Bitcoin and other cryptocurrencies continue to make headlines, especially as the cryptocurrency market swings along with stocks. But even though the volatility of cryptocurrencies puts off many investors, it is important to remember that it also has a practical use.
“Bitcoin is frequently seen as a speculative tool by retail investors, with future growth potential,” said Jonathan Merry, director of Bankless Times. “However, Bitcoin was created as…a decentralized payment method that allows users to manage their accounts and make purchases without having to rely on government fiat currencies.”
Thanks to its growing popularity, particularly in recent years, a large number of merchants now accept cryptocurrencies as a payment method. It doesn’t have the same degree of adoption as fiat, but Merry said there are a surprising number of sites that accept Bitcoin and even some other cryptocurrencies. Here’s a look at some of the items you can buy using crypto.
Transportation
Jeremy Wagner, a financial analyst at Trading Pedia, said it’s possible to book a plane ticket or rent a car using crypto if you do it through Expedia. The site accepts Bitcoin through its partner Coinbase for a small transaction fee. “This means you can book your next vacation using Bitcoin,” he said.
Wagner added that several car dealerships also accept cryptocurrencies. For example, you can buy an Audi with Bitcoin using the CryptoExchange platform. BMW also accepts cryptocurrencies at some of its dealerships. And Tesla allows customers to buy cars with Dogecoin.
retail items
Several retailers now also accept Bitcoin as payment, according to Wagner. If you want to furnish your home with crypto, you can do so by shopping at Overstock.com. You can also shop at Nordstrom, which also allows customers to use Bitcoin as a form of payment. In the market for a new computer? Newegg has been accepting digital currencies since 2014 and currently accepts multiple cryptocurrencies including Bitcoin, Litecoin, Dogecoin, and many others.
Real estate
You can now buy a house with cryptocurrency-backed mortgages, according to David Peterson, co-founder of Bankdash. “These types of mortgages work when consumers put up their crypto assets as collateral and receive a home loan to buy a house in return,” he explained. “The benefit to the consumer is that they don’t need to sell their crypto, which they implicitly believe will increase in value over time, and they can still benefit from using it to buy property.”
Sound risky? This. Peterson warned that if the price of crypto falls, he may need to post more crypto as collateral. If you can’t, you could default on your loan and trigger the foreclosure process.
Tokens no fungibles (NFT)
Frank Corva, Senior Crypto and Blockchain Analyst for Finder, said that if you want to become an NFT collector (think profile pictures of cartoon characters like Bored Apes or CryptoPunks and other digital artwork), you’ll need crypto to buy it. .
“In the virtual world, you can use digital assets like Ether or Solana to buy NFTs,” he said.
Anything you can buy through PayPal
Although many businesses accept crypto payments today, many more still do not. However, there is a solution in many cases: PayPal. The payment company launched its Checkout With Crypto service, which allows users to spend their crypto with all PayPal retailers.
“Given the reach of PayPal, you’ll be able to spend crypto on just about anything you choose,” Merry said. She explained that the platform will act as an intermediary, exchanging your cryptocurrency for local money that is paid directly to merchants. “But the end result will be the same on your end: you will spend your cryptocurrency and receive whatever goods or services you choose.”
Ethereum, Litecoin, and Bitcoin Cash are among the supported cryptocurrencies, in addition to Bitcoin.
Is it a good idea to buy with cryptocurrencies?
After the cryptocurrency market tanked from its all-time highs last year, you may be wondering if it’s time to dump your coins. Spending it is one way to do it, although there could be financial consequences for doing so.
“I don’t think it’s a good idea to pay for items with crypto if you don’t have to,” Corva said.
If you saw any profit, spending your crypto is equivalent to selling it, which would trigger capital gains taxes.
Corva said: “Personally, I follow the philosophy that cash is for spending and crypto is for saving.”