Cryptocurrency as a means of payment
Before we delve into what you can buy with Bitcoin today, let’s see how crypto can be used as a means of payment. In the crypto space, users trust the underlying structure instead of a central issuer. Since most cryptocurrencies offer a payment infrastructure and a currency, the crypto market continues developing new possibilities in multiple areas. For instance, customers can opt to settle their bills with crypto at checkout, whether online, in-store, or in-app. They pay the seller an equal amount to the price tag of what they buy based on the market value at the transaction time. For smooth facilitation, a crypto payment service instantly converts the crypto payment into a preferred fiat currency. So far, the Bitcoin protocol has drawn the attention of the business sector, with many companies looking into how they can use the crypto asset as a payment model. Crypto beginners’ corner:
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Why do people want to pay with Bitcoin?
Initially, Bitcoin was designed and launched as a peer-to-peer (P2P) payment method. However, it has expanded its use cases based on its growing value and competition from other digital currencies. Today, many online merchants, brick-and-mortar stores, and service providers accept Bitcoin and other cryptocurrencies as payment.
Convenience – Bitcoin users can make transactions at any time provided they have an internet connection and a smartphone, laptop, or tablet.
Not controlled by a central authority – Fiat currency is controlled by central banks, which sometimes limits users from accessing their funds. Bitcoin has no third-party intervention.
User anonymity– Bitcoin users can conduct transactions securely without anyone tracking their details.
The Bitcoin P2P digital cash transfer system aims to solve the problem of double spending and eliminate the need for a central authority such as a central bank. Launched for the first time in 2009, Bitcoin has gained global recognition and adoption in such countries as El Salvador, which became the world’s first country to adopt Bitcoin as a legal tender laying the foundation for a new market of cryptocurrencies. And this brings the question, what can you buy with Bitcoin today? In the next section, we’ll explore some things consumers can buy with Bitcoin.
What can you buy with Bitcoin today?
Since its launch, Bitcoin has proven that it delivers real-world use cases. As mainstream companies adopt cryptocurrency, more ways are now available to spend Bitcoin and other digital currencies. From simple purchases like buying groceries to major expenses like buying a Lamborghini, you can use Bitcoin. Here are a few examples of what you can buy with Bitcoin:
1. Flight tickets
If you’re ready for your next trip, you can easily buy airline tickets with Bitcoin. Different booking services accept Bitcoin to pay for airline tickets. Similarly, private flight companies and luxury resorts have started accepting Bitcoin as a payment method. This has made it easier for travelers to book their tickets directly from their crypto wallets. A few other examples of crypto cards include Binance card, Wirex, Crypterium, BitPay, Nexo, and Coinbase card, among others. These cards are convenient, secure, and private. They allow users to spend their crypto without worrying about their personal details spilling out to third parties.
3. Luxury cars and watches
Bitcoin may be used to make purchases of luxury supercars such as Lamborghinis and Ferraris, as well as watches and jewelry from upscale brands like Tag Heuer, Hublot, Jacob & Co, amongst others. Several companies and dealerships are collaborating with various crypto-allied companies to facilitate payments using Bitcoin or other virtual currencies. For example, Ducati Indianapolis, Taabo Imports, and RM Sotheby’s are some of the dealerships where you can buy a luxury car with Bitcoin. Additionally, luxury goods marketplaces such as Bitdials, Gucci, De Louvois, and CryptoExchange allow consumers to pay for luxury goods with Bitcoin. Some of the listings on the sites include exotic sports cars, domain names, and fancy watches such as Breitling.
4. Etsy products
While Etsy (NASDAQ: ETSY) doesn’t directly accept crypto as a means of payment, some sellers on the handmade craft marketplace are crypto-friendly. Sellers willing to receive Bitcoin on Etsy can include “accept other payment methods” on their seller profiles to facilitate crypto payments at check-out. This allows buyers and sellers to swap crypto wallet details when paying for goods on this platform. The main requirement is that both the buyer and seller must be willing to transact with Bitcoin or another cryptocurrency that is accepted on the platform.
5. Smartphones
You can buy a new smartphone and pay with Bitcoin. Cell phones from Apple (NASDAQ: AAPL) such as the iPhone, Google, Samsung, and other companies are available for purchase using Bitcoin directly from Bitcoin-friendly dealers such as Overstock, AT&T, Microsoft, and Newegg. Customers can easily pay with Bitcoin at checkout.
6. Boats and yachts
Boats and yachts are among other high-end expenditures you can make. Companies such as Monachus Yachts, Capasecca Luxury Yacht, and Denison Yachting, among others, allow consumers to pay for a yacht or boat with Bitcoin. Meanwhile, companies like The Yacht Break, HELM, and Dubriani Dubai allow customers to pay for yacht trips with Bitcoin. Buying a yacht or boat with Bitcoin provides the same benefits as any other high-end purchases like real estate or luxury cars. The transaction is fast and involves lower fees; some merchants charge as low as 1% for yacht transactions made with Bitcoin.
7. Clothes and fashion accessories
Many established clothing retailers are beginning to accept crypto, making it easier for customers to pay for clothes and other fashion accessories with Bitcoin. Notable brands like American Eagle, H&M Express, Fanatics, and Columbia, among others, accept Bitcoin as a payment method. They allow customers to buy gift cards using crypto cards to buy clothes with Bitcoin. For instance, any clothing outlet that accepts MasterCard or Visa equally accepts crypto debit cards such as Nexo, Coinbase card, BitPay, or Wirex, making it even easier to shop with Bitcoin.
8. Computers, laptops, and PC accessories
Electronics, including computer accessories, laptops, gaming computers, and mining rigs, are some of the items you can buy with Bitcoin today. Marketplaces and stores have partnered with crypto-related companies to make it easy for consumers to pay for these goods with Bitcoin or other cryptocurrencies.
9. Food deliveries and restaurants
Popular restaurants allow customers to buy food with Bitcoin, saving them from carrying cash always and its challenges. If you have a crypto debit card, you’re even luckier because you can buy with Bitcoin at any restaurant that accepts MasterCard or Visa.
10. Furniture and home improvement
Give your home a facelift, make your office space fresh, and pay with Bitcoin. You can now use Bitcoin to buy furniture and home goods to improve your environment. This is possible by turning your Bitcoin or any other crypto into gift cards for popular furniture and home improvement stores. With Bitcoin, you can shop at notable furniture and home improvement stores such as Home Depot, Pottery Barn, World Market, Wayfair, and many others and settle your bill with crypto.
How to buy with Bitcoin?
Now that you have an idea of what to buy with Bitcoin, let’s see how you can use Bitcoin:
Crypto wallets
Important: You cannot own Bitcoin without a digital wallet. A crypto wallet is a secure digital account that stores your funds. Many crypto wallets are available with different features, rates, and fees. Crypto exchanges such as Binance, Binance alternatives, Trezor, Coinbase, and its alternatives offer discounts and incentives for using their wallets. Crypto exchanges also have mobile apps that allow users to interact safely with their funds. Once you have a Bitcoin wallet, you can pay directly from the wallet at any outlet that accepts Bitcoin. The mentioned crypto exchanges also allow you to convert Bitcoin into fiat currency and vice versa.
Crypto cards
Some marketplaces and retailers don’t accept Bitcoin directly. In such cases, you can use a crypto card to pay for goods and services. Bitcoin-enabled cards are similar to regular debit or credit cards, except that they are linked to your Bitcoin wallet. You can use these cards to buy goods and services online or offline, just the same way fiat currency works. The only difference is that you pay with Bitcoin instead of cash. However, the card automatically converts cryptocurrency into fiat currency. Remember to check the features, charges, and benefits before you sign up for a crypto card.
Revolut;Binance;Coinbase;
The crypto space is a vast field with all sorts of challenges. Some users may have ulterior motives like phishing and scamming. You should always transact with trusted names like PayPal, BitPay, Binance, or Coinbase. Note: Be extremely cautious to detect when a seller redirects you to an unfamiliar sketchy-looking site that you don’t trust. In that case, you should terminate the transaction before it goes through.
(+) Advantages of buying with Bitcoin
Bitcoin, like any other cryptocurrency, has its stronger points. Here are some of the advantages of paying with Bitcoin:
You remain anonymous or pseudonymous
Bitcoin offers a decentralized payment system where your information is not required. This implies that you can conduct your financial matters without anyone following you for various reasons. On the other hand, your wallet address can be used to trace you if you allow access to the information.
Bitcoin facilitates peer-to-peer transactions
When paying with Bitcoin directly from your wallet, there’s no third-party involved. Bitcoin allows you to send and receive it from anyone without involving a middleman.
Transactions attract lower fees
Bitcoin transactions attract lower fees than fiat transactions. This is because of cryptocurrency’s peer-to-peer nature, which cuts costs for all parties involved in a transaction.
Zero geographical limitations
Unlike fiat currency, Bitcoin allows you to send or receive payment from any part of the world. You only need to have a stable internet connection and a digital wallet. Besides, it’s available to anyone, unlike banks and credit facilities.
(-) Downsides of paying with Bitcoin
Crypto payments are digital, and they depend on the cryptocurrency network. Here are some of the disadvantages of buying with Bitcoin:
Increased transaction fees
While actual transactions attract lower fees, cryptocurrency network fees are higher. It keeps changing from time to time.
Crypto prices are volatile
Cryptocurrency prices are not stable. This can affect a transaction to the disadvantage of the buyer. For example, it’s possible for the price of Bitcoin to drop between the moment you purchase an item and the time the network confirms the transaction. In that case, you might not have sent enough to pay for your preferred item. Similarly, you could end up paying more than the actual cost if the price rises before the network approves the payment.
Bitcoin payments are irreversible
Crypto payments are irreversible once the transaction has been completed. It remains in the blockchain, and no one can reverse it. Only in very rare instances can a recipient voluntarily send back payment in another transaction. This situation presents a risk of loss.
Final thoughts
Bitcoin was initially designed as a P2P cash transfer system. Today, this use case stands out as more people embrace cryptocurrency to pay for goods and services. With Bitcoin, you can easily shop through your smartphone, laptop, or tablet. Importantly, many merchants have adopted cryptocurrency as a means of payment, which has increased Bitcoin adoption.
