When the idea of cryptocurrency was first talked about, there was a lot of curiosity about what the technology could do. That happened more than 10 years ago, and since then, the world has accepted a new kind of financial freedom. But did you know that cryptocurrencies are more than just a way to invest? You can also use them to pay your bills.
The original cryptocurrency, Bitcoin, was based on the idea of a peer-to-peer electronic payment system that didn’t require people to use banks. Bitcoin is important enough now that it can be used to pay for goods and services. Is it possible to pay your bills with a variety of cryptocurrencies?
Doing Payment with Cryptocurrencies
Putting aside the idea of just investing, using something like Bitcoin to make a payment is as easy as it has ever been. Even though a wallet that you control yourself is safer, there are entities that can make the transfer happen. Cryptocurrency exchange platforms, such as Binance, make it easy to switch from fiat currency to cryptocurrency and back again.
To pay bills with cryptocurrency, the first step would be to set up a wallet. You can easily find a wallet that can hold all of your different cryptocurrencies by searching the web. You can choose the best option from the many online and hardware wallets you can use if you know what cryptocurrencies you have and what kind of wallet you prefer.
Users can quickly determine which companies accept cryptocurrency as payment by visiting their websites. A vast number of locations have adopted blockchain technology to accept digital currencies. Amazon accepts Bitcoin, Ethereum, and Cardano as payment as well.
Bills you can pay with cryptocurrency
With the recent arrival of payment processors like BitPay, it is now easier than ever for people who own cryptocurrency to pay for things with digital assets. Payment tools like a crypto debit card can now be used to pay rent, mortgages, and utility bills. The payment processor basically turns cryptocurrency into fiat money for banks that don’t yet accept cryptocurrency directly as a form of payment.
The biggest effect on these payment projects has been that cryptocurrency is becoming more and more popular. Since then, companies like AT&T have made it possible to pay bills with cryptocurrency. Also, some companies let you pay for their services right from a cryptocurrency wallet.
Who accepts Bitcoin?
Even though there are hundreds of cryptocurrencies that can be used, Bitcoin is by far the biggest one based on market capitalization. As the most well-known digital asset, it has also become the one that some of the biggest companies on the planet are most likely to use.
Also Read: How to securely store cryptocurrencies?
Microsoft, Wikipedia, and Shopify.com are all places that accept Bitcoin as a way to pay. Xbox, one of Microsoft’s most successful businesses, lets people buy things through Bitcoin stores.
Still, using a credit card that works with Bitcoin is the easiest way to pay bills with Bitcoin. The card works just like a debit card that has already been loaded with money; it is filled with the BTC you own. So, when the card is used, the cryptocurrency is turned into the exact amount of money that the vendor needs.
Also, there are a couple of different ways to get a Bitcoin debit card. A user can get one either through an exchange that offers it or through a credit card company like Mastercard or Visa. For example, the second one has a Shift Bitcoin Debit Card that links to their account and can be used almost anywhere.
Bitcoin bill payment services
Lastly, there are a number of companies that will help their customers buy things with BTC on their behalf. One of the best companies is Coinsfer, which lets you pay bills and buy things with Bitcoin. Buyers tell Coinsfer what they want to buy, and Coinsfer figures out how much it will cost in BTC. The order is then sent out.
Always make sure to ask different vendors and stores if they accept Bitcoin as a payment option. Well-known brands like Home Depot, Twitch, Microsoft, Whole Foods, and Overstock already accept it. So, the answer might surprise you.
Also, when you pay directly with Bitcoin, you don’t need any third parties, so you don’t have to pay any service fees. On the other hand, using cryptocurrencies in everyday life is still in its early stages. But now that states like Colorado accept Bitcoin for tax payments, the number of uses will only keep growing.
Pros and cons
Even though it’s getting easier to pay bills with cryptocurrency, it has its pros and cons, just like anything else. The biggest benefit of using cryptocurrency to make payments is obvious and tied to the biggest benefit of cryptocurrency itself, which is that it is decentralized. A peer-to-peer blockchain network lets people be free with their money without the government keeping an eye on them. Also, you can use cryptocurrencies and payment methods from anywhere in the world as long as you have an internet connection.
On the other hand, some blockchain networks charge fees to make transactions, which raises the cost of everything. Also, the lack of strict rules makes it risky to use cryptocurrency. So, if money is lost, it is very unlikely that it will be found again. Lastly, the cryptocurrency market as a whole can be volatile, which makes prices that change all the time a worry.
Still, anyone with a cryptocurrency wallet can pay bills with cryptocurrencies. This trend should only get stronger in the years to come.