Lots of people chat and speculate regarding whether crypto will change how people spend. In fact, it already has changed this for a lot of people!
Nobody can deny that decentralized currency could transform the financial landscape (even more than it already has). But a big question that looms over all the chatter is: Will crypto actually change the way people make money?
There have been some high-profile examples of crypto changing the world. Some sports players are even asking for their salaries to be paid in crypto, believing that they’ll be better off in the future using cryptocurrencies.
Potential Ways to Earn
Cryptocurrency is a digital asset. And like any asset, it has opened up fresh ways for people to potentially earn. Methods can potentially be used for people to generate passive income with crypto, as they use existing assets to make more or to lend to others. There are numerous ways to potentially try to do this and it depends on a lot of factors whether it is successful or not or what rewards it can provide – this isn’t earning in the form of a job.
Some have turned to mining, where powerful computers solve complex mathematical puzzles to verify transactions on the blockchain, a process rewarded with crypto coins. It’s not as easy as it sounds and mining requires a lot of electricity and computing power. It means significant investment upfront. However, those who managed to get in early for cryptos like Bitcoin would probably recommend crypto mining.
Then there’s trading. People have traded stocks and other assets for years, but crypto trading is different. Markets never sleep. Crypto trading happens 24/7.
Prices can swing within hours, which creates opportunities for profit but only if somebody gets it right. Those who are willing to learn the ropes may be able to turn crypto into a way to earn. This is not something that is flying under the radar, even a member of parliament has used cryptocurrency to receive their salary so it proves it can be used in daily life.
Cryptocurrency Jobs
The explosion of the crypto market has created demand for a whole new workforce. Developers who understand blockchain technology are highly sought after as are experts in crypto security and other fields.
Lots of the talk has been about jobs being replaced by crypto but there’s a whole industry that may need a workforce as it grows. People who can write smart contracts – programs that automatically execute terms of an agreement when conditions are met – have found themselves in a niche that is suddenly big.
What’s interesting is that these jobs often come with remote working styles allowing people to work from anywhere. This shift has been empowering, especially for freelancers and those who prefer a non-traditional work setup. Crypto has enabled them to carve out new income streams without the constraints of a typical office job.
Digital Real Estate
No, we’re not talking about buying and selling homes – digital real estate might sound like a strange concept, but it is becoming a reality in the metaverse – the emerging digital universe where people can own virtual goods. Some are buying plots in digital worlds trying their hand at building them up and even selling them at a profit.
Others are creating and trading NFTs – unique digital items that appeal to collectors – there have been some truly huge NFTs out there and some frankly unusual NFTs, too.
NFTs have opened the door for creators to monetize their work in ways that were impossible before. Musicians and artists may their creations as NFTs giving them a new way to earn money directly from their fans without going through traditional gatekeepers like record labels or publishers. Making money from some areas of music like streaming is becoming tricky and some artists are looking for new ways to do things.
Defi in the Future
Decentralized finance (Defi) is a way for people to adopt crypto or even potentially make money. Defi’s main role is to cut out the middlemen and aims to cut out these intermediaries. People can lend to other people and potentially earn interest directly from each other, using smart contracts to handle transactions.
This is creating another avenue for income. Instead of earning a smaller interest rate on a savings account, individuals may be able to earn higher rates through lending their crypto assets on DeFi platforms. Of course, there is a risk to this too and it should be noted.
Conclusion
Some people think cryptocurrency will impact the way all of us earn. Decentralized finance options could be the way forward in a lot of different scenarios and some people would already rather get their salary in Bitcoin or other cryptocurrencies. Perhaps this will become a more mainstream option in the coming years as people realize the ways to try to make money using the currencies out there and blockchain technology.