Cryptocurrencies have been making headlines for the past few years. They are digital or virtual currencies that use cryptography for security and operate independently of a central bank. The most well-known cryptocurrency is Bitcoin, but there are thousands of other ‘altcoins’ available. As cryptocurrencies become more mainstream, they’re not just being used for investing. More and more businesses are accepting cryptocurrencies as a legitimate source of funds.
So, what can you actually purchase with cryptocurrency? Here’s a look at some of the possibilities:
- Online Retailers: A growing number of online retailers are opening up to the idea of accepting cryptocurrencies as a form of payment. For instance, a popular online retailer, accepts Bitcoin as payment for any of their millions of products, from furniture to electronics. Shopify, another major e-commerce platform, also allows its merchants to accept Bitcoin, Ethereum, Litecoin, among others.
- Travel and Accommodation: If you’re an avid traveler, you’ll be pleased to know that you can pay for your travel expenses using cryptocurrencies. Expedia, one of the world’s largest online travel booking agencies, accepts Bitcoin for hotel bookings. CheapAir also accepts Bitcoin as payment for flights, hotels, car rentals, and cruises.
- Gift Cards: If you’re unsure where to spend your cryptocurrencies, consider buying gift cards. Websites like Gyft and eGifter allow users to purchase gift cards for various retailers, including Amazon, Sephora, Home Depot, and more, using Bitcoin. This way, you can essentially use your cryptocurrency to buy anything you want.
- Food and Beverages: Believe it or not, you can even use cryptocurrencies to buy food and drinks. Certain Subway outlets in the U.S. accept Bitcoin as payment. KFC Canada had a ‘Bitcoin Bucket’ promotion where customers could buy a bucket of chicken with Bitcoin. Starbucks customers can also use the Bakkt digital wallet app to pay for their drinks with converted cryptocurrency.
- Luxury Goods: If you’re in the market for luxury goods, you’re in luck. High-end watchmakers like Rolex and Hublot have started accepting Bitcoin as payment. BitDials is an online luxury marketplace that offers watches, jewelry, and even cars for purchase with Bitcoin.
To make a purchase with cryptocurrency, you’ll need a digital wallet where your cryptocurrencies are stored. You’ll also need the recipient’s address where you’ll send the payment. This could be a QR code that you scan or a long string of numbers and letters that you enter manually. Once you’ve initiated the transaction, it will be verified by the network through a process called mining. This involves powerful computers solving complex mathematical problems to confirm the legitimacy of the transaction. Once the transaction is verified, it’s added to the blockchain, a public ledger of all cryptocurrency transactions.
In conclusion, the possibilities of what you can buy with cryptocurrencies are expanding rapidly. As more businesses begin to accept these digital currencies, and as they become more widely adopted, we can expect to see this list grow. Cryptocurrencies offer a new way of making purchases, providing a level of convenience, security, and privacy not always available with traditional forms of payment.