Cryptocurrency is not a new type of payment method. Bitcoin first entered the market in 2009 and has since grown in popularity on an international level as a popular form of payment. It is not uncommon for businesses in various countries to include cryptocurrency methods such as Litecoin, Bitcoin, Bitcoin Cash, or Ripple for consumers to use when purchasing goods or services.
However, cryptocurrency is still considered mysterious and unsecured in the United States. The blockchain method is known for its anonymity and secure transactions, yet US residents are still cautious about using it to complete payments. Will crypto ever become a normal payment option in the US?
Too Much Scrutiny and Regulations
One major drawback for US businesses when it comes to cryptocurrency is the strict regulations that are in place. Crypto is legal in all 50 states, but rules and regulations are in place, with strict scrutiny on those who want to use the currency.
Another issue includes jurisdictions. Blockchain technology is secure and anonymous, so there is no way to pinpoint the location of a ledger. Transactions are private, and this poses a challenge based on jurisdiction. The elements of cryptocurrency transactions vary based on different jurisdictions and are subject to change. It is unclear which laws apply, and the overall use of crypto can become too confusing for the business owner to deal with.
In the United States, cryptocurrency is considered a property and currency. With this distinction, taxpayers in the US cannot use cryptocurrency as a currency for IRS purposes. Taxpayers must report transactions that involve crypto on tax returns, so the fair market value must be considered for each transaction.
This makes tax reporting very difficult for individuals who want to be diligent in their reporting. The US also classifies cryptocurrency as capital assets. Individual investors are responsible for paying capital gains taxes on crypto profits. The obligation is in place if crypto is purchased in the US or other countries. This also becomes confusing and time consuming, which leads business owners and individuals using cryptocurrency altogether.
Is iGaming the Solution?
There is one area that seems to work well for cryptocurrency, and that is the online casino industry. Online gaming sites often provide options for crypto payments, be it deposits or withdrawals. It is a good alternative for banking via iGamign sites, but players must be aware of the casino they visit. Is the site licensed and have a good reputation.
Casino sites that utilize cryptocurrency are often offshore sites and may not have the best reputation. You want to select online casinos with a solid reputation and are known for providing timely payments and a secure gaming environment.
Many players in the US use offshore gaming sites when located in states where online casino gaming is not a legal activity. The cryptocurrency payment method is a good solution for payment with such sites, but are you playing with a secure provider? This is the dilemma that gamers face when considering a site that includes crypto payments.
While cryptocurrency might work with online casino sites, the brand might not be worth the hassle. Players must open a crypto wallet and then purchase currency. The online casino site will then be connected to the wallet to make a payment for gaming. Any wins you earn can be converted back to crypto, but it becomes even more complicated if you want to cash out the crypto.
It seems the high-tech nature of cryptocurrency and how it works has led US citizens to avoid the currency for the most part. Some have tried to take advantage of cryptocurrency trading and have fared well, though the market can change anytime. If you are stuck with crypto that crashes, you can stand to lose quite a bit of money, similar to the stock market.
Overall, cryptocurrency is still considered a risk by Americans, and it does not seem likely that we will see the payment process added any time soon within local businesses. Until consumers are more aware of how cryptocurrency works and regulations are easier to understand, cryptocurrency will remain a payment option that people consider but shy away from.