Trading and staking are the pillars of passive income, but are there other forms?

There are various ways to generate a passive income stream with cryptocurrencies that do not necessarily require technical skills or knowledge of complex trading dynamics. The blockchain technology enables this, and today, protocols are becoming mature enough to offer such services to the public, even to those less experienced.

Cashback, financial inclusion, alternatives to smartphone payments—these are all established possibilities in the crypto space that we'll explore in this brief overview. To provide a comprehensive view of the state of the art in the crypto world, we've interviewed some of the key players driving this innovation.

It's evident that the greatest impact of many of these transformations is seen in developing countries. Weak economies and limited opportunities to generate income through traditional financial systems find more effective use in the emerging crypto economy.

Market analysis identifies the increasing adoption of Bitcoin investments. A study published by Bitcoin Unchained, a financial services provider, shows that 55% of the 400 surveyed U.S. investors own Bitcoin. Furthermore, 34% of respondents believe that Bitcoin will outperform gold, the S&P 500, and fiat currency in 2024.

The official entry of BTC into traditional finance with the approval of spot ETFs in the U.S. market plays in favor of this increased recognition. Yet, adoption remains hindered by difficulties in accessing the BTC network, storing it, and using it for payments.

Crypto cashback as an alternative gateway to Bitcoin. In addition to token purchases in exchange for fiat or other cryptocurrencies, there's another way to acquire Bitcoin, or at least a fraction of it. Programs employing cashback in BTC are multiplying, allowing users to earn it as a percentage reward on their daily expenses.

One example is Lolli, a platform offering cashback on purchases of everyday goods or well-known brands like Adidas, Booking.com, and more. Through the platform, users earn Bitcoin rewards. The CEO and founder of the company, Alex Adelman, explained to Cryptonews the increasingly important role of Lolli in introducing people to Bitcoin without exposing them to any risk or initial investment.

Cryptocurrencies promote financial inclusion. Filipp Shubin, co-founder and CEO of Swoo Pay, elevates the discussion to a more significant and large-scale level. He explained to Cryptonews that crypto cashback programs can represent a gateway to facilitate financial inclusion in developing countries.

Africa and Southeast Asia are currently the most at-risk areas on the planet. Emerging economies must contend with large segments of the population entirely excluded from the banking network. Access to financial resources also passes through digital resources, and simplifying mobile payments in crypto is the new frontier to promote financial inclusion.

Shubin explained that with Swoo Pay, contactless transactions can be made via smartphones, a tool often much more accessible and convenient than cash where bank branches or ATMs do not exist. Swoo has partnered with Mastercard to offer its users loyalty rewards in the form of cryptocurrency, the native Swoo token.

Crypto cashback through prepaid cards. Ashish Khandelwal, founder of the Bangalore-based payment tech company Anq, told Cryptonews that the adoption of virtual resources is also accelerated by the use of prepaid cards, where cashback rewards in crypto are credited.

Considering the size of the Indian prepaid card market, the extent of this untapped market is well understood. This is demonstrated by the results of research conducted by the International Market Analysis Research and Consulting Group (IMARC Group). The prepaid card market in India reached $119 billion in 2022. It is projected to increase to $759.2 billion by 2028.

What hinders crypto adoption in emerging countries. Once again, the major obstacles limiting the use of cryptocurrencies as a payment tool or for loyalty reward distribution in the form of cashback are related to regulatory gaps and the persistent market volatility.

Khandelwal explained that "regulatory uncertainties and the complexity of managing virtual digital assets can intimidate both businesses and consumers, while concerns about the security and tax implications of virtual digital asset transactions represent additional challenges."

Posted Using InLeo Alpha