The Problem

For many people, especially those unfamiliar with Bitcoin, Ethereum and litany of crypto altcoins, there is a pervading misconception that they don’t count as “real” money. As a result of this, despite its rise in popularity and value, people remain divided about what cryptocurrency is, how it should be used, and what position it will hold in the future.

Part of the reason for this is because the real world functionality of cryptocurrencies is not as straightforward as traditional money. The defining feature of cryptocurrencies is that they all hold value in some way and are traded on the blockchain, while some are intended to be an alternative to fiat money, others have countless ways of adding utility to the blockchain. Debates over the future of cryptocurrencies by those who control the underlying blockchain mechanisms has led to ‘forks’ in the past, where currencies effectively split into two forms designed for different goals.

For cryptocurrencies that want to act as an alternative to existing currency, there is a huge issue preventing them from being regarded as ‘real’ money, and that is the big issue of how spendable it is. On the whole we can’t pay for goods and services anywhere near as easily in cryptocurrencies as we could in any other traditional currency. Even given their positions as the most well-known cryptocurrencies, you’d be hard-pressed to use Bitcoin or Ethereum to pay for a cup of coffee. Financially speaking, you’d be losing out significantly especially with micro-transactions like this due to the comparatively exorbitant transaction fees, fees that could potentially cost you 5 times more than the cup of coffee.

The Solution

Among the die-hard crypto-as-currency crowd, there is cause for optimism. Increased adoption in the mainstream has seen a surge in interest among people new to the space looking to spend their various tokens and coins in the real world. This has conveniently coincided with the arrival of Open Banking, which has allowed secure access to consumer’s information that was previously the purview of the traditional banks. This has spurred innovation in fintech firms at a time where many of these firms have noticed the potential of the crypto space.

With partnerships designed to remove barriers real world utility becoming increasingly commonplace, using cryptocurrency for payments will become considerably more intuitive and effortless which will be a key driver for further mainstream adoption, creating a positive feedback loop. With the array of financial products available to us today, it isn’t uncommon for people to have several bank accounts with a whole host of providers. As a result, there is a real demand for simplicity in the form of all-in-one products where users can access multiple accounts and services, particularly among younger generations who are coincidentally more clued into crypto. There are already several products using the all-in-one model on the market.

Both the Curve and (unrelated) Edge payment cards consolidate all your bank accounts and cards, and come with an accompanying mobile app where users can access further details. At the moment, this is limited to fiat payments but the technology to link such cards to crypto wallets is already out there, making such additions not just possible, but inevitable.

Here at Energi Mine we have partnered with FuzeX for just this reason. Their card was recently made available in the UK, and its technology offers users the chance to spend EnergiTokens (ETK) as well as other cryptocurrencies at any standard merchant without the caveat of high transaction costs. Apart from the crypto link, it isn’t too dissimilar to your typical debit or credit card. It is the same size and dimension and operates through an EMV chip. By making cryptocurrencies more accessible and easier to spend through all-in-one payments cards, they will become a real alternative to conventional currency, and creating something as seemingly innocuous as a crypto credit card is an important step to remove the stigma of “otherness” that still hovers around the sector at large.

It’s an exciting progression in crypto’s story and brings us significantly closer to mainstream adoption. In the bigger picture, this will undoubtedly have a positive effect on blockchain’s prominence. Cryptocurrencies have come a long way since its humble beginnings in 2009 (always worth remembering that Bitcoin was worth less than a dollar in 2010!) and the story is only going to get better and more interesting from here.

For more information about EnergiToken and its energy-saving reward scheme or to become a partner, please visit www.energitoken.com, follow on twitter at @EnergiMine or join the EnergiToken Telegram group.