Should You Spend or Invest Your Crypto?

The popularity of cryptocurrency in Australia continues to rise as more businesses and financial institutions begin to recognise its value.

While it is still considered to be a volatile market, the opportunity for people to see significant returns on low investments has seen new cryptocurrencies emerge and enjoy serious backing.

Bitcoin is still the most popular option in the country, but consumers are now more likely than ever before to diversify their investment portfolios and take a risk with alternative cryptocurrencies.

However, it is important to remember that crypto is not just an investment opportunity. As a decentralised currency, it offers significant benefits over the use of fiat currencies, especially when conducting international transfers.

We take a look at some of the best options for spending crypto in Australia and also tackle the question of whether you should treat it more as an investment or spendable money.

Spending Cryptocurrency in Australia

Opportunities to spend cryptocurrencies used to be few and far between. Businesses that did accept it were considered somewhat of a novelty, but that is changing.

Businesses around the world have been finding it tougher and tougher to survive in challenging financial circumstances. By accepting as many different payment methods as possible, including cash, card, digital transfers, and crypto, businesses can enjoy a greater market share of consumers.

Crypto Casinos

One of the first industries to accept and adapt to the use of crypto was the global betting industry. Online casinos grew in tandem with crypto, making it a perfect relationship to blossom together.

Now, consumers will find a great selection of the best Australian Bitcoin casinos with experts like Johanna Gullberg reviewing and recommending the ones that offer security, variety, a high-quality gaming experience, and wonderful welcome bonuses.

Australian bettors can choose between traditional casino and sports betting markets, or explore some of the latest interactive slot games or dedicated crash games designed for the crypto market.

OTR Fuel and Convenience Stores

The OTR retail and fuel company became the global leader in crypto transaction acceptance in 2022 when they announced they would accept real-time in-store crypto payments for goods and fuel.

This is a huge step towards integrating crypto into daily use for Australians. While crypto has long offered online consumers a convenient way to carry out transactions, this groundbreaking new development helped put Australia on the crypto map worldwide.

Bills

Another way Australians can integrate the use of crypto into their daily life is by using it to pay household bills.

Many people who invest in crypto have the difficult choice of how much they can afford to invest and the level of liquid assets they need to enjoy a comfortable life.

Now, consumers have the option of using their crypto investments to pay a variety of essential bills that include phone, internet, water, council rates, gas, electricity, rent, insurance, and much more.

The BPAY electronic payment system allows consumers to make quick and easy payments and users can pay with a selection of cryptocurrencies including Bitcoin, Solana, Ethereum, Dogecoin, Avalanche, and USDC to name a few.

Rather than allowing money set aside for bills to sit in standard bank accounts stagnating, the opportunity to invest in cryptocurrencies that can rise in value over the course of a month can help Australians to enjoy greater freedom.

Of course, as with any investment, there are risks attached and crypto values can drop. It is essential that users ensure they have the funds to cover bills should things take a downturn in fortune.

Retail Crypto Shopping

Online shopping offers crypto owners one of the best opportunities to spend their digital assets. Most online retailers will offer traditional card and bank payments, as well as payment services like Apple Pay and PayPal. Many businesses are now beginning to accept some of the most popular cryptocurrencies as a way to appeal to more buyers.

All types of businesses accept crypto as a payment method including travel agencies, computer hardware and software suppliers, furniture stores, and clothes shops.

Restaurants, sports and leisure facilities, and online gaming operators also provide consumers with options to spend crypto.

Crypto Investment

Choosing to spend crypto rather than let it appreciate carries its own risks. For example, one of the first digital currency purchases was carried out in 2010 by Laszlo Hanyecz of Florida.

He purchased 2 pizzas from Papa Johns for 10,000 Bitcoin. At the time, this would have been roughly the same value as a cash payment, but as we now know, Hanyecz has the dubious title of purchasing the most expensive pizzas in history.

Had he kept hold of his Bitcoin and sold at its peak in March 2024, his crypto investment would have been worth a staggering US$730 million.

Of course, nobody knows the future and Hanyecz has taken things in his stride saying he is proud to have played his part in the evolution of crypto.

While this will serve as a sobering lesson to many, things could easily have gone the other way. Many crypto start-ups enjoy initial success and publicity but fail to capitalise.

Like the stock market, knowing when an asset is at its most valuable is key to any crypto investment. There have been many stories of crypto success over the years, but people have also lost a lot of money so all investors should take the time to judge their own portfolios and weigh them up against their financial needs.

Early investment in new crypto can be the best way to purchase it at its lowest value, and keeping an eye out for pre-sales and reviewing the crypto creator’s whitepaper and vision should help you make the right choice.

Conclusion

Investing in cryptocurrencies can be a bit of fun for some people, and serious business for others.

The increase in industries that accept digital assets including crypto gambling and retail is certainly helping, with more people recognising the industry as a genuine financial alternative to traditional payment methods, rather than a novelty.

Deciding whether to hold on to an investment or spend it will always be a personal choice and weighing up your individual needs and preferences should play a part in making the correct decision.