your investment thesis
Before you make any tough decisions, start by reasoning on the advantages and disadvantages that might come up. Then, draw a thesis and have a strong backup behind the model. For example, many Gen Z members have shown interest in how they will live 100% an all-crypto life in the future.
A certain young girl from Miss Teen Crypto, a social media influencer, spoke to CoinDesk about the crypto life. “I grew up through digital communication like emails, text messages, FaceTime, Skype calls.” The 18-year-old Randi Hipper praised the power of social media applications like Snapchat, Facebook, Instagram, calling them “everything that life needs.”
She went ahead, “So with the whole concept of communicating over the internet, why wouldn’t we transact over the internet and use the money of the internet?”,. For sure, everyone in Gen Z was born when the internet was booming out. Platforms like Snapchat, Facebook, and Instagram have a lifespan of less than 20 years. So the generation has enjoyed and tested the power of social media and other internet channels. Now they want everything online.
In an interview, another young man, Brian Harrington, is afraid of inflation rates involved by fiat currency. The major decision in operating everything in crypto is because of fluctuation in rates of fiat money. Harrington works at Choice App as a product marketing manager. The company deals with the provision of retirement accounts for bitcoin investors. Most of his life is in bitcoin, so why not become an all-crypto lifestyle person.
He condemned the U.S. dollars for losing a lot in goods and services. The dollar reduced by 7% during the last quarter in 2021. According to the U.S. Bureau of Labor Statistics, the price index for different categories shoots by 7.5% in one year.
The first step is if you want to go in an all-crypto lifestyle, choose a single coin that you have much information about. Financial experts have always advised new investors to use the most popular coin, which is bitcoin. Among the 17000+ crypto on the market, bitcoin is one of the most volatile, but it has been in the market for a long. Just be prepared for the rise and fall of the outliers. Those outliers are mainly linked to decentralized finance or applications protocols. When you have more than two years in crypto, you can diversify your investment in different coins for safety.
The availability of crypto cards makes everything amazing. You can then choose between prepaid crypto debit cards or credit cards for your everyday shopping. Just do research the tax being charged on each of them.
The decision to pay bills via crypto will depend on factors such as circumstances, financial obligations, and the age of an individual. Feel free to pay rent, health insurance, car payment using the crypto debit or credit cards.
When we talk of age, people like Hipper, who still lives with her father, might get enough time to learn from his mistakes. Suppose the debit and credit cards don’t work well as she expected, she will return to her parents. But if one has transformed to adulthood, where they depend on themselves, it might be difficult to shift in that direction. Others have an active mortgage already where car payment gets deducted from the bank account directly. This means that it might be easier to start from zero than transform in the middle of the journey. However, everything is possible if you possess a positive mind.
Hipper admitted that he doesn’t have a car and has no monthly expenses for car repair. The young crypto enthusiasts launched her decentralized Twitter account in 2020 when the price of a single bitcoin was only $7,700. The young man had structured down some plans and was eager to transform into an all-crypto lifestyle.
In 2022, Harrington has finalized all the mortgages. Everything from his family is being operated under bitcoin-only. The young man felt like this was the most convenient moment. However, he said it’s important to have spate foot, one in crypto the rest in the real world.
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Daily bills and Purchases
A researched has shown that 33.33% of U.S. small businesses and startups have started accepting crypto payments. But this doesn’t automatically prove that you can buy things like groceries, gasoline, or coffee with bitcoin. A large section of payments, mortgages, and utilities require accurate communications through Automated Clearing House networks. Other businesses will accept debit or credit cards while charging the normal fees, commonly called crypto rewards.
Harrington says he will pay in bitcoin, anywhere that accepts the crypto. However, if a business or company doesn’t allow bitcoin, he will be prompted to use credit or debit cards. This will subtract the amount from his bitcoin account. Bitcoin mobile apps continue to multiply, making it easier to choose the faster method.
Converting savings into crypto
Although crypto is very notorious when we talk of volatility, it becomes a positive vibe when you think of long-term goals. Many investors feel it’s fine to transform all your savings into bitcoin. According to Twitter users, many people feel okay to check their bitcoin accounts rather than the fluctuating U.S. dollars.
As inflation rises, people have argued about putting all their savings and checking accounts in bitcoin. Harrington speaks about the long-term interest you might get with the saving accounts. He proceeded, “The increased amount of having bitcoin as your total base of money even overcomes capital gains taxes. You end the year wealthier than if you only had bitcoin as your savings and U.S. dollars as your checking,”
Marguerita Cheng’ a certified financial planner from Washington DC, would not accept that strategy incase of crypto market crash. She said “If you start to follow that you’re going to get caught up in fads, not trends.” Cheng’ doesn’t recognize the crypto market as a fad. However, she admits that it’s still very limited to engage in calculating projections.
The financial planner proceeded, “There’s a difference between investing, saving, and speculation. We need to learn how to save so that we can invest, and we need to invest to build wealth. But, unfortunately, cryptocurrency is very volatile.”
There is a possibility if your bitcoin got stolen, no one will stand in between. But with the bank, FDIC insurance cover might loom in to cover a certain portion of your lost money. Crypto is not 90% even secure. The fact that there is less to no instruction makes it worse. Some crypto products have started offering theft insurance, which resembles the FDIC.
What about investing in Your Savings for future goals?
It’s with great joy that some firms give their employees an option to use crypto for their retirement portfolios. This can attract one to be an all-crypto user. One of the best examples is Happer company, Choice App. In the app, users can transfer funds just like the old IRAS and 401(k). They then connect to the bank accounts using the Plaid platform.
Another company offering retirement options for crypto investors is Blockmint. But before investing in them., makes some steps to read on how they operate. For example, many old Americans have employed Digital Asset Investment Management because of the tax advantage on retirement accounts.
Subtracting your debt
Economic professionals have always warned people about investing while having large debts. You must have a priority list before making such a tough decision. If you decide to invest with debt, make sure the returns are much higher than the interest accrued.
Investors must understand that crypto is just a possibility, but debts are something sure you have to pay. Financial experts have insisted on paying high-interest debts and some minor personal loans. Then, after being free, you can now invest the amount you want in bitcoin.
A good example is Harrington, who bought two fully furnished mansions before switching to an all-crypto person. He first stepped aside from bitcoin to prepare a mortgage for a certain period. This method will free you from fiat assets that can cover closing costs for move-in.
If you have done all your projects and are okay, it’s now the right time to shift back to bitcoin for future investment. Being an all-crypto individual looks good. The lifestyle is simple and pretty.