The landscape of finance is evolving. More retailers in the US are beginning to accept cryptocurrencies for payments, although customers often need to convert these coins to cash first. For example, shoppers at Walmart have to sell their Bitcoin or Ethereum through the Walmart OnePay mobile app before they can scan a barcode to complete their purchase, whether in-store or online.
Starbucks has been on board with Bitcoin and Ethereum since 2021 and employs a similar method through its SPEDN mobile app. However, it’s worth noting that, according to some sources, no retail outlets currently accept these currencies directly as payment.
“I haven’t noticed any of these stores actively promoting crypto payments. Not yet, anyway,” commented Brian Spinelli, co-chief information officer at Halbert Hargrove. “Walmart is working on integrating it into the OnePay app.”
That said, being able to convert crypto into cash when necessary is a significant advantage for many. I wonder, will people use it for everyday items like milk or just fancy drinks like frappuccinos? Utilizing cryptocurrency, even just when needed, could really change how we think about digital finance for both consumers and investors.
“Even in the US, plenty of individuals are unbanked. They might not engage with traditional banking, so this could simplify their transition to financial systems,” Spinelli mentioned. “If you don’t have a bank account but hold cryptocurrencies on your device… this opens up mainstream retailers to a customer base they might not have reached before.”
However, selling cryptocurrencies to cover expenses can hit you in the wallet if you think about it, as you might regret it later if Bitcoin continues to rise in value.
“Bitcoin should be viewed as a hedge against the decline of traditional currencies,” noted CK Zheng, co-founder and CIO at ZX Squared Capital.
Tax implications are also critical to keep in mind. The IRS views digital assets as property, which means any transaction can generate capital gains that must be reported. “There will likely be numerous scenarios of gains and losses leading to reportable trades,” Spinelli cautioned.
This is particularly true for many who might consider getting a tax accountant or financial advisor to help manage their investments.
Additionally, if you sell Bitcoin to buy something and later return it, you might receive cash but face a loss on your original investment.
Yet, if you’re weighing between accruing debt on a high-interest credit card or using a crypto store, it seems like avoiding that credit card debt might be the smarter choice.
Overall, the theory is that Bitcoin’s value will tend to increase over time, which could benefit investors. “Bitcoin essentially acts as a mix between a technology stock and a store of value similar to gold. Its volatility is primarily influenced by perceived risk and the dynamics of demand and supply,” Zheng explained. “As Bitcoin becomes more widely utilized as a currency, its volatility might decline.”
“It could stabilize with broader adoption—more use, more ownership,” Spinelli concurred. “It’s a highly volatile asset, and it still is. But the more people that embrace it, the better it will be for Bitcoin.”
