The use of cryptocurrencies as an exchange medium for trading is one of the purposes of digital coins. With the development of the crypto market, digital money in many countries has acquired the status of an official means of payment.
In 2010, a pioneer in this area, Lazlo Hanesh, bought two pizzas for 10,000 BTC. Given their current cost, it is possible to buy several islands for that amount. What other goods and services are being sold and bought for cryptocurrencies in 2020?
In the US and Europe, the first offers to sell cars for Bitcoin appeared in 2015. Such payment options were offered at forward thinking salons and daring private owners. By 2017, there were already a lot of opportunities to pay for the purchase of a car with cryptocurrency. A flaw in the legislative framework and various financial constraints prevented the practice from spreading.
Deals with auto and motor vehicles require the registration of the vehicle in the name of the new owner. Therefore, paying with cryptocurrency would automatically replace registration. Since all tokens on the Blockchain create a record automatically which is entered onto the register. However, the implementation of this approach requires modernisation not only of the legislative system, but also of the banking sector.
Car dealerships and private sellers offer both good mid-range cars (Ford Focus), as well as expensive models (BMW X5 or Lexus LS570). Japanese car dealer Liberala on the price tags of the Mercedes Benz S Class indicates the cost in yen, dollars and BTC. The official Tesla electric car dealer also sells cars for Bitcoin. Depending on the configuration, you will have to pay from 7 to 10 crypto coins.
The indicated price in cryptocurrency is not considered a public offer and is recalculated on the day of purchase at the rate of the fiat currency (usually US dollar or Euro). In addition to Bitcoins, you can also pay with other popular tokens:
The cost of transferring BTC varies between USD $5-10, depending on the speed of the transaction.
Online hypermarket, Overstock, was the first to start selling phones for Bitcoins (in addition to fiat currencies). On the website, one could pay with cryptocurrency for any gadget and accessories.
Since 2017, payment for goods and services with cryptocurrencies began to cover all spheres of life. In addition to cars and electronic gadgets, online platforms and even stationary stores began to sell for crypto tokens. Some other items that can be purchased include the following:
Elite clothing, cosmetics and perfumery
Paintings and decorations for interiors
Transactions on the sale of real estate or business between legal entities and individuals have become possible. It is not very convenient to use cryptocurrency to pay for budget goods and small services (hairdresser, cleaning, taxi) because of high commission fees. Also, transactions in Bitcoins can take up to several hours if the network is overloaded. To speed up the process of confirming a transaction, the buyer has to increase the system’s commission. The leaders of the Lightning Network project claim that after the final launch of the network, users will be able to pay in Bitcoin for food in the supermarket or for a cup of coffee on the street.
It is convenient to use cryptocurrencies when paying for fairly expensive services such as the following:
Booking flights and tour packages for travel
Rental housing and reimbursement of utility costs, mobile bills
Study at universities (the University of Nicosia in Cyprus was the first to realise this opportunity, provoking student approval and spurring followers)
Purchase of fuel cards for large sums
The US government is working to introduce tax payments in cryptocurrencies. Of course, at the request of the taxpayers. For settlements between any legal entity and individual, it is sufficient that each party has a cryptocurrency wallet and coins. Conveniently, you do not need to convert fiat currencies and pay commission to banks.
Payment in crypto tokens is a standard practice for the IT industry. For the launch and development of many projects, investment funds were collected in cryptocurrencies. This removed international barriers and overcame currency conversion problems. Charities, research and general public foundations have followed the lead of trendy startups. The USA became the pioneers in this area. Grant Life Foundation accepts donations in Bitcoins. European subsidiaries cannot afford this due to flaws in the legal framework. The United States currently has the most favorable environment for introducing cryptocurrencies into the field of finance at all levels.
After the active introduction of Bitcoins and other cryptocurrencies into international financial flows in 2017, a recession followed in 2018. Many governments were worried about a new opportunity for money laundering. The bills were edited several times during 2018, 2019 and the current year. Readers will find up-to-date information on the rates of popular cryptocurrencies, as well as changes in legislation, on the blog and on the EXMO YouTube channel.