February 4, 2021

What can I buy with Bitcoin? How to do it

What can I buy with Bitcoin? How to do it

Bitcoin is a very interesting currency. On one hand, it gives a lot of opportunities for an average person. On another, a lot of people don’t know how to spend it. The high level of volatility is the additional factor that makes cryptocurrency not so good for people who want to use it for payments.

What can I buy with Bitcoin? How to do it

Yet, some people use Bitcoin as usual money. Today, we are going to describe goods that you can buy with BTC.

General information

Despite the skeptical thoughts about this cryptocurrency, now, a lot of people want to buy Bitcoin. A while ago, it dropped a lot in price. However, recently, this cryptocurrency is growing. Moreover, it managed to set a new record.

The analyst warnings say that this isn’t a very reliable currency but it gives a lot of opportunities for investors. Many want to get money fast. For this reason, a huge demand for this coin continues to grow.

A lot of people who bought Bitcoin hope that they can buy cryptocurrency today and become millionaires tomorrow. In some countries, though, cryptocurrency is used as a regular payment method for services, online shopping, or hotel booking.

I sell firewood for Bitcoins

What can I buy with Bitcoin? How to do it

A very small number of countries accepted cryptocurrency as an official payment method. In most countries, this is a very risky asset according to the governments’ decisions.

A very interesting fact is that some companies that accept Bitcoin sell very unusual goods. For example, one of them sells firewood, although it isn’t the only method to pay for this good.

Where can you spend Bitcoin?

Cryptocurrency can be used for internet purchases because this is a totally digital cryptocurrency. The assortment of goods that you can buy with Bitcoin grows. For example:

  1. Building materials.
  2. Freelance services. This is the most popular niche for Bitcoin application. Some customers propose not only Bitcoin but other cryptocurrencies for these services as well. At the same time, you must be attentive because some of these coins are only ICOs, and a very huge risk comes with these tokens. Due to this, if you are a freelancer who works for Bitcoin, you can get Bitcoin and understand that it can cost less than now in the future or it can make you a very rich man or woman.
  3. Cafe and restaurants. This is a very popular sphere in Europe or some developed countries. It is very easy to do if you live there. You need to use a barcode scanner and scan a special QR code with the Bitcoin address of the restaurant’s wallet. After that, you transfer money to that address.
  4. Other services available on the internet. Some of them aren’t legal, and you shouldn’t use them.

Bitcoin can be used as a payment method in a lot of other spheres.

Disadvantages of purchasing with Bitcoin

Until Bitcoin becomes a reliable cryptocurrency with low levels of volatility, you shouldn’t use this coin for payments. There are a lot of disadvantages of this method:

  1. You don’t know how much you really pay. Today, the price can look good as of the moment, but after Bitcoin grows you may understand that you have paid too much.
  2. Bitcoin is a great investment instrument for aggressive traders or investors. But if you want to use it as a payment method, few businesses agree to take this coin even in 2021.
  3. You don’t know who gets the money and if you paid too much or made a wrong transaction (risk is far higher) you can’t return your money at all, unless the seller transfers them back to you.

You’d better use special cryptocurrency exchanges to get fiat money for Bitcoin and only then make your payment. The assortment of goods that you can buy with fiat money is significantly better.

The advantage of exchanges is the possibility to invest your money. When you need to use cryptocurrency, you can get them in the currency that is accepted in your country for payments. Also, you can use special services to convert cryptocurrency to usual money. You can even use messengers’ bots for exchanging money. For example, a very interesting direction is Telegram bots. But you need to understand the risks of this method and very big commissions for transfers.

Also, a lot of scammers want to get your money using these services. You can pay them but not get your fiat money. It is profitable for scammers but isn’t profitable for you. You can also withdraw money to your electronic wallet.

Moreover, some payment systems support their own Bitcoin wallets. It is your wallet but based on their system. You can exchange your cryptocurrency to electronic or real money whenever you want. You can use these services for transferring cryptocurrency too.

Risk is always present

The simplest but the least reliable method of cryptocurrency exchanging is peer-to-peer. It is when one person transfers Bitcoin to another person and the second counteragent transfers fiat money to you.

There are a lot of special internet services where you can find a counteragent for this method of exchange. One of these websites is lokalbitcoins.com. However, you need to understand that this exchange method is associated with huge risks because the seller and buyer can’t guarantee that the other person will keep their word. At the same time, some experts say there is a lack of guarantees if you use other methods. For example, one of the most popular in 2014 exchange platforms, Mt. Gox, was closed that year. All money that clients owned there has been lost and no one could return them.

The lack of possibility to return cryptocurrency is the main risk. If you give your money to a scammer or bankrupt, you can’t get compensation or punish them in a legal way. You can’t even know for sure if this person is bankrupt or a scammer.

Despite a chosen cryptocurrency exchanging method and way of purchasing goods with Bitcoin, every person must remember about the volatility of it. The price can drop significantly in just a few hours. This is the main risk both for investors and people who want to use this cryptocurrency as a payment instrument.

You can keep Bitcoin but not much of this asset. Not many businesses allow you to use this currency for performing payments. If you are not a millionaire, it is too risky not to diversify your investment portfolio with more conservative financial instruments.

Bitcoin prospects

Let’s finish with some positive words. Bitcoin is so volatile now because it is only developing despite the fact that this is the oldest cryptocurrency among others. Sometime in the future, it is going to become more stable. You need to wait. There are some reasons why Bitcoin is a future. This is a decentralized currency, all operations are totally reliable and no one can find out who performs the operation. The future will surely come, but it needs some time.