What Can You Buy With Bitcoin?

Cryptocurrencies go mainstream, accepted by more vendors

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, that's not all that 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 it 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 founder Elon Musk is a crypto enthusiast, based on his Twitter feed, 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 advertisements 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.

Meanwhile, PayPal, which was once an eBay subsidiary, now 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.

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.

Article Sources
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