These days, a lot of Bitcoin users are looking at various ways to protect themselves against price volatility. On paper, this sounds a lot easier than it is in reality, although some solutions are easily accessible such as one Bitcoin debit card that can protect users.
Prepaid BTC Debit Cards Against Volatility
When it comes to embracing Bitcoin and using the popular digital currency at any given opportunity, the options are slim pickings. One way to circumvent this problem is by obtaining a Bitcoin debit card, which lets users spend digital currency wherever credit card payments are accepted. In most countries, roughly eight in ten shops will accept card payments.
But there are more advantages to Bitcoin debit cards than most people realize, depending on the type of card. For most consumers, a prepaid card makes the most sense, as they will load a certain amount of bitcoin onto the card and spend it in their preferred denominated fiat currency. However, ensuring there are funds on the card at all times can be a bit annoying for some people.
This is why there are other companies issuing Bitcoin debit cards linked to a Bitcoin wallet directly. Rather than topping up the prepaid balance with Bitcoin and have it converted to fiat currency at that time, these cards will maintain the current value of Bitcoin at all times. Unfortunately, this will not protect users from price volatility, which can be both a blessing and a curse in one.
E-Coin is one of the most well-known prepaid Bitcoin debit card providers, and they offer them in three different major currency denominations. With customers in over 120 countries around the world, E-Coin has seen a lot of interest in their product, which effectively protects users against Bitcoin price volatility.
Every time an E-Coin user tops up their balance, the current Bitcoin market value will be used to convert the balance to EUR, USD, or GBP. Doing so will always guarantee that amount of fiat currency to be available on the card, regardless of whether or not the Bitcoin price declines or rises over time. Protection against volatility goes both ways, however, since users can’t make a profit on the Bitcoin price upswing either.
For some, the E-Coin Bitcoin debit card can be the perfect tool to protect funds against price volatility, and make Bitcoin more spendable wherever they go. Withdrawal fees are $2.5 USD for ATMs in the US and $3.5 USD for ATMs abroad as well as 0% to deposit funds for Bitcoin while a bank transfer top up is subject to a $3 USD fee, which is still relatively low compared to its competitors such as Xapo and Bit-X.
Not Perfect, But It Works
Users who funded their E-Coin Bitcoin debit card when the price was sitting at the $450 USD mark could breathe a sigh of relief knowing their value was intact once the price plummeted. At the same time, people who funded their card at the US$340 range can not reap the benefit from the [current] higher Bitcoin price. This medium is a double-edged sword, and the decision needs to be weighed carefully.
Some industry experts might argue that being part of Bitcoin means one has to ride the waves of price volatility. Witnessing a Bitcoin price crash is never fun, but seeing the value go up again over time certainly is. Prepaid Bitcoin debit cards protect users against both, whereas other types of cards let people enjoy the momentum, for better or for worse.
In the end, it all comes down to what the end user prefers. No one can both have the pie and eat it at the same time, and Bitcoin is no exception in that regard. Either people have to put up with the price swings, or they take the safer route with E-Coin. Or one can diversify the portfolio by spreading a part of the bitcoin balance in a normal wallet, and sending the rest off to a prepaid Bitcoin debit card.
Bitcoin gives the end user full financial control to do as they please, and the choices are laid out in front of them with no hidden strings attached. Volatility is important aspect of any financial tool, and Bitcoin is no different. Getting involved in Bitcoin is like marriage: one has to take the good with the bad, and make the most of it.
What are your thoughts on volatility protection with an E-Coin Bitcoin debit card? Are you riding the price waves? Let us know in the comments below!
Images courtesy of E-Coin, Shutterstock, Ibisworld