Eleven years ago, on May 22, 2010, Bitcoin was first used as a means of exchange in an everyday transaction. 10,000 bitcoins were paid for two large Papa John’s pizzas. Although this transaction would value the pizza at $384 million USD dollars at today’s exchange rate, the value in 2010 was a more reasonable $41 USD.
Since this important day, Bitcoin and other virtual currencies have been used in countless other transactions. From office supplies to groceries and haircuts to Tesla (prior to mid-May), virtual currency has increased in utility as it becomes more mainstream.
Using Crypto In Fund Transfers
Canada attracts immigrants, seasonal migrant workers, and refugees. These groups of people come to Canada often to perform the jobs that employers have difficulty filling with Canadian workers, and then they send the majority of their earnings home to support their families abroad. Sending funds abroad is often expensive and challenging for both the sender and the receiver of these funds.
These fund transfers are often low in value and high in frequency, with senders typically visiting an exchange every payday to send $100 to $250 to their international families. These weekly payments can cost between $30 to $55 to conduct through a big bank, while currency companies can often offer these services at a lower cost (Currency Converters charges $15 per payment). However, even at $15 per payment, the sender is spending almost $800 a year on sending funds back to their family. Additionally, there can be fees at the receiving end of these transactions, and the banking system can take anywhere from three to seven days to deliver the funds to the final beneficiary. There is an opportunity for cryptocurrency to help more money land in the hands of the families who need it most.
Smartphones are often more accessible in developing countries than banks or bank accounts, and cryptocurrency transactions only require the use of either a computer or smartphone. Conducting these transactions with virtual currency could eliminate both fees and delays.
If Papa John’s can accept Bitcoin for pizza, there’s hope that cryptocurrency can help advance developing nations. Our team at Currency Converters is always here to answer your questions, contact us anytime.