Over the past several years, cryptocurrency has become an increasingly common way for consumers to buy and sell goods. It has also become a popular form of investment because of its constantly fluctuating value - we've seen huge jumps in the overall value of cryptocurrencies like Bitcoin. One of the latest trends in the crypto head movement is using cryptocurrency to buy major items like life insurance, which in the past would never have been acceptable. There are many pros and cons to using cryptocurrency to purchase life insurance - here's everything you need to know.
Cryptocurrencies are secure.
The biggest appeal of the cryptocurrency movement is that they are completely secure, so they lessen the likelihood of fraud happening when you make a purchase. The blockchain technology that is used in cryptocurrency encrypts every single purchase securely and anonymously. You can feel confident knowing that your money is safe from the threats you would worry about with your normal bank account, such as hacking and identity theft.
Cryptocurrencies can be managed digitally.
Cryptocurrencies are designed to be completely managed online, which makes them easy to use if you are technologically literate. Instead of having to go through a complicated online process to pay your life insurance company, all you need is the address of their 'wallet' to make a payment. Once you have that, you can just send the payment to them in a matter of minutes or even seconds, and everything can be done through your phone or computer.
Cryptocurrency has been fluctuating in value.
One reason you may want to hold off on using cryptocurrency to pay for your life insurance is because cryptocurrency has fluctuated widely in value over the past several years. This means that the amount your cryptocurrency is what could change drastically from day to day. When you use your cryptocurrency to pay for things, this can be problematic, because it makes it difficult to budget how much you need to spend. You also don't have much control over how much your Bitcoins or other cryptocurrencies are worth - you just need to watch the market and try to buy at times when values are relatively low. Although cryptocurrency values could potentially steady out in the next few years, this is still a major consideration.
Cryptocurrency isn't widely accepted yet.
Cryptocurrency also may not be the best choice to make monthly payments like life insurance because it isn't widely accepted, particularly among major companies. Your life insurance company may not yet accept cryptocurrency, which means that you would have to convert your cryptocurrency into US dollars or another more mainstream currency to be able to use them. This can be very inconvenient, and is a potential reason to hold off on using cryptocurrency for major purchases.
Although cryptocurrency is changing the market, it still has a long way to go before becoming completely mainstream. However, we can expect to see many changes over the next several years in the way Bitcoin and other currencies are handled. An increasing number of companies will be accepting cryptocurrency as payment, which means you will be able to use them to pay for major items such as life insurance.