Since its introduction on the financial market in the late 2000s, Bitcoin’s primary purpose has been to power daily transactions the same way as any other fiat currency. However, this hasn’t come to pass. Bitcoin became a store of value and a means to provide portfolios with a tool for diversification and a hedge against inflation events instead. Users turn to exchanges like Binance to buy Bitcoin for their list of holdings. Hodling is a well-known strategy during which investors store the tokens instead of selling them again. This allows them to create considerable value over time, which they can later use however they want.
However, that’s not all there is to it, and it’s actually possible to use cryptocurrencies for purchases as well. Although this use case is still not widespread, it’s highly probable that as digital money becomes more accessible to the general public, the coins will also be used to buy more things. So, how exactly should you proceed when you’re trying to buy something using Bitcoin? And what are the products that are available for purchase with digital money?
The basics
You can’t start performing Bitcoin purchases unless you own a wallet first. This device enables you to store, receive and send BTC. Since wallets come in different forms, you must do your research before settling on one of them. Software wallets are typically seen as more accessible since they can be swiftly added to your computer or even the smartphone. However, their ease of accessibility can also be problematic when it comes to security. Digital assets are highly attractive prizes for cybercriminals, and losing cryptocurrencies can be quite challenging since you might never see them again.
Physical devices, known as hardware wallets, are more secure and can hold a larger quantity of coins. Since they’re not connected to the internet, the likelihood of a hacker attack is significantly reduced. Acquiring Bitcoin is most accessible through a specialized exchange, of which there are several on the market. However, you should stick to the best-known, most popular options since they also offer the best security. You can also consider mining if you have the hardware you need.
Finding the vendors
Although cryptocurrencies are becoming more familiar to the general public, they’re still not as widely accepted as traditional currency. A lot of the reluctance the general public has towards cyber money comes from the volatility, which deters many from becoming investors in the first place. If it only seems that the risk of losses is more substantial than the one for gains, many people will steer clear of Bitcoin and all the other altcoins.
However, it’s not that difficult to find vendors that have begun accepting cryptocurrency payments. Since an ever-growing number of people have been lured in by crypto and started using it, retailers have wanted to guarantee that this cohort feels like they’re welcome as customers. Moreover, institutional investors are becoming increasingly interested in investing themselves and adding digital assets to their companies.
There are several merchant directories you can use in order to find businesses that accept cryptocurrencies. Since they are pretty diverse, you’re bound to find at least a few items you want.
Product range
So, what are the options you can shop for using Bitcoin? First and foremost, you should know that most of the payments are virtual. Although it’s possible to make crypto payments in brick-and-mortar locations, it’s rarer. After all, digital finance is based in the digital sphere and operates online.
Luckily, many online merchants sell everything, from apparel to household goods, including electronics, furnishings, tools and appliances. Several major retailers, including Microsoft, Starbucks, Burger King, Shopify, Subway and KFC, have started accepting Bitcoin. You can also purchase gift cards using BTC. An increasing number of venues permit this operation. These cards can later be redeemed at several stores, eating places, and online platforms and services.
Speaking of which, there’s a considerable number of online services you can pay for using BTC coins. Domain registration, VPN, subscriptions, especially the ones concerning gaming and web hosting, can all be paid for using Bitcoin. Naturally, many vendors accept cryptocurrencies as payment. Even multinational telecommunication giants, such as AT&T, have partnered with reputable crypto payment processors in order to enable this type of payment on their networks.
Charity donations can also be performed using cyber coins. Many organizations accept cryptocurrencies, and you can use them to donate to numerous humanitarian causes. Just make sure to check which institutions accept them beforehand. Traveling and accommodation can also be paid with cryptocurrencies. Airlines, travel companies and even booking platforms are increasingly open to crypto payments from their customers. Fully holiday packages can also be purchased using crypto.
Luxury sector
The lust for luxe is becoming more prominent among the general public, with a growing number of people ready to pay extra to get premium-quality luxury products for themselves. Designers’ clothing and footwear are naturally the most visible in this area, but many other categories are being eyed by consumers, including kitchenware, cars and wines. There’s no denying that craftsmanship plays a large part in why the hype has become so serious. There’s also the fact that luxury products tend to be exclusive.
Why so far vendors haven’t really started adopting crypto payments, researchers have begun discussing the many ways in which the blockchain could help the sector. Primarily, ensuring transparency and a reduction in the number of counterfeits that enter the market would create the ideal conditions for the growing community of luxury buyers. Shoppers would feel more secure in their choices, and all it would take would be adding a QR code that can be verified through the platform and confirm whether or not the product is genuine.
Although cryptocurrency payments aren’t yet incredibly popular, they’ve been gaining traction with the general public. It’s their novelty that attracts large swathes of consumers, as well as the many advantages associated with using them, including their ability to preserve their value over a long time. With this in mind, it’s not far-fetched to expect them to develop even further.