Can you buy anything with crypto? Who accepts Bitcoin?
The real question is: What can’t you buy with it? This 2020, hundreds of companies are already selling for BTC, from apparel to supercars.
Retail products, restaurants, even some real estate accepts it. Knowing some stores are Bitcoin-only, crypto can buy as much as you would with fiat currency, if not more.
But why do some companies choose it and others not? Are the risks worth it? Crypto is still a small community compared to global currency, and it’s uncertain how brands will keep their profit margins. At the same time, you could buy a service either twice as cheap or expensive.
Bitcoin: Who Accepts Exactly?
Numbers never stop to grow: almost a hundred new businesses adopt this method every month. Some of them include the largest brands in the industry.
Food & Beverage
It all started in 2010. Remember the $80-million-dollar pizzas?
Forget about cash: Bitcoin can pay for your restaurant, supermarket bill, and food delivery. Think of Starbucks, BurgerKing, Dunkin Donuts, or Uber Eats.
Yes, you can also order from nearby locations, even if BTC isn’t their main payment method. Some middle-platforms such as Pizzaforcoins connect to the major supply chains and order for you.
Show your location and choose a local nearby in this app. You can order using Bitcoin, and the platform will pay the business and send the order on your behalf.
Not surprisingly, many game companies accept Bitcoin: Microsoft Xbox, Zinga, CoinMall, BitPlaza. If you’re selling a virtual product based on subjective value, why not go crypto?
Twitch, Steam, and BMI Gaming add up to the list.
Shopping / Retail
Most major retailers accept BTC but indirectly. The Pirate Bay, Etsy, Amazon, Overstock, naming a few.
Note: If you’re going to buy anyway, why not use apps like Lolly? Get Bitcoin rewards for shopping from your favorite brands.
Subscription-based businesses accept Bitcoin, especially on technology. For the same price, crypto can pay for cable TV (Dish TV) and your Internet. Imagine paying Bitcoin for a satellite Internet connection (check SkyDSL).
With a 3rd-party provider, you can buy from big brands such as Verizon and AT&T.
“Why would someone order pizza with Bitcoin?” These applications never stop surprising us, especially:
- The Binance Charity Foundation
- A profitable gold-mine for sale
- Bitcoin Real Estate Buy-And-Sell
- Buying sports cars on BitCars
Did you see them coming? What do you think will come up next?
How Are Companies Adopting This Method?
Millions of consumers are joining the crypto markets, and it’s a matter of time companies do the same. Some sites report the exact number of agencies that join the movement, which averages a hundred per month in 2020.
Only the biggest brands have accepted Bitcoin. Most companies won’t do it yet because they can’t afford to lose their margins due to the BTC ups and downs.
Those who adopt Bitcoin are mostly new firms and startups coming up with new ideas. The small businesses (yes, locals too) who accept this method will have a competitive advantage against the giants of their sector.
Will We Ever Buy Anything With Bitcoin Someday?
Some day not in 2020.
Customers may have no problem paying with crypto: business owners have a problem accepting it.
If you’d want to buy anything— as fiat currency does— we’d need to agree on a price that reflects real value. What scares entrepreneurs is the volatility and lack of regulation.
As an owner, you worked hard creating a product, training staff, getting clients, and making numbers work. You don’t want to lose 20% of your profits overnight because the value of crypto has changed.
The first challenge is easy to solve: keep expanding the market, and prices will fluctuate less. But regulation? It depends on international agreements, which depend on the performance of Bitcoin.
Once we get over it, 99% of companies will have no problem adopting Bitcoin.
Bitcoin: Who Accepts (Or Will Accept)?
When talking about Bitcoin payments, we refer to treating it as a normal currency. You buy, store, or sell it.
Most companies don’t work that way. Buy-and-sell is easy, but no seller wants to hold a currency that changes so rapidly.
Very few companies do that. They have a “crypto wallet“ to process your payments and hold it. It’s only a good move if you:
-Want to keep Bitcoin as a long-term investment
-Have high or unlimited profit margins
-Want to buy Bitcoin-only products
If you ever want to convert later, you are exposed to uncertainty.
That’s why most companies adopt Bitcoin indirectly:
- They set prices with the official currency (USD).
- You pay the amount in BTC
- A software instantly converts your BTC into USD
You can’t store bitcoin on a cashier box. But for a conversion fee, the seller can accept crypto without the risk of depreciation. Other brands like amazon make you convert BTC into a middle-payment method (gift cards), which you can only use on their platform.
Long-term investors use to create bitcoin-only stores. Real estate, for example, could cost 33BTC no matter the price changes.
Will “X” Company Accept Bitcoin In The Future?
Imagine you knew what firm would adopt the BTC method. As an investor, you could put money before they did, and expect high returns after they accept it. More payment options mean potential sales.
This reasoning isn’t hard to do:
- A company can’t just accept it and expect no consequence. BTC has its trade-offs.
- A CEO has to choose what’s best for the company’s net worth.
Here are a few ideas. If any company you know meets these conditions, they WILL likely accept Bitcoin soon.
#1 Unlimited ROI Goods And Services
If your return on investment is infinite (if it costs you $0 to create the product), you can only go up, not down. Limitless-ROI products are usually based on perceived value. Think of ebooks, online courses, or video game currency. Nothing stops you from selling at $3 or $300.
It’s perceived, not real value. If Bitcoin goes down, you up prices, no problem. And the upside? Those bitcoins could be worth 5X later!
#2 High Margins / Low Losses
Retail stores can sell Bitcoin small products that don’t change much its price. The market may fluctuate about 20% per day, but if you sell $4 products, you won’t lose that much.
Those low-end products come from categories like Home & Kitchen, Baby, Pet Supplies, Household, Tools for Home Improvement, Sports & Outdoors, and Office supplies.
If you run auctions as Ebay does, Bitcoin is a plus (because you’re selling on perception anyway).
Adopting the payment method may get you more sales. It improves the proposition compared to larger competitors who can’t afford these risks. Refunds, for example, can’t be done with crypto.
It doesn’t mean you shouldn’t do it with high-price products. But you should increase your profit margins by 10% to 20% to avoid surprises.
#3 Fast-Changing Sectors
Automotive? Energy? Technology? Thanks to innovation, all of these assets tend to depreciate over time. Buy a $900 2020 laptop; you could resell it for $450 in ten years if you’re lucky.
What does it mean? People are holding items that will be underpriced in the future. If you pay them with Bitcoin, however, at least you have a chance to make a profit.
You can resell a $190,000 car for $170,000. But a $190k car in BTC is still a $190K car. If Bitcoin goes up, it’s worth even more.
#4 Local Businesses
Hundreds of companies join every month, being most of the new/small startups. A local accepting BTC can secure more business when large brands can’t do it. Why not? They’ve been using a system for so long that their profit margins are inflexible.
Small locals don’t have that problem. All a restaurant will need is a crypto wallet. It has become the norm in franchise supply chains.
#5 It can’t be tied to real value
Real estate has real value. Housing, transportation, utilities, essential goods are also Bitcoin opposites. But it doesn’t mean some of them could accept crypto.
More likely, these goods will have imposed limits on how high or low the price can be. To minimize risk, they may use examples like: “Bitcoin accepted for orders under $50.”
Exceptions To Bitcoin Purchases
- Retail sellers with tight profit margins
- Financial agreements and acquisitions
- Most real estate (varies on category)
- Saas High-Ticket Offers (Software As A Service)
- Basic: Housing, Utilities, Transportation
The Bottom Line
Bitcoin sounds promising for most companies, although it may be too early to adopt it as payment. Plus, some companies pay you simply by paying with crypto, which nobody can complain about.
“Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient. It’s good but won’t alone be the dominant system.”
Not all companies accept Bitcoin. But for sure, it’s harder to find out what Bitcoin can’t buy rather than the opposite. For 99% of cases, Bitcoins work as conveniently as real money, if not better.
That pizza order. That gold mine for sale. Or your dream car. What will you buy today?