Every year there are more and more holders of cryptocurrencies. The scope of digital assets is expanding. If in 2014 bitcoin was an exotic investment, then 7 years later the number of cryptocurrency holders has increased significantly. New ways of making money from BTC, and applications of virtual money have appeared. More and more sellers in different countries accept payment for goods or services in coins. In 2022, bitcoins can be spent on airfare, pizza delivery, education, and technology. The potential of digital coins is enormous. However, blockchain technology and legal issues are slowing the pace of development.
Disadvantages of bitcoin for everyday use
A few years ago, pessimists argued that cryptocurrencies would not be used as a means of payment. Most users around the world still view digital assets as an investment vehicle. There are 3 factors that prevent the use of cryptocurrencies in everyday life:
- Restrictive measures by states.
- Technical features of blockchain.
- The volatility of digital coins.
Regulators in many countries closely monitor the cryptocurrency market. Each state has a specific position on this issue.
COUNTRY – STATUS OF DIGITAL ASSETS
United States – America Recognized as property, used as a means of payment, taxed.
Japan – Negotiable value. Considers legal tender.
China – Recognized as a commodity. Purchasing transactions are prohibited.
El Salvador – Legal tender equal to the national currency.
Brazil – Recognized as a financial asset. Can be used as means of payment for purchases.
The main technical limitation is the speed of the blockchain. The Bitcoin network is only capable of processing 7-10 transactions per second.
In addition, network congestion affects the amount of commission. Such indicators make the technology unsuitable for everyday mass use.
The high volatility of coins is another reason that complicates the use of cryptocurrencies. The
price of an asset can change by several percent during transaction processing. This makes it difficult to
estimate the value of the commodity. Traders are not in a hurry to spend Bitcoin on purchases, but save
them in hopes of making money. High volatility makes digital coins a potentially lucrative investment
Possible ways to spend bitcoins
Every day there are companies that accept payment in coins. You can use the coins at:
- Restaurants and bars.
- Online stores.
- Real estate agencies.
- Fast food chains.
- Car dealerships.
Users can spend BTC to pay for services (education, medicine, software development). Some countries allow tax payments in virtual coins. The scope of application of digital money is not limited.
The following methods are commonly used for payments:
- Transfers to cryptocurrencies
- Scanning QR codes
- Transfers using payment systems
You can find out which companies accept BTC on special sites. There are 3 services to finding trading firms:
- Coinmap. The service is a map with filters and marks places where you can pay with cryptocurrencies.
- Spendbitcoins. The search site sorts merchandise by category.
- Usebitcoins. Service helps to find stores and products.
Anyone can book a hotel room or pay for a plane ticket with cryptocurrency. These are not all the services that are available for coins. Digital money can be used to pay for a delivery or a cab, a subscription to an online service, or a gym membership.
Travelers will find the list of services that accept payment in coins useful:
- Virgin Galactic
- Luxury goods
You can buy yachts, jewelry, villas, and even islands with cryptocurrency. Since 2013, SkyCraft has been supporting digital coins. At the start of sales, a private jet cost 80 BTC.
The well-known American jewelry chain Reed Jewelers allows customers to buy jewelry for cryptocurrencies online at its online store. Luxury goods supplier White Company sells paintings, watches, and sports cars with delivery anywhere in the world. The site provides anonymity and does not give out any data about its customers. There is no need to convert digital funds into fiat money.
Transactions for the sale of villas, houses, and luxury apartments for the coins are carried out in the United States, Japan, and UAE. The first official sale of real estate took place in Texas. Registration took only 10 minutes. In Japan, the specialists of Yitanzi real estate company are confident that in 5-10 years payment in virtual currency will be in wide demand. The company is already introducing this option.
In early 2022, the opportunity to buy real estate for digital coins is available in Spain, Greece, and Bali. For a few dozen bitcoins you can buy a mansion with a view of the sea or a villa with swimming pools.
Buying sports cars for digital coins is a trend in recent years. Already in 2017, Peter Saddington bought a Lamborghini racing car for 45 BTC. At that time, the exclusive model cost $200 thousand. Peter Saddington did not regret the deal. He earned his capital by investing $115 in the crypto-assets at the dawn of their appearance. In fact, the sports car cost him a hundred dollars.
In 2020, Tesla founder Elon Musk announced the sale of cars for bitcoins. The case is not unique – a number of manufacturers allow you to pay with coins for luxury sports cars. Among them:
Other manufacturers are also keeping up with the times. Mercedes-Benz and Volkswagen are entering into contracts with Koine owners.
Technics. You can buy phones, computers, and mining equipment for cryptocurrencies. For the first time in 2014, the online hypermarket Overstock came up with an offer to pay with coins. Famous retailer Amazon has plans to start accepting payments in Bitcoin. For now, the firm is working through an intermediary, Purse. Dell computers can be purchased for coins through Coinbase, and mining equipment – on the website Newegg.
Education. Coins can be used to study at institutions in the United States, Germany, and Cyprus. In 2017, Lucerne University of Applied Sciences in Switzerland began accepting payments in digital money through the operator BitcoinSuisse AG. It is possible to become a graduate of BTC in Cyprus. The University of Nicosia was the first among accredited universities to begin accepting tuition fees in сoins.
Although official authorities in a number of countries are wary of cryptocurrencies and are in no hurry to give them the green light, and in some countries, they even prohibit operations with crypto, this confrontation is unlikely to last long. After all, most officials are loyal to bitcoins and other decentralized currencies.
In addition, people like digital money, and more and more consumers want to be able to use it as a full-fledged means of payment. Therefore, with each year more and more companies will sell their products for cryptocurrency and conduct cryptocurrency transactions with counterparties. Otherwise, customer bases will expand with competitors, to whom demanding customers will go. Most likely, in the next decade, people in many places on the planet will be able to use bitcoins and other highly liquid cryptocurrencies to buy what they need.