Finding a perfect Christmas gift can be daunting, especially when you are unsure what ‘perfect’ looks like. It’s easy to think you will get a better gift if you spend more. However, research has shown that spending more does not always guarantee a well-received gift.
Bitcoin can help. It is one of the fastest ways to transfer value anywhere around the world. Gifting someone a Bitcoin gives them the freedom to choose whatever they want. And it is no longer just a means of payment or an investment instrument. People have started using Bitcoin as a hedge against inflation, a stable store of value, and a gift for their loved ones.
According to a recent report from Magnify, about two-thirds of Americans (65%) want investments as holiday gifts, with cryptocurrency and individual stocks topping their wish lists. And why not? If only your grandfather bought you Bitcoins worth $10 instead of that sugary candy every year on Christmas for the last five years, it would be worth $750 (1,500% gain) today.
Bitcoin can be a perfect gift for your loved ones this holiday season. In this blog, we will learn why you should consider gifting Bitcoin, how to share it securely, and its tax implications. If that sounds exciting, let’s get going.
It’s time to bid adieu to those boring and expensive Christmas gifts and embrace Bitcoin. Here are a few reasons you should consider Bitcoin as a Christmas gift:
Bitcoin is predicted to reach a 10% adoption rate worldwide by 2030 — according to a report by Blockware Solutions. Their research shows that post 2030, Bitcoin will grow parabolically, thereby reaching 80% of the population by 2050.
Considering that there will only be 21 million Bitcoins to ever exist, the price of a Bitcoin is going to rise in the coming years. Gifting just one Bitcoin or a fraction of it today can make your loved ones wealthy in the long run.
You can buy and send Bitcoins anywhere, anytime, in just a few taps. No need to wait through long checkout queues or pay hefty packaging charges.
Unlike trendy gifts and hot items, Bitcoin never gets out of stock. It is always accessible and can be bought or transferred anywhere, anytime.
Bitcoin is significantly more divisible than fiat currencies. One Bitcoin can be divided up to eight decimal places. The smallest unit of Bitcoin is 0.00000001 BTC (0.00037 USD). This means you can gift someone anything from a dollar to a million bucks.
Delivering gifts to a different country can be very expensive. On the contrary, you can send Bitcoins to any part of the world in real time for a fraction of the cost.
That’s not all.
Bitcoin also promotes financial inclusivity by breaking the barriers to entry. You may need a sound credit score to get a bank account, but when it comes to Bitcoin, all you need is a Bitcoin wallet and access to the internet to participate in global trade or send/receive Bitcoins from any part of the world.
Since its inception, Bitcoin’s value has grown by 11,189.63% — making it one of the best investment instruments. The $10 you gift today can be $100 in just a few months/years.
Giant corporations like Microsoft, Etsy, NewEgg, and many others have also started accepting Bitcoin as a payment method. That’s not all; users can now exchange their Bitcoins for gift cards and coupons from over 3500 brands in 186 countries via platforms like Bitrefill.
If you are new to the Bitcoin ecosystem, sending Bitcoins as a gift may seem tricky. But really, it’s not. The entire process is straightforward and transparent. Here are a few of the most popular ways of gifting Bitcoins:
Bitcoin gift cards are the easiest means to give Bitcoins as a present to your loved ones. Bitcoin gift cards work just like a normal gift card. You can buy it from a website that offers prepaid Bitcoin gift cards. Compare them based on their reviews, features, and price. Buy from a website that looks trustworthy and offers what you want. Once purchased, you can send the gift card to the recipient via email or social media. They can redeem the card and encash the Bitcoins to their account.
Paper wallets are not the safest means to store Bitcoins. That’s because if you lose the keys, all your Bitcoins will be lost. Theoretically, to create a paper wallet, you have to write your private and public keys on paper by hand. Alternatively, you can also use a website like www.bitaddress.org to create and print a paper wallet.
Once your paper wallet is ready, it’s time to load Bitcoins into it. To do so, simply scan the wallet QR from your existing Bitcoin wallet and send as many Bitcoins as you want. Once added, those Bitcoins will remain in the paper wallet unless the recipient uses them.
Hardware wallets are specialized USB drives developed for securely storing Bitcoins. They are handy, waterproof, secure, and can protect your private keys from hackers. Hardware wallets have multiple layers of encryption, are resistant to physical damage, and can be recovered if lost or stolen.
Depending on their features, hardware wallets can cost anywhere from $69 to $300. You can load Bitcoin onto a hardware wallet via a dedicated app from its manufacturer. Once added, Bitcoins will be securely stored in the wallet, which can be gifted to your friends and family.
While Bitcoin is a virtual currency, you can create a physical coin with private keys printed on them. This type of gift will stand out as it will look fancier than other alternatives. However, remember that minting a personalized Bitcoin can be tricky and will cost you significant money.
Physical coins may look fancy, but they are not as secure as other storage methods. To ensure your keys remain secure, it’s crucial to transfer them to a more secure space and destroy the coin such that the private key is no longer visible.
If your recipient already has a crypto wallet, you can send Bitcoins directly via the Speed Wallet. Our wallet supports on-chain and Lightning Network transactions and levies 0 transaction fees. Moreover, the app is available for Android and iOS-based handsets. Anyone around the world can download Speed Wallet for free from the Google Play store and Apple App Store.
Getting started with Speed is easy, too. All you need is a valid email address to start transacting via Speed. Download Speed Bitcoin Lightning Wallet today to experience blazing-fast transactions for free.
Several countries levy taxes on gifting Bitcoin and other cryptocurrencies. For instance, if you are gifting Bitcoin to anyone in the US, it can be taxed if the amount exceeds a certain limit. Moreover, if the recipient sells the gifted Bitcoin within 12 months, their short-term capital gains will be taxed at ordinary income.
Learn more about tax implications on your Bitcoin investments via this comprehensive tax guide for crypto.
Bitcoin is certainly one of the most valuable gifts you can give to your loved ones. While there are so many ways you can gift Bitcoin, we would recommend you send it via an exchange or secure wallet like Speed. Primarily because sending Bitcoins via a wallet or exchange is easy, cost-effective, secure, and requires little to no technical expertise.
If you don’t have Speed Bitcoin Lightning Wallet yet, download it today. It is one of the most secure and user-friendly wallets available on the internet. The registration process is simple and easy, too. All you need is an email address to get started. Get Speed Wallet today and experience lightning-fast Bitcoin transfers at zero transaction fee.