Bitcoin adoption: How to spend the crypto
Byline | Hannah Parker
Digital currencies, like cryptocurrencies, are becoming more and more popular in the world of investment and financial use.
When it was first launched in 2009, Bitcoin’s key design was to be used as a way for people to make daily transactions without relying on a bank. This meant using the cryptocurrency as a way to pay for things, like your morning cup of coffee, or bigger purchases like a car or an apartment. It also offered people a way to transfer money to one another without the fees or reliance on a bankin system. Since then, it has become much more synonymous with investment with people storing cryptocurrencies as alternative assets that hold value over time.
Bitcoin as a payment method
Bitcoin is the most popular cryptocurrency and most commonly used by traders, investors, and as a payment option. As more people start investing in Bitcoin, it is gaining more and more mainstream attraction – even during a bear market. More retailters across different industries are looking to accept Bitcoin as an alternative way to pay for goods. The increase of payment gateways which change Bitcoin to fiat (allowing retailers to accept Bitcoin but receive their home currency) has also helped the cryptocurrency’s cause.
According to the CEO of Bitcoin Smarter, because of the ease that retailers can now accept Bitcoin, the cryptocurrency is set for mass adoption within the next five years:
“While there are still critics that would argue against digital currencies, I see Bitcoin as the next way to pay for goods and services. The convenience behind cryptocurrency will ultimately drive users away from the issues from which traditional finance suffers.”
How do you spend Bitcoin?
Before you spend Bitcon, you need to first buy the cryptocurrency. As a decentralised digital currency, traditional banks don’t tend to sell them in the same way that you can’t buy stock from bankers. You can buy Bitcoin from an exchange, trading platform, or directly from another person.
Once you have Bitcoin stored in your account, online wallet, or hardware wallet, you can spend it at a place that accepts the cryptocurrency. There are major industry leading companies like Microsoft, Twitch, Virgin Airlines, and Wikipedia that accepts Bitcoin. Other small retailers also accepts Bitcoin, and – depending on your region – you might find your local grocer or coffee shop will take your Bitcoin.
To spend your Bitcoin, you need to log in to your cryptocurrency wallet, confirm the transaction, and send the payment. Once the deal is complete, it’s like any other transaction with fiat currency: Your order will be complete and you’ll be good to go.
As more companies, large and small, start accepting Bitcoin as a payment option, we will likely see more investors see greater value in the cryptocurrency. The more adoption the industry sees, the more its function and prices will increase. Because of supply and demand and Bitcoin’s limited supply, as the cryptocurrency is used more, its value will be driven up.