Can Cryptocurrency Be Converted To Cash?

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The answer to this question is Yes. You can do a cash out of your cryptocurrency. Just like you can exchange dollars for pounds, you can exchange cryptocurrency for any other currency of your choice. The cryptocurrency economy is an economy of its own, with aspects similar to those of the traditional economy.

There are crypto loans, crypto wallets, and exchange services similar to traditional forex bureaus. You can use these to exchange your cryptocurrency for another currency of your choice.

There are many available cryptocurrency-to-cash exchange services.

 

How Can You Convert Your Cryptocurrency to Cash?

There are two alternatives through which you can do this. You can use a cryptocurrency exchange service or sell your cryptocurrency for cash to interested buyers.

a) Using a Cryptocurrency to Fiat Exchange Service.

To convert your crypto to cash using a cryptocurrency exchange service, you go through a series of steps.

The first step is to create a new wallet address with the exchange service of your choice.

Then you send your Bitcoin (cryptocurrency) from your personal wallet to this new address.

Thirdly, choose the currency you want your cryptocurrency to be converted into, for example U.S. dollars.

You then select where you would love to receive your converted cash for example your bank account.

Enter the details as prompted. The transaction will be completed in the time the service takes to complete transactions.

The most popular crypto to fiat exchange services in North America are Coinbase and Gemini.

Depending on the requirements of the service provider, you will be required to provide verification on signing up for the service for example a Social Security Number or your picture while holding your ID.

Then you can link your bank account so as to transfer your cash out directly to your bank account.

 

b) Selling to interested cryptocurrency buyers.

The other way to convert your cryptocurrency to cash is by finding interested cryptocurrency buyers.

You can use this peer-to-peer exchange by selling your crypto to friends and family.

You can schedule and meet in person with your buyer, make the cryptocurrency transfer to their wallet after which they hand you the cash equivalent.

This is just a simple barter trade system. You can use an online cryptocurrency calculator to calculate the value of your cryptocurrency amount in your desired currency.

Then you make an equivalence exchange with the other party.

The other option in this exchange alternative is using an online directory and searching for interested buyers online.

Depending on the options available, you can choose to receive your converted cash through your bank or any other available alternative means.

c) Using Crypto Visa cards or Mastercards

You may not need to convert your cryptocurrency to cash right away. You can alternatively store your cryptocurrency on debit cards and spend your money where these cards are accepted as payment options. An example of a crypto visa card is crypto.com

 

Is Cryptocurrency Money?

Many people are still perplexed by the question of whether cryptocurrency is money. Can cryptocurrency be used and more importantly, considered as money. What is the extent of its validity in transactions? Currently many businesses are accepting payments using cryptocurrency.

Governments around the world are coming up with and powering their own cryptocurrency. Cryptocurrency is causing a revolution that is disrupting the current traditional economy and powering a shift to a more decentralised economy.

 

To answer the question of whether or not cryptocurrency is money, we need to understand what money is; its characteristics.

From here we can make our inference of whether cryptocurrency qualifies.

Money is a medium used in representing the value of something; a commodity or service. Money is a medium one uses in acquiring what they want, by giving up their money for what they want. Over years, money has taken on different forms; wheat, shells, paper, coins and many others.

In this digital era, we have seen the introduction of digital money—cryptocurrency.

Cryptocurrency is a form of money, just like any other before. It has value as set by the algorithm used in making it and it can be used in transactions.

 

The Revolution of Money.

Money has revolutionised over generations. In the past, money has changed form from bulky physical objects like salt to paper and coins which derive their value from government fiat and now virtual cryptocurrency based on algorithms.

Every era has seen the use of valuable material in transactional exchanges. The digital era has brought with it the digitisation of life.

For most physical aspects, there exists a digital equivalent. There are digital zoom meetings that can be an alternative for physical meetings.

Online banks can work as alternatives for structural establishment banks. Similarly, digital money is an alternative for and is being pushed to replace tangible money as the decentralised monetary system replaces the traditional centralised economy.

 

Centralised Versus Decentralised Economy.

A centralised monetary system is based on the supremacy of a central entity which mediates transactions between people.

A centralised monetary system is associated with challenges that comes with supremacy.

These are corruption, mismanagement and issues in control.

The saying “absolute power corrupts absolutely” demonstrates this phenomenon. The centralised system of possession of control over the value of money by a supreme entity presents a risk of misappropriation of this power.

Cryptocurrency presents a solution to this challenge, at least in large part, through decentralisation. There is no controlling entity for transactions in this system.

 

Why is Cryptocurrency System Better Than the Traditional Centralised Economy?

a) Low risk of disruption.

Disruption is the halting of a system as a result of an external occurrence or design.

Cryptocurrency has a low risk of disruption. The only way to shut down this system is to shut down the internet, which is practically impossible.

The internet is built on a steady progress of technological advancements that have stood the test of time.

The centralised monetary system suffers the manipulative control of central authorities, which can decide to cause inflation or deflation by controlling the amount of money in supply.

The supreme entity can be shut down the system because the value of money stems from fiats from authority.

 

b) Transferability convenience

Cryptocurrencies are portable. You don’t need to physically carry them in bulk. This saves you the anxiety associated with risking to carry large sums of physical money in cash.

When transacting with cryptocurrency, all you need is a stable internet connection.

However, the downside of this is that the system, unless well-guarded, is susceptible to computational attacks on the system by digital thieves.

 

c) Disinflation

Cryptocurrencies have a fixed amount that can be minted per unit. This means that cryptocurrency is disinflationary. It’s supply cannot flood the market to cause inflation.

Over the long run, cryptocurrency has the power to cause deflation in the prices of goods and services. It has power of stability as its amount can remain stationary for a long time.

 

d) Independence

Gold and silver are assets whose value cannot be tampered with by any central authority. It has a stable inherent value.

On the contrary, currencies based on government fiat are relatively unstable. They can be manipulated with economic tools of supply and demand.

By reducing or increasing the amount of money in circulation, governments can control economies.

The inherent value of gold is fixed. Similarly, cryptocurrency is relatively stable because it is founded in a decentralised system and only a certain amount can be minted at a particular time.

 

e) Added value

The value of an asset is measured according to the purposes it can be applied unto. The more the purposes, the more valuable the asset is.

An expanse of land, for example is in one way valued based on the number of houses that can be built on it.

Cryptocurrency can be applied to a number of uses which include usage as currency, Blockchain technology can be used for record keeping and contract enforcement.

Cryptocurrency is safe from faking. Security is built into the algorithm to maintain integrity.

At least for now, it is relatively secure. The Blockchain system is transparent and ledgers cannot be easily changed.

In comparison, the current physical money can be faked. There are many fake notes in circulation.

Records in a bank can be manipulated to exhibit a certain desired result. On the other hand, the Blockchain cannot easily be manipulated.

 

f) Difficulty in achieving manipulative control.

To achieve a large measure of control on the network would require someone having the worth of many billions of dollars in their possession on the network which is practically impossible. Additionally, on the Blockchain network, to have supreme control, one must have control over many nodes on the network which is also next to impossible.

Cryptocurrency is relatively safe from being controlled. There is no controlling authority that can make cryptocurrency unstable because it is under the decentralised monetary system.

With exchange services, there is a chance of fraud.

You will need to make some research before you select a service to use.

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