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Integration of Credit Card with Digital Currencies, Bringing Crypto from Hype to Mainstream

Digital currencies are becoming a new normal for the past few decades.

Digital innovation is emerging at the speed of light in the digital space to make cryptocurrencies more safe, useful, reliable, applicable, and ensure their global presence. Digital currencies utilize blockchains as additional networks, similar to ACH and RTP networks.

Previously, the number of fiat gateways for cryptocurrencies was limited, and users were only bound to bitcoin ATMs and wire transfers. But the ecosystem has changed tremendously in recent years. Financial giants such as Mastercard and Visa have started to look into making their platforms interoperable with Bitcoin and numerous other digital assets.

If you have Bitcoin and want to use it for everyday transactions, you might consider crypto credit or debit cards.

The W’s of Crypto Credit or Debit Cards

Before the existence of crypto cards, people had to use third-party platforms to use their digital assets to carry out the payment process of goods and services. Indeed crypto cards have solved a wide range of challenges and solved the issue of inconvenience in the best possible manner.

Let’s have a look at some basic frequently asked questions about crypto credit or debit cards everyone must know.

What Is a Crypto Credit/Debit Card?

Crypto credit and debit cards work the same as regular payment cards, and the only twist is that they involve cryptocurrencies and other digital assets for the payment of products and services instead. Interestingly, crypto credit cards first convert the digital assets into local fiat currency before sending the sum to merchants, instead of directly paying through Bitcoin, Ethereum, and various other crypto assets. Crypto credit cards are made possible with the help of two giant financial networks, Visa and Mastercard.

How Does The Crypto Credit Card Work?

The usage of crypto credit cards depends on the underlying business model it adheres to. Among them, few of them have a tight monthly withdrawal limit. While some may not grant its customer any rewards, few even force you to give up your custodian privileges. Talking of custody, there exists platforms that require you to create a dedicated wallet, and there are also platforms that allow you to use your personal digital wallet. You can start making purchases and payments by developing a connection with crypto funds via the card.

Crypto credit cards have the same regulations and restrictions as regular credit cards, as all the credit cards are licensed by either Visa or Mastercard.

Who Are These Cards For?

Crypto credit cards are best for you if you have accepted the fact that the whole world is accommodated to digital assets. You are not limited to dollars, euros, yens if you use crypto credit cards. You have the liberty to spend cryptocurrencies anytime and anywhere. Your digital assets are made significantly more portable by acquiring crypto credit cards. Previously, use of cryptocurrencies in stores typically took 30 minutes for the transaction process to carry out. Payment methods with cryptocurrencies are now made with a high rate of accuracy and efficiency thanks to technological innovation and maturation of the industry.

Some Well-Known Crypto Credit/debit cards

Usage of crypto-based credit cards have become a new normal, especially during the pandemic year. Undoubtedly, it still takes thorough research and analysis to discover the platform that works in the best possible way.

Below are some well-known crypto credit and debit cards and comprises user’s and business’s credibility.

Crypto.com MCO Visa Card

The Hong-Kong based company Crypto.com offers the most famous crypto card solutions with the MCO Visa Card. Users can make payments using cryptocurrencies. The only aspect that makes it different from other platforms is that it does not emphasize the fact that cardholders need to convert the digital asset’s value into fiat when funding the card. Another advantageous point of Crypto.com is that it offers its cards in many jurisdictions around the globe, such as the EU, Australia, the UK, the US, Singapore, Vietnam, Hong Kong, Thailand, Australia, Philippines, South Korea, New Zealand, and the company is still planning to expand.

Wirex Visa Card

Wirex is another great option for cryptocurrency enthusiasts and it has been operating since 2014 from the UK. Yes, you read it right. It is one of the oldest companies that offers crypto credit cards. The company products are the best solution for those who travel often. The card supports 18 different cryptocurrencies and other traditional currencies. Thankfully Wirex does not charge hefty exchange fees and high conversion rates when you are not present in your own country. Hence Wirex is the best solution as it provides efficient security services that are mandatory during the transaction process.

Coinbase Card

In 2019, the extraordinary option called Coinbase cards was launched in Europe. It offers nine types of different crypto assets, which include Ripple(XRP), Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Lumens (XLM), Basic Attention Tokens (BAT), and Bitcoin Cash (BCH). Coinbase users can transfer cryptocurrencies directly from the exchange’s wallet. Coinbase offers an ATM withdrawal limit of only $200 per month. Hence Coinbase cards are a great option as it comes from trusted and regulated exchanges that have worked incredibly for years. It also offers several other features and is associated with the rest of Coinbase.

Visa Has Leveled Up Its Payment Network

Earning Bitcoins is not as difficult as it seems to be due to technological advancements that are leading us towards an unpredictable future. While there exist credit cards such as Cincase and Fold that offer Bitcoin cards, Bitcoin Reward credit card is another payment option that is evolving these days. It rewards its customers with cryptocurrencies instead of miles or points. BlockFi, Visa, and cryptocurrency financial tech company have limited the Bitcoin Reward credit card to all US residents, except for New Yorkers.

Blockchain technology and digital assets are going to play the most crucial role in Visa’s future. It is stated by Visa’s CEO Alfred Kelly that the card scheme is preparing its payment network to handle a full range of cryptocurrency assets. Visa is focusing on stablecoins in the upcoming future that can be handled as a globally accepted means of exchange including central bank digital currencies and bank-issued coins. Visa published a technical paper in December in which it has explained a novel approach for point-to-point payments between two devices, proclaiming it as a means for central banks to replicate the physical exchange of cash utilizing digital currencies.

Final words

A remarkable range of products is provided for crypto credit and debit cards which is incredible undoubtedly. There are numerous platforms that offer cards and among them, there exist some credit and debit cards that are time-worthy and trustworthy. Payment giants such as PayPal, MasterCard, and Visa are developing a rocking relationship with evolving digital currencies such as Bitcoin.

Digital currencies can potentially expand the digital payment sector and make it accessible to numerous people. The way Mastercards and credit cards are acquiring progress is providing a bridge between digital currencies and the existing global network. Security is the biggest concern for anyone while choosing a crypto credit or debit card, but thanks to the technological advancements in the crypto industry, fraudulent activities can be easily deterred.

Why Cryptocurrency Massive Energy Consumption Is Extravagant?

Do you know that bitcoin mining consumes around 128.77 terawatt-hours(TWh) a year? And is it likely to fall unless the value of currency collapses? Mining for cryptocurrency consumes a massive amount of power with heavy computers and machines, leaving a destructive impact all over the globe.

Mining is the process that involves transaction verification on the blockchain without relying on a central authority. Mining computers thrive on solving complex problems, and those computations require a massive amount of energy. There is a reward with newly mined coins and transaction fees once bitcoin miners solve this problem.

According to Cambridge University, bitcoin is presently representing 0.59% of the total global energy consumption. Digiconomist estimates that network energy consumption is hitting the figure of 82.026, which is, according to the site, comparable to Chile’s energy consumption. Since the beginning of 2020, Bitcoin energy consumption has surged up to 80% amongst an immense evolution in digital currencies.

Let’s have a deep insight into enormous energy consumption and its adverse impact on environmental sustainability.

Massive Electricity Consumption

Cambridge university suggested that bitcoin mining consumes more electricity as compared to the electricity consumption in Argentina. According to online tools, bitcoin electricity energy consumption is more than Argentina, i.e. 121TWh, the United Arab Emirates, the Netherlands, i.e. 108.8 TWh, and presently creeping up to Norway, i.e. 122.20 TWh.

Specialized computers are connected to cryptocurrency networks to mine. Their main job is the verification of transactions that send or receive bitcoins. This process includes solving complex problems, providing an obstacle for the assurance of combating fraudulent activities. Moreover, critics claim that tesla’s decision to invest a hefty amount in bitcoin. This week, the currency value hit the figure of $48,000, and according to tesla’s announcement, it has brought up to $1.5bn bitcoin and plans to accept it as a payment method in the upcoming years.

According to the 3rd global crypto-asset benchmark study, 28% of the total energy consumed by crypto-mining come from renewable resources. People often develop an interconnection with a massive number of miners to the network to gain immense profits. That utilizes an unexpected amount of electricity because computers are more or less continuously working to solve puzzles. It is possible to estimate how much electricity is being consumed at a time by considering energy demand for the bitcoin network and the average electricity price per kilowatt hour ($0.05).

What Bitcoin Mining Experts Have To Say?

Let’s have a deep insight into what bitcoin mining experts have to say about the alarming bitcoin mining energy consumption, which is currently progressing by leaps and bounds.

#1 Dan Held

The head of growth at crypto exchange Kraken, Dan Held, proclaims that the bitcoin network has been unjustifiably aimed by those claiming that bitcoin is taking its energy consumption irrationally.

Dan Held declared that:

“What it really boils down to when people argue that they don’t like bitcoin energy consumption is they don’t actually like bitcoin. People who are not in favour of cryptocurrencies anticipate that bitcoin mining energy consumption is wasteful.”

Dan Held emphasizes the fact that everything in this world requires energy consumption, and with technological advancements, the amount of energy required to power that technology is facing immense growth in the near future. Almost all the things in our lives consume energy. Claiming that one utilization source of energy is less wasteful than others is absolutely subjective as all utilizations have paid market rates to use that energy.

#2 Thillainathan

Thillainathan told business insiders that more energy consumption is required as the bitcoin network grows and simultaneously the profitability of mining increases. As an operator of mines, he affirms that minors should take environmental enigma under consideration during the mining process as energy consumption can adversely impact. He expects that bitcoin mining is beneficial as bitcoin prices surge in the market, and more miners should consider utilising renewable energy resources with this upcoming revolution.

He claimed in front of Insider that:

“Being a strong believer of bitcoin, it is an efficient way to store wealth but being an infrastructure provider, it is a dire need that we are required to become as environmentally friendly as possible.”

Thillainathan stated that the energy utilised during mining is called “dirty energy”, and unfortunately, the energy is not sustainable in the longer run. He professes that one day the government will crackdown on the utilization of coal plants.

#3 Mason Jappa

The CEO of blockchain solutions, Mason Jappa, who is also working as an operator of some of the largest mining rigs in the United States, affirms that bitcoin miners are financially incentivized for the operation on the cheapest possible electricity, which often concludes that they utilize energy that would have become useless.

Mason Jappa tweeted that,

“Bitcoin mining enhances energy efficiency and simultaneously reduces kWh energy rates for the populous through curtailment agreements, ceasing energy consumption during peak hours, aims at renewable energy, improves energy technology, and reduces natural gas flaring. ”

Jappa claims that US mechanisms are powered by the process which is called “gas-flare recapturing”. A chunk of gas is flamed out in the air when natural gas is mined. Bitcoin miners prevent that to release into the air and capture that flare for energy utilization.

Environmental Enigma

Environmental impact is thriving in parallel to bitcoin’s emergence and prominence. There would be no doubt in saying that crypto mining requires an enormous amount of energy. According to the latest data analysis by Cambridge bitcoin energy consumption (CNBC), this energy consumption might alarm Treasury Secretary Janet Yellen.

Yellen said that:

“It is the most incompetent method of carrying out transactions, and the amount of energy consumes during the mining process is staggering.”

Also, CAGF explained that:

“The more machines operate for mining, the more there is a possibility to solve complex problems. However, more operating machines mean more energy consumption which raises the question of miners’ cost. ”

CCAF affirms that they do not have enough data that backs the determination of crypto solution carbon footprint. Hence the major concern is growing bitcoin mining energy consumption and the threats that it is imposing to United Nations Sustainable Development Goals in the upcoming years. Also, it is a major concern for encountering the climate crisis.

Australian Crypto Market Tanks on the Arrival of Bitcoin and Ethereum EFTs

Australia’s digital currency exchanges began trading funds on Thursday amid a breakdown in the digital tokens. With the inauguration of this trading activity, ETFS 21Shares Ethereum ETFs, ETFs 21Shares Bitcoin ETF, and Cosmos asset management exchange debuted on a local cryptocurrency exchange called Cboe Global Markets Inc.

However, the ETF portfolios will be directly invested in crypto coins, while the Cosmos will be investing in the Purpose Bitcoin ETF, a Toronto-listed fund with digital assets worth $1.1 billion. Additionally, the funds are available publicly as the cryptocurrency ecosystem has experienced the significant success of a high-profile stablecoin called TerraUSD.

While due to the global movement of tightening financial regulations the market liquidity is also sapping. Whereas, stablecoins are the critical component in the cryptocurrency market, where the investors or traders hold their funds as they move their wealth in or out of other available virtual tokens. TerraUSD has a market value of $1 but the peg gas frayed casting a pall over the digital crypto money market for digital tokens.

Furthermore, the United States of America (USA) holds the maximum share of the cryptocurrency that is being listed publicly across the world. Whereas, Bitcoin’s market capitalization was around 42%, while Ethereum gained 51% of the total shares. However, keeping the fact in mind, that the cryptocurrency market is volatile wild price swings are very common in the digital currency industry as the latest downfalls made it hard for the investors and traders to get their wealth to recover.

“There are strong signs of capitulation in crypto this week, which often proceeds rebounds,” said Tony Sycamore, senior market analyst for City Index. “Presuming the recovery gains traction, it will help garner support for the newly listed ETF products along with the continuation of more widespread adoption.”

In addition to this, the total cryptocurrency trading volume of Australia’s inaugural cryptocurrency EFTs gained AU $1 million within two hours after going live. According to Bloomberg Intelligence analysts Rebecca Sin and James Seyffart, this trading activity was record-setting for the country’s EFTs market as its market capacity is only AU $152 billion as compared to the US $6.3 trillion markets.

“ETF Securities and Cosmos Asset Management’s cryptocurrency launch may go down in history books and put Australia’s ETF market in the running,” they wrote in a report. Additionally, according to the financial projections, it is expected that the Australian cryptocurrency industry will touch $1 trillion but by the end of 2022, the country may also become the prominent gateway to promote crypto EFTs in the Asia-Pacific side of the world.