Gone are the days when paying in fiat currency was the only medium to show generosity toward a service or a social media influencer. Instead, you can now tip in cryptocurrencies or tokens using crypto tipping platforms.
Today, there are multiple platforms that have started to initiate crypto tipping as a service. Platforms like Chaintip allow seamless tipping of Bitcoin Cash, which is supported over Reddit and Github.
Crypto tipping was part of Bitcoin’s culture in the early days; it was one of the earliest ways to spread adoption in chats and across social media platforms. Interest in Bitcoin tipping started to pick up again in 2021.
Crypto tipping is a fun way to spread adoption and support creators. It gives content creators more ways to make money online.
Twitter has been the latest adopter of crypto tipping; users can now send and receive tips in the form of Bitcoin and Ethereum. Depending on their region, users can connect third-party apps – including Cash App, Venmo, Bandcamp, Patreon, Chipper, Razorpay, GoFundMe, PicPay, and Wealthsimple Cash – to their Twitter bios and individual tweets to receive funds.
Another similar feature is Brave Browser, which will now allow users to tip websites, Twitter accounts, and content creators in Basic Attention Token (BAT) Rewards while using the browser. Tipping can also be set to recurring so automatic BAT payments can be made on a monthly basis.
Public interest continues to be one of the prominent challenges in the crypto tipping segment. The lack of people’s trust in sharing their wallet details with the platform makes it a matter of concern for its success.
The volatile nature of cryptocurrencies as a medium of exchange could be another barrier. For example, in 2010, a hungry man purchased two pizzas from Papa John's for 10,000 Bitcoin. At the time, this was equivalent to roughly $41. In 2021, this would be valued at over $400 million.
Direct and indirect exposure to the trend
Basic Attention Token (BAT)
Block Inc. (NYSE: SQ)
Grayscale Future of Finance (NYSEARCA: GFOF)