In a situation of financial turbulence around the world, trust in traditional financial institutions is rapidly being lost. The main reasons here are: record levels of inflation, sanctions restrictions, arbitrariness of payment systems. As of June 2022, U.S. annual inflation reached 9.1%, breaking the November 1981 record, according to Bloomberg. All this is just the tip of the iceberg – there are many more reasons for dissatisfaction with the fiat monetary system. Many have now become interested in cryptocurrency as a real alternative, but is it possible now to live using only cryptocurrency?
Is it possible to earn exclusively within the crypto market?
Is it possible to earn a living working exclusively in the crypto-currency field? Certainly yes.
If you plan to make a living as a trader, then a lot will depend on your ability to choose a reliable trading platform and your ability to predict certain trends in the market. The crypto market is very different from the traditional one in its huge volatility, although even in the sanctions era, the dollar can fall or double in a few months. In any case, to trade on the crypto market, you need to be able to set up trading bots, understand what factors affect the market, and constantly be aware of events. The need for technical specialists and crypto evangelists in the crypto market is also great, so a good programmer or SMM is highly valued. Many are quite ready to even take a salary in cryptocurrency, although they often prefer stablecoins.
Is it possible to live using only cryptocurrency?
This largely depends on the country you live in, but in most cases the answer is no rather than yes. Even despite the fact that El Salvador has recognized Bitcoin as an official means of payment and despite the fact that there are many sites where you can purchase goods and services for a crypt, it is not yet possible to completely get rid of fiat. In most cases, you won’t be able to buy bread or fill up your car with cryptocurrencies. The blockchain infrastructure is not yet so widespread, and the barrier to entry remains too high.
Nevertheless, the situation can be changed for the better if there are more sites on the market, with the help of which it will be possible to cover household needs by paying with a crypt – to buy food, clothes, etc. Here, everything will depend on the activity of crypto enthusiasts – how much they will participate in the development and promotion of crypto marketplaces.
The legal aspect is more complicated, states and central banks are usually in no hurry to recognize the crypt as a legitimate means of payment, because they do not understand how to collect taxes. There are a number of circumstances that may change the current state of affairs:
The collapse of the national monetary policy – see the example of El Salvador. There, Bitcoin was recognized largely because the country’s economy was dysfunctional.
international isolation. Of course, before the recognition of cryptocurrencies in Russia as a means of payment, a lot needs to be done, but sanctions and disconnection from Western payment systems prompted Russian legislators to work towards the legalization of cryptocurrency trading.
Should you strangle the goose that lays the golden eggs? This is the source of taxes, after all. Finally, if the country has a cold climate and cheap electricity, then it is foolish not to take advantage of the situation.
Technically, it is already possible to realize the opportunity to live using only cryptocurrency. In practice, this is a matter of a favorable legal environment and a sufficient number of platforms ready to work with cryptocurrency – and here a lot of work remains to be done for both startups and local legislators.