Nowadays, the most we hear about Bitcoin and other cryptocurrencies is how wildly their prices fluctuate. But if you have a keen interest, you will see through the hype to appreciate how the crypto industry is evolving to become a reliable payment method. This article is for you if you want to know where to use cryptocurrency.
History Of Crypto Payments: The Bitcoin Pizzas
The crypto industry has been evolving daily, and being a reliable payment method is one area that continues to impress. As you know, Bitcoin (BTC) is the most famous cryptocurrency, so it often charters the way for other cryptocurrencies to evolve. So, in terms of making payments, Bitcoin was tested first.
In 2010, a Bitcoin trader, Laszlo Hanyecz, announced on BitcoinTalk that he had traded Bitcoin for two pizzas.
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But this was no easy transaction. Back in the day, there was no infrastructure for anyone to spend Bitcoin or make Bitcoin payments. So, Laszlo was involved in a lengthy transaction that included sending the 10,000 Bitcoin to someone who, upon receiving the crypto, purchased pizza with fiat money.
The crypto world is still in awe of this pizza story, and everyone wonders how much those pizzas would be worth today. So, according to Business Insider, the infamous Papa John’s pizzas would now be worth $6 Million!
It was a big milestone that is now celebrated annually.
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And, while tracking the pizzas, you will realize that the industry has made progress in designing new payment processors.
A decade later, businesses are now accepting bitcoin payments, and the same goes for other cryptocurrencies like Ethereum (ETH), Bitcoin Cash (BCH), and Tether (USDT). So let us see where you can use your digital currency to make commodity payments today.
Where Can You Spend Cryptocurrency Today?
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Gone are the days when crypto was just an investment. If you remember, crypto or digital currency was partly developed so people could make anonymous payments.
For a while, making Bitcoin or crypto transactions included programming the transaction on your computer’s command line. But today, making payments is easier, and more online retailers and brick-and-mortar businesses accept cryptocurrency payments. Luckily, these crypto payments take a few minutes to complete, making it the best alternative to fiat payments.
Here are some of the places that accept Bitcoin payments:
a) Popular Online Retailers
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Many online retailers currently use payment getaways to process your crypto payments into fiat money at the time you pay. As a result, there is no price spillage. So, you pay for your products just like everyone else using a credit or debit card using crypto. Here are some businesses that accept Bitcoin as payment.
- Microsoft
- Paypal
- Overstock
- Newegg
- Shopify
- AT&T
- Rakuten
- AMC Theaters
- Starbucks
b) Brick-And-Mortar Businesses
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There are also many offline retailers accepting cryptocurrency payments today. While these are harder to pinpoint, you will only need to look at their windows, doors, or cash register to see if they accept cryptocurrencies. Brick-and-mortar businesses that accept Bitcoin directly use point-of-sale hardware with their payment processors. The POS hardware converts your crypto into fiat currency at the time of making the payment, thus guaranteeing no price spillage.
c) In the Gaming Industry
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With gaming becoming an industry on its own, more and more people are opting to buy gaming equipment and more services online. The companies that accept Bitcoin payments include:
- Twitch
- Humble Bundle
- Keys4Coins
- Bitcoin Casino
- Xbox
d) Travel companies
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Travel companies serve people of all nationalities, and this would mean many currency conversions for customers. But, with the Bitcoin Revolution, it is becoming easier to serve travelers from any place that accepts crypto. Here are some travel companies you can pay with crypto today;
- Expedia
- Virgin Galactic
- CheapAir
- Travala
e) Gift Cards
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Does Amazon accept Bitcoin? Unfortunately, no. But does that mean you can’t use crypto to make purchases from Amazon? Fortunately, some folks have discovered a way to use crypto to buy items from Amazon and BestBuy, even as they wait for the companies to start accepting Bitcoin. And so can you!
These cryptocurrency payments are made through gift cards. You can buy gift cards using crypto from companies like;
- Egifter
- Gyft
- CryptoRefills
- Bitcoin.com
- Coingate
Then, you can redeem these gift cards on Amazon and Bestbuy. Thus, you can still get products from Amazon without hassle if you don’t have fiat money.
How To Make Cryptocurrency Payments
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Are you wondering where to start if your favorite retailer or business accepts Bitcoin as payment? The process is easy nowadays and resembles how you use your banking app to transfer money to and from your bank account. While there are many crypto applications to choose from, here is what you’ll need to get started.
a) Crypto
Owning crypto in your name is the easiest way to start making payments with cryptocurrencies. There are several ways to do this; you can open an account with a crypto exchange or company. Alternatively, you don’t have to open a crypto account, as you can buy crypto from someone you trust. But the latter requires good knowledge of how to handle your crypto.
Thus if you are a beginner, it might be best to have an account with a reputable exchange company. An exchange provides some safety features you will not have when buying crypto on your own. For instance, they can store your crypto keys for you and guide you when buying crypto in their safe platforms.
b) Crypto Wallet
As you consider buying crypto, know you will need a safe way to store them -or the keys to your investment. The crypto world is quite risky, and one slight mistake could expose your investment to unscrupulous persons who could steal all of it. So, you need to invest in a crypto or Bitcoin wallet that will store your investment’s private and public keys. If you want the best safety, you might want to invest in a hardware wallet that stores your keys offline.
Alternatively, you can use software wallets and paper wallet services if you want to use the Bitcoin address to make payments. Keeping your keys safe is one of many reasons you need a crypto wallet address. Additionally, you must also have a wallet to make crypto payments.
Since there are many wallets you could use to make payments, you will need to pick the one you can use easily. One type of wallet you can use is from Coinbase, which is one of the leading crypto exchanges. Here is an example of how you would use a Conibase wallet to make a payment online.
Step 1: Open the Coinbase wallet app on your smartphone.
Step 2: Click the send money button.
Step 3: Enter the dollar amount you need to send. Remember, the transaction will deduct the dollar amount equivalent from your crypto balance.
Step 4: Enter your recipient’s wallet address. Alternatively, you can also use a QR scanner to find their address.
Step 5: Click Send or find a similar button to complete the transaction.
Once you send the payment, your recipient can receive it automatically or have to tap their Recieve payment button to finalize the transaction.
What Are The Advantages of Using Cryptocurrency for Payments?
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Now that you understand how and where to use cryptocurrency for payments, here are some advantages you can enjoy.
- You maintain anonymity when you pay with crypto since it is a decentralized system that does not store user information.
- As a peer-to-peer system, you don’t need third parties to verify your payment, thus saving you and your seller a lot of time.
- You can pay with crypto from anywhere in the world. All you need is to fund your cryptocurrency account and have a safe wallet to get started.
- Thanks to the industry’s peer-to-peer nature, there are fewer fees when you pay with cryptocurrency.
Are There Disadvantages of Using Cryptocurrency for Payments?
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As a highly independent industry, you will find the following disadvantages of using crypto for payments.
- Even without third-party involvement when making payments, you will find the transaction fees a bit expensive compared to fiat currency.
- The value of crypto is quite volatile, so you may always need to double-check if the amount you have in your crypto wallet is enough to complete the payment.
- It is very easy to lose your crypto wallet, making it impossible to complete payments. You may also risk losing your entire portfolio hosted on that wallet if you lose it.
- Crypto payments are non-reversible, so unless the recipient voluntarily reverses the payment, there is no way to get your crypto back.
Takeaway
So, there you have it. You now know where and how to use cryptocurrency for payments. You only need to fund your crypto wallet, and you can make payments for services and products. Using crypto is a good way to guarantee privacy when you purchase, not to mention it is also a peer-to-peer system that makes transactions easier and cheaper to complete.
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