Five years ago, cryptocurrency’s total market capitalization stood at less than $0.5tn. Today, it is around $4tn, or eight times the size. Its adoption continues to grow with an increasing number of people holding the digital asset, and an expanding number of businesses accepting it as an alternative to traditional payment methods like credit cards and bank transfers.
With the US in the process of regulating areas of the market, and other countries likely to follow in the near future, adoption rates are only likely to increase further.
Crypto In The UK
With that said, much of the cryptocurrency action occurs in and around major cities like London and Manchester in the UK. The Isle of Wight may have crypto holders, but there aren’t many physical opportunities to use coins or tokens at local businesses. As well as investment opportunities like crypto futures trading, there are many other ways people can spend or use cryptocurrency on Dinosaur Island.
Crypto Investment
Although it was designed primarily as a means of transferring value from one party to another, cryptocurrency’s most popular use is as a means of investment.
Since 2013, when Bitcoin past the $1,000 mark for the first time, digital gold has been hitting mainstream media headlines, especially thanks to the large sums of money it made early investors and skilled traders. Many people are still looking to repeat these gains, either from Bitcoin or from one of the thousands of other cryptocurrencies available.
Recently, exchange-traded funds have made investment easier, while staking, loaning, and other crypto investment opportunities have offered diverse methods of making money from cryptocurrency portfolios.
Centralised and decentralised exchanges are globally available, including on the Isle of Wight, and with an estimated 12% of UK adults holding cryptocurrency, this is the most likely reason.
Business Crypto Acceptance
There are approximately 7,000 businesses on the Isle of Wight, a large number of which are small businesses. Any business can accept cryptocurrency, but for a lot of traditional businesses, it requires extra investment of time or money.
Banks don’t accept cryptocurrency remittances, which means the merchant needs to download and use a crypto wallet or find some alternative method of accepting these payments.
While this can be prohibitive for some organizations, others not only accept but actively welcome cryptocurrency payments, if you ask.
Payment Gateways And Crypto Cards
The progression of cryptocurrency technology and especially payment gateways means it is possible for consumers to spend cryptocurrency at stores and businesses that don’t directly accept it.
Some payment gateways let people pay using crypto, which is then automatically converted to local currency before it is forwarded to the retailer’s account.
Alternatively, some fintech companies offer crypto debit cards. The card is connected to the user’s crypto wallet. When they spend money at a store or business, the crypto is directly converted to local currency before being paid to the merchant.
The Gift Card Solution
Another alternative for crypto-keen consumers is the purchase and use of gift cards. Gift card websites sell digital codes to consumers, and many now accept cryptocurrency payments.
The codes are emailed or sent automatically, and payment is completed instantly, which means this only adds one or two extra steps in the purchase process, and it means consumers can buy gift cards for companies like Amazon as well as for some national and international stores.
Software Purchases
Cryptocurrency is also somewhat popular with software and Software as a Service businesses. VPN businesses, for example, are seemingly among the most likely to accept this alternative payment method.
With some shopping around, consumers can also find businesses like hosting companies, while freelance professionals and self-employed professionals may also take this form of payment over others.
Gaming Payments
Gaming is another popular area. This includes online gaming. The buyer pays using cryptocurrency and is then sent a download link or a key to the game. Players can also buy individual in-game items for some titles. The process is instant, and it can be used to download games on virtually any platform.
One area where cryptocurrency has become especially popular is online gambling. Betting sites and online casinos accept cryptocurrency because of its instant payments, even from overseas accounts.
Conclusion
A quarter of small businesses have used cryptocurrencies, which means, statistically speaking, at least 1,000 Isle of Wight businesses have used the likes of Bitcoin before. And, in a lot of cases, this means they may be willing to do so again.
While they might not advertise their acceptance of these currencies, it is worth asking. Furthermore, e-commerce stores and international businesses are increasingly likely to accept the currencies, giving an increasing number of opportunities to use this emerging financial technology.
For now, however, it is difficult to find physical Isle of Wight businesses that do accept crypto payments directly.
