No matter where you lie on the financial spectrum of today, there is a high probability that you must’ve heard of the term ‘bitcoin.’ Bitcoin is becoming widely popular by the day. Around 46 million Americans had at least a share of bitcoin in 2021, which is expected to increase even more with time.

 

Despite all the popularity that bitcoin has gained in the past few years, many people are out there who are not familiarized with bitcoin, while others view it only as a way to earn interest. That being said, we are here to explain what bitcoin is and how you can spend bitcoin.

So, before getting to the part where we explain how to spend bitcoin, let’s get started with how bitcoin came into existence.

Bitcoin: A Brief History

Created out of the turmoil of the great recession of 2008, Bitcoin happens to be the father of all the types of crypto that exist in the world today. About one week after the creation of the genesis blockchain, the first bitcoin test transaction was performed. However, bitcoin didn't have any monetary value back then.

Who would’ve anticipated back then that you could buy and sell bitcoin and keep it in your savings account as well? And not just that, but major businesses like Tesla would start accepting bitcoin.

As per the traditional fiat financial system, transactions could be meddled with or reversed, and their amounts could add up. To tackle those issues altogether, Bitcoin was presented as a way to perform instant payments without using a third-party merchant like PayPal.

 

Not just that, but all the bitcoin transactions could also be traced via the bitcoin address so that the integrity of the network could be maintained rather than relying on third-party institutions.

How Does Bitcoin Work?

Blockchain comprises many small units known as blocks and tends to carry information regarding that particular bitcoin transaction. The data stored in every block contains several things such as the total value of the bitcoin transaction, bitcoin address, date and time of the bitcoin transaction, etc.  

 

Therefore, this data block for each bitcoin transaction is unique. When combined in chronological order, these entries or data blocks result in something called the blockchain.

This blockchain is edited every time any new crypto transaction is made. This may be viewed as risky to some people, but it is precisely what makes these crypto payments reliable and secure. Every time BTC payments are made, they are verified by a number of individuals who hold bitcoin.

In addition to that, the unique digital codes of the user's bitcoin wallet and transactions are also to be aligned with the appropriate encryption patterns. Moreover, it is almost impossible to crack or replicate these codes, which adds more to the security of bitcoin transactions and keeps your bitcoin wallet safe.

What Can You Purchase with Your Bitcoin Wallet?

With each passing day, the bitcoin revolution is reaching new heights, and it is becoming easier than ever for digital bitcoin or other cryptocurrency holders to spend as they wish. This has played a vital part in paving the way for greater practicality and adoption all across the world.

 

That being said, let’s take a look at some of the things and services you can purchase with bitcoin and other cryptocurrencies.

1. Gift Cards

Well, gift cards don’t need an introduction now, do they? Undoubtedly, spending cryptocurrency on gift cards is one of the best purchases you can make with your bitcoin wallet.

 

Even though more companies are starting to accept bitcoin as a direct payment method, it has still not been regularized enough. Hence, purchasing gift cards with crypto and then redeeming them at the store is an alternatively easy and convenient way to make businesses accept bitcoin.

 

With over 1500 brands available at Coingate, you can buy bitcoin gift cards for a wide variety of products and services that range from food items to clothing products to your favorite electronics. Not just that, the services offered by Coingate are available for 70 different countries, so it won’t be a problem if you shift from one country to another and still wish to purchase gift cards from Coingate. That would still be quite possible. 

Another perk of buying gift cards from Coingate is that it is probably one of the cheapest gift card providers. Coingate provides superfast checkout and instant delivery - all at a very minimal fee. Moreover, the money-back guarantee coupled with the option of purchasing gift cards via 15 different cryptocurrencies just takes Coingate to a whole new level. 

So, suppose you visited a Dunkin Donuts outlet and forgot your cash at home. You can show them the gift card you received in your email and get your favorite donuts without any hassle.

 

If the gift card was delivered to you in the form of QR codes, you could ask the merchant to scan the QR code and redeem that amount quickly.

What Are Gift Cards and What Are the Advantages of Using Gift Cards?

Gift cards can be defined as electronic vouchers that constitute gift codes. Gift cards tend to act like prepaid debit cards and come with a particular amount of money. They can be delivered to you in the form of a QR code or in numeric form and serve as a great way to spend bitcoin.

In simple terms, a gift card serves as an alternative to cash to make purchases or avail of certain services. Gift cards can be purchased for personal use, and they can be an excellent gift for your friends and family as well. 

When you have cryptocurrency, you have the liberty to exchange it with any gift card you desire. An authentic crypto exchange will make it effortless for you. For your zeal and love for video games, a Steam gift card from Coingate can do wonders for you. 

The Advantages of Crypto Gift Cards

Gift cards purchased using cryptocurrencies like Bitcoin offer quite a lot in a number of ways which has increased their fame nowadays. Undoubtedly, the convenience they offer makes our lives easier in many different ways.

If the gift card is bought with bitcoin or crypto, it can be used worldwide without any restrictions. While you may not be able to pay directly with your bitcoin wallet, you can purchase a gift card with your bitcoin wallet and redeem it at the respective store.

 

Other than that, you won't have to go through the hassle of withdrawing cash when you go shopping since you can pay with the gift card alone.

You might be unaware of the fact that fiat money exchanges can cost up to 20%, and nobody would want to lose their money in currency exchanges, right? Hence, purchasing and using gift cards with your bitcoin wallet can serve as a cheap and easy way out.

If you wish to spend bitcoin with the intention of giving a gift, a bitcoin gift card would be a great way to go. You will be benefited as you can purchase the gift card for any merchant or e-commerce platform that doesn’t directly accept bitcoin.

 

On the flip side, the recipient will have the freedom to purchase products and services as per their own preference. For example, if they want to purchase something from Amazon and you want to pay with your coinbase wallet, that won't be possible as even though amazon accepts bitcoin, but not directly.

 

Hence, as an alternative, you can purchase an amazon gift card using bitcoin and gift it to them so they can buy their desired product.

2. Charity

You must’ve heard the famous quote that goes something like:

Your greatness is not what you have; it’s what you give – Alice Hocker

That said, bitcoin makes the process of supporting charities quite easier. You may not know it, but many charitable organizations claim to be non-profit but still incur many hidden expenses. Since you’re not familiar with their working procedure and they view themselves as pure and perfect, you trust them blindly without knowing where your payment goes.

 

With charitable organizations that accept bitcoin, you will have the option to track the bitcoin address, which can help you to ensure that the payment is transferred to the intended recipient.

3. Purchasing and Renting Cars

If you’re someone who’s into cars and wish to purchase them using your crypto wallet, we have good news for you. Tesla – a well-known auto manufacturer – has started to directly accept bitcoin in exchange for their cars. This means that now you can get your favorite Tesla by making bitcoin payments.

Not just Tesla, but another one of the major companies – BMW – has also joined the list of automobile companies that accept bitcoin payments.

 

But this isn't where the list ends, as a number of rental companies have also stepped into the crypto and bitcoin game and have begun offering cars for rent in exchange for cryptocurrency such as the bitcoin.

4. Travel Tickets and Accommodation Arrangements

Now that the covid outbreak is under control and the travel bans have been lifted, everyone is in dire need of a peaceful vacation. If you’re one of those individuals who wish to travel and only make the payment in your crypto wallet for the matter, we’ve got good news for you.

From paying for travel tickets to getting your hotel rooms booked and paying for your food, everything can now be done with the crypto payment. Even if restaurants and hotels don't accept bitcoin payment directly, you can purchase their gift cards using bitcoin and then redeem them.

5. Luxury Watches

Who doesn’t love a great timepiece? Fortunately, you can get your hands on watches of world-famous brands and make a bitcoin purchase. Not just that, but many other international luxury brands and companies offer you a variety of watches in exchange for bitcoin payments.

Summing It Up

With the increasing number of advancements occurring in the world with each passing day, there is no doubt in saying that cryptocurrency is the future. The list of things provided above is just the beginning of what’s to come as the number of payment systems accepting bitcoin grows every day. Until businesses begin accepting bitcoin directly, you can opt for the option of purchasing gift cards as it offers convenience in a lot of ways.