Bitcoin (BTC) is one of the most valuable cryptocurrencies on the market and some BTC holders can call themselves BTC millionaires or billionaires (as measured in U.S. Dollars).
But what can you do with it? What are the benefits of holding Bitcoin?
In this article we’ll explore the benefits of bitcoin. Let’s dive in and see how Bitcoin can help you learn passive interest income to increase your wealth, get loans against bitcoin to preserve your assets, spend bitcoin to keep the effects of inflation at bay.
Earn Passive Interest Income — Get Richer
The path to financial independence is one of earning passive income on assets you own. (Like getting rental income on a property you’ve bought.) The [Abra Interest Account](https://www.abra.com/earn/) pays daily compounded interest on many cryptocurrencies and USD stablecoin deposits.
As of this writing, these include Bitcoin (BTC), Bitcoin Cash (BCH), Cardano (ADA), Ethereum (ETH), Litecoin (LTC), Paxos (PAX), Stellar Lumens (XLM), Tether (USDT), TrueUSD (TUSD), and USD Coin (USDC).
Get Loans Against Bitcoin — Preserve Assets
When your expenditures exceed your income you could liquidate some assets to raise some spending money. A better way, that preserves your precious cryptocurrencies, is to borrow against them. The [Abra Borrow](https://www.abra.com/borrow/) program provides loans using your Bitcoin or Ethereum holdings as collateral. The interest rate on the loan is calculated based on the loan-to-value ratio (the more collateral, the lower the interest rate) and on the loan term (the shorter the loan, the lower the interest rate).
Spend Bitcoin — Keep Inflation at Bay
Because the total quantity of Bitcoin has been fixed from the beginning, it has great potential to be a store of value. This hedge against inflation — where a money supply is not limited — is a powerful selling point of Bitcoin. Rather than selling Bitcoin for a local fiat currency and then spending it, the following retailers accept Bitcoin. (Some accept it directly, others are available through a middle service. Some also generate loyalty rewards.)
NOTE: I have a section here that explains a littlebit more about the middle services, like Lolli, and a lot more retailers. So if you like this format I’ll add them in. (I had each with some descriptive prose, but the article got sooooo long.)
|Baskin Robbins||Spedn||ice cream|
|Godaddy||Lolli||domain name registrar|
|Home Depot||Flexa’s in-store checkout systems||hardware|
|Microsoft||directly||online Xbox store|
|Namecheap||directly||domain name registrar|
|Overstock||directly||household goods & services|
|Regal Cinemas||Spedn||movie house|
|Starbucks||Bakkt at the register||coffee, tea|
Bitcoin’s advantage is how widely it’s accepted as an alternate currency, and it how it can help your financial future by earning passive interest, use as collateral for loans, and be spent directly for many goods and services.
Watch our video series: introductions to cryptocurrencies, Money Talks, and more!
Abra supports 117 cryptocurrencies and counting.