In 2009, Satoshi Nakamoto designed Bitcoin as a transaction medium, allowing users to buy everyday things like coffee or an apartment with cryptocurrency. Its trajectory later veered more towards criminal activities due to its anonymity and lack of a definite regulatory framework back then. However, as bitcoin became prevalent mainstream, its use-case has shifted to purchasing more practical day-to-day services such as real estate and car deals.
How Bitcoin Became a Popular Online Option?
Bitcoin is a peer-to-peer payment system that allows folks to send each other payments without going through banks or financial institutions. The concept was introduced in 2008 by Satoshi Nakamoto, who published the original paper describing bitcoin. Since then, the value of bitcoins has skyrocketed from $0.01 per coin to nearly $20,000 today.
Bitcoin is a type of virtual currency that uses cryptography to control its creation and management, rather than relying on central authorities such as banks or governments. Unlike traditional currencies, bitcoin transactions take place between two parties directly, without the involvement of third party intermediaries.
What Can You Purchase Using Bitcoin?
Bitcoin has become a household name over the last couple years. So, what exactly does it mean to buy something using Bitcoin? How much does it cost? And where can I spend my coins?
Even though not every business or organization intends to introduce bitcoin as a payment option, a few top organizations have started taking the initiative. As more regulation comes into play and people get more comfortable using cryptocurrencies in general, we might see more players in the market.
Below, are the most active categories of items you can purchase with bitcoins;
Car Deals
If you’re in the market for a new car, you might be able to use Bitcoin to purchase one. Although most car dealerships and manufacturers don’t accept cryptocurrency payments, several companies, including AutoCoinCars, Bitcars, and Post Oak Motor Cars, do.
Bringing attention to such deals, Tesla CEO Elon Musk, in March 2021, announced on Twitter that the company would start accepting Bitcoin as payment. However, a few months later, he said the company was temporarily halting its bitcoin payments due to environmental concerns. However, at the moment, the company only accepts Dogecoin as its payment method.
Subscriptions
Besides buying physical goods, Bitcoin also allows users to pay for subscriptions. You can pay for services such as cloud storage, VPN, and streaming music through your Bitcoin.
While some subscription services will accept Bitcoin payments, others require a gift card to make a purchase. For instance, if you want a Netflix subscription, you’ll have to buy one through a gift card.
Today’s payment processors have many hidden costs regarding foreign currency conversion. With cryptocurrencies, users can conduct transactions in the same currency no matter where one is. Because of the liquid trading markets, traditional processors’ fees are significantly lower, making it suitable for a subscription payment.
Technology and E-commerce Products
Some companies that sell tech products, such as Newegg, Microsoft, and AT&T, accept bitcoin on their websites. However, Microsoft doesn’t allow advertisements related to cryptocurrencies on its Xbox gaming platform.
Among the first e-commerce platforms to accept bitcoin was Overstock. Other platforms that accept bitcoin include Amazon, eBay, and Rakuten. Some larger retailers, such as Shopify and Rakuten, also allow customers to buy products through cryptocurrency.
Other companies that have not yet accepted bitcoin include eBay and Amazon, the world’s largest online retailer. In 2014, Amazon said it had no plans to accept cryptocurrencies which is surprising since its platforms, such as Twitch, allow the use of bitcoin. Meanwhile, PayPal, a subsidiary of eBay, now allows customers to hold and buy cryptocurrencies.
Video Games
In the past, people would usually go to a physical store to purchase video games. These days, most gamers prefer to purchase them through online platforms. Because of this, more and more retailers are now accepting Bitcoin.
There are various ways to buy games using crypto, such as buying a gift card for the vendor of your choice or using a dedicated website that accepts payments using cryptocurrencies.
One of the most popular websites that accept Bitcoin for purchases of game keys is Joltfun. It allows users to buy keys for various games and add funds to their existing game vendor wallet. When you buy a key, you’ll receive an email with a link to the game’s activation page. Other websites such as Keys4Coins and Keys4Games also provide this service.
Insurance
Although the insurance industry has generally been cautious about using cryptocurrencies, it is starting to change. For instance, some providers now accept Bitcoin payments for various insurance products.
In April 2021, Swiss insurer Allianz announced that it would begin accepting payments in bitcoin for its various insurance products, excluding life insurance. Metromile, an agency that sells auto insurance, also accepts payments in bitcoin.
Clothing
Although there aren’t a lot of clothing retailers that accept Bitcoin payments, there are a few that do. Some of these include Norstrom Rack, Etsy, and Pacificsun.
Clothing retailers accept Bitcoin and process payments through various payment processors, such as BitPay. However, before you purchase from these companies, you’ll need to check the transaction details thoroughly.
Real Estate
One of the most common ways that bitcoin shows up in real estate transactions is through home listings. Many agents and sellers have been using this strategy to create more interest in their properties and attract more buyers. Some have even insisted on using all bitcoin. Notably, converting cryptocurrency gains into tangible assets is becoming more common for many users to preserve their incomes and balance their losses.
For example, Expedia.com, a massive travel site, has started accepting bitcoin as a payment method for its vacation rental listings. It is a growing trend among individuals to hold small amounts of digital currency to rent or lease a property.
Software and Web Services
Web developers and software companies have also started accepting Bitcoin as a payment method. Some biggest names in this industry, such as Microsoft, have begun accepting Bitcoin for their services and products.
How Does a Bitcoin Debit Card Work?
One of the easiest ways to make purchases using cryptocurrencies is using a debit card. These cards are available from various providers, such as Bitcoin and PayPal, and folks can use them to purchase at bitcoin ATMs.
Unlike regular debit cards, usually stored in a cash-like account, Bitcoin debit cards are used with cryptocurrencies such as bitcoin. They can be used at various stores and issued with preloaded digital currency. After you withdraw money from your card, the merchant receives it in fiat currency.
Final Thoughts
Since the inception of Bitcoin, its network has allowed people to store their hard-earned money and transact without going through traditional banking institutions. It may not be easy to purchase real estate, stocks, and precious metals with bitcoin but for a novice fintech currency, the flagship crypto seems to have cemented its place as a go-to medium online transactions. It’s about time people understood the limits of BTC in terms of online bitcoin purchases.
FAQs
What is Bitcoin?
Bitcoin is a decentralized digital currency which was invented by Satoshi Nakamoto in 2008. Bitcoins are created when someone solves a complicated mathematical problem using a powerful computer called “mining.” The first person who mines one block gets rewarded with 25 bitcoins. This reward decreases each year until all 21 million bitcoins will be mined. Because of the limited supply, bitcoins are worth more today than they were at launch. However, Bitcoin has also experienced volatility due to speculation about future demand for Bitcoin, and concerns about government regulation.
How can I buy Bitcoin?
Yes, you can purchase food using bitcoin. There are several websites like Bitrefill where you can top up mobile phones, tablets, and computers with bitcoins.
Can I buy a house with Bitcoin?
Yes, it is possible to purchase real estate properties using bitcoin. But first you need to find someone who accepts bitcoin. Also, you should be aware that many states have laws against purchasing real estate with virtual currency.
Is Bitcoin legal?
It depends on which region you reside in. Some countries prohibit transactions of cryptocurrencies, while others haven’t really banned it. The European Union ruled that cryptocurrencies like bitcoins and ethereum were legal forms of currency, saying it was working to develop rules for virtual currencies.
Sourced from crypto.news.
Written by Wayne Jones on 2022-08-17 01:00:00.
