When it was launched in 2009, Bitcoin was supposed to be a medium for daily transactions, making it possible to buy everything from a cup of coffee to a computer or even an apartment. Its trajectory veered somewhat after launch—it became a favorite conduit for many criminal activities.
Still, in 2023, that's not even the majority of what Satoshi Nakamoto's creation is used for. The range of products and services you can get legitimately with bitcoin may be wider than you think and grows by the day.
Key Takeaways
- Bitcoin and other cryptocurrencies can be used to buy a growing range of products and services.
- While the number of retailers and payment processors accepting bitcoin has increased in recent years, a number of vendors are holding out.
- Electronics, luxury watches, and even cars are among the items that cryptos can purchase.
Bitcoin Goes Mainstream
Over the years, retailer and consumer acceptance of bitcoin has mirrored its wild ride in crypto markets. In the wake of its dizzying upswing in value in 2017, many retailers announced that they would begin accepting it at their stores—only to back away from the decision later. In recent times, however, more and more companies have come around to the idea of integrating bitcoin into their operations.
There are two reasons for this:
- The first is improvements in cryptocurrency technology. Innovations like the Lightning Network are being touted as solutions to scaling the number of transactions in the cryptocurrency’s network and making them faster and more efficient.
- The second is that cryptocurrency is no longer confined to an obscure corner of the financial services industry. The crypto exchange platform Coinbase’s public listing, new price records, and positive mentions by regulators and policymakers are proof of its potential.
And so, the vision of Satoshi Nakamoto, Bitcoin’s mysterious inventor, may very well come to pass, and bitcoin will live up to its original promise of being a currency for daily transactions.
How to Buy With Bitcoin
The easiest way to buy anything with bitcoin is to use a crypto debit card. Such cards are preloaded with the cryptocurrency of your choice. While you spend crypto, the retailer receives fiat money as payment. Crypto debit cards partner with payment-processing giants like Mastercard and Visa to ensure that these transactions occur seamlessly.
What You Can Buy With Bitcoin
While the number of institutions accepting bitcoin is growing by the day, large transactions involving it are rare. For example, very few real estate deals using cryptocurrency have been reported. Even so, it is possible to buy a wide variety of products from e-commerce websites using bitcoin. Here are some of the most active categories.
Car Dealerships
Some car dealers already accept bitcoin as payment. The list spans a range of vehicles and encompasses luxury dealers that sell Lamborghinis (a favorite with bitcoiners) to those offering more utilitarian vehicles like Subarus. Electric carmaker Tesla has become the biggest and most recent name to join the list of companies that enable you to purchase cars with the cryptocurrency. Tesla CEO and X Corp owner Elon Musk is a crypto enthusiast and has said that he supports bitcoin.
In March 2021, via tweet, Musk stated Tesla would accept bitcoin as payment. But, a few short months later, Musk tweeted that Telsa was suspending bitcoin payment, citing environmental concerns.
Technology and E-commerce Products
Several companies that primarily sell tech products accept bitcoin on their websites. Among them are Newegg, AT&T, and Microsoft.
Microsoft currently accepts bitcoin only at its online store, not on its Xbox gaming platform. It also doesn’t allow ads promoting cryptocurrency or crypto-related products on its site.
Overstock, an e-commerce platform selling a wide array of merchandise, was among the first sites to accept bitcoin, starting in 2014; its founder, Patrick Byrne, was an early proponent. Many other sites, big and small, also allow you to purchase products with bitcoin. Two examples are Shopify and the Japanese e-commerce giant Rakuten.
Notable holdouts to date are Amazon, the world’s biggest online retailer, and eBay. As far back as 2014, Amazon said it had no plans to engage with bitcoin. That reluctance is puzzling since platforms owned by the company, like Twitch, allow and even encourage the use of bitcoin.
EBay mulled allowing cryptocurrency use on its platform after the run-up in bitcoin prices in 2017. It has even bought large banner advertisem*nts at cryptocurrency conferences. But in 2019, the San Jose, Calif.-based company would not commit to whether it will approve cryptocurrency-based transactions. However, by 2021, the company commented to Reuters and said it was looking into the future of all forms of payment, including cryptocurrency, and was interested in the NFT market.
As of 2023, eBay's policy of not accepting bitcoin was still in effect.
Meanwhile, PayPal, which was once an eBay subsidiary, allows customers to buy, sell, and hold cryptocurrency in their accounts.
Jewelry and Expensive Watches
A number of luxury goods makers and retailers have begun accepting bitcoin as a form of payment. The online luxury retailer BitDials offers Rolex, Patek Philippe, and other high-end watches in return for bitcoin and other cryptocurrencies. Luxury watchmaker Franck Muller even produced a watch encrusted with gold and diamonds and containing a QR code from the bitcoin genesis block. Some other jewelry stores have partnered with payment processors to facilitate crypto-based purchases from their stores.
News Media
Cryptocurrency media outlets generally accept bitcoin for subscriptions or other services. Among mainstream outlets, the Chicago Sun-Times became the first major publication to accept bitcoin on its platform in 2014. That same year, magazine publisher Time Inc. began accepting cryptocurrency for digital subscriptions. In 2019, the magazine publisher formed a new cryptocurrency partnership with Crypto.com.
Insurance
For the most part, the insurance industry has moved cautiously in embracing cryptocurrency. But things are beginning to change. While life insurance is still off-limits, insurance providers have begun accepting premium payments using bitcoin for other products in their portfolios.
In April 2021, for example, Swiss insurer AXA announced that it had begun accepting bitcoin as a mode of payment for all of its lines of insurance except for life insurance (due to regulatory issues). Metromile, an agency that sells "pay-per-mile" auto insurance policies, also accepts bitcoin for premium payments.
How Can I Buy Something With Bitcoin?
The easiest and most convenient way to make purchases using bitcoin or other cryptocurrencies is with a cryptocurrency debit card. These cards, which are available from major crypto exchanges and other providers, also allow the holder to withdraw cash from participating ATMs. Many participate in major networks, such as Mastercard and Visa.
How Does a Bitcoin Debit Card Work?
Bitcoin debit cards work much like regular prepaid debit cards, except that instead of cash, they are preloaded with bitcoin or another cryptocurrency of your choice. When you use them at a store, the money is withdrawn from your card in cryptocurrency and paid to the merchant in fiat money, such as dollars. When your balance gets low, you can reload the card.
Can I Use Bitcoin to Make Purchases on Amazon?
While Amazon and most other large online retailers do not accept bitcoin directly, buying an Amazon gift card (or gift cards from most other major online retailers) with bitcoin is fairly easy by navigating to various retail bitcoin-friendly retailers like Bitrefill.com and buying gift cards with bitcoin at today's exchange rate.
The Bottom Line
The list of goods and services you can buy with bitcoin and other cryptocurrencies grows daily as people and vendors get more comfortable with virtual money. Insurance, consumer staples, luxury watches, and event tickets are among the items that cryptos will buy. If you want to buy things with cryptos, start with getting a debit card. Available from major crypto exchanges and other providers, the cards permit the holder to withdraw cash from participating ATMs.
As a seasoned enthusiast and expert in the realm of cryptocurrencies, particularly Bitcoin, I bring a wealth of knowledge and insight into the evolution of digital currencies since their inception. My expertise is grounded in both theoretical understanding and practical experience, allowing me to delve into the intricacies of the Bitcoin ecosystem.
The article you've provided touches upon various facets of Bitcoin and its usage, spanning from its initial vision as a medium for daily transactions to its current applications in diverse industries. Let's break down the key concepts discussed in the article:
-
Bitcoin's Evolution: Launched in 2009, Bitcoin aimed to be a medium for daily transactions. However, its trajectory shifted, and it became associated with criminal activities. Despite this, in 2023, legitimate use cases for Bitcoin have expanded, showcasing a wider range of products and services.
-
Retailer Acceptance: Retailer and consumer acceptance of Bitcoin has seen fluctuations over the years. While some companies initially embraced Bitcoin, others hesitated. Recent developments indicate a growing acceptance, driven by improvements in cryptocurrency technology and increased visibility in the financial services industry.
-
Bitcoin Integration: Companies are integrating Bitcoin into their operations due to advancements in cryptocurrency technology, such as the Lightning Network. Public listing of platforms like Coinbase, new price records, and positive mentions by regulators contribute to Bitcoin's mainstream recognition.
-
Buying with Bitcoin: The article suggests that the easiest way to buy anything with Bitcoin is to use a crypto debit card. These cards are preloaded with cryptocurrency, and when used for transactions, the retailer receives fiat money.
-
Products and Services: Despite the growth in institutions accepting Bitcoin, large transactions are still rare. However, various categories of products can be purchased with Bitcoin, including cars from certain dealerships, technology and e-commerce products, luxury goods like watches and jewelry, subscriptions to news media, and even insurance.
-
Crypto Debit Cards: The article highlights the convenience of using cryptocurrency debit cards, which function similarly to regular prepaid debit cards. These cards allow users to withdraw cash from ATMs and make purchases by converting cryptocurrency into fiat money.
-
Amazon and eBay: While many companies accept Bitcoin, notable holdouts include Amazon and eBay. The latter has considered cryptocurrency transactions but has not committed to them. However, PayPal, once an eBay subsidiary, now allows customers to buy, sell, and hold cryptocurrency.
-
Diverse Industries: The article notes the expansion of Bitcoin usage into various industries, including insurance. While the insurance industry has been cautious, some providers now accept Bitcoin for premium payments, excluding life insurance due to regulatory issues.
-
Purchasing Gift Cards: Although Amazon and other major online retailers don't directly accept Bitcoin, users can buy gift cards from Bitcoin-friendly retailers like Bitrefill.com and use them on these platforms.
In conclusion, the article emphasizes the growing acceptance and integration of Bitcoin into mainstream commerce, showcasing its potential to fulfill Satoshi Nakamoto's original vision of being a currency for daily transactions. The expansion of use cases, coupled with advancements in technology, indicates a promising future for Bitcoin in the world of finance and commerce.
