The history of transactions has transformed over the years as the concept of trading has adjusted to technological advancement. Market participants (particularly traders and buyers) moved from trading barter to cowries and coins and now to bank or fiat currency. Cryptocurrency emerged later on as an acceptable exchange of value, despite multiple regulatory resistance. It is now referred to as one of the top choices of payment, with over $US 17.05b in crypto transactions carried out in the e-commerce industry in 2023 alone. Many top companies, including Ferrari, Tesla, Microsoft, and Twitch, just to mention a few, accept cryptocurrency as payment. This means you can buy anything a regular banknote can with cryptocurrency.
The First Crypto Purchase
The first ever successful cryptocurrency purchase occurred in 2010 when Bitcoin was worth less than a dollar. Programmer Laszlo Hanyecz, one of the pioneers of Bitcoin, bought two Papa John’s Pizzas for 10,000 bitcoins, which were worth approximately $41. In today’s value, those Bitcoins are worth millions of dollars. Hanyecz responded gleefully and assured reporters that he had no regrets in an interview with CNN. Instead, he highlighted that he is happy to be the first person to conduct the first real-use case of Bitcoin. This transaction prompted the Bitcoin community to mount a commemorative plaque in Jacksonville, Florida, and celebrate Bitcoin’s Pizza Day on May 22nd every year to memorialize this historic purchase.
What You Need to Know Before Buying Things With Cryptocurrency
The safety of your transactions is an important factor many people consider before buying products, especially on online platforms. There have been multiple cases of online hacks, which led to the implementation of protective mechanisms like PCI DSS (Payment Card Industry Data Security Standard) to ensure security. Here is all you need to know before conducting a cryptocurrency transaction:
Safety of your transactions
Crypto enthusiasts and holders must know the level of safety they are exposed to before paying online. Cryptocurrency payments are generally safe as transactions are conducted in a decentralized environment without a central authority. However, a sudden loss of your private keys means a total loss of all your assets.
Charges Incurred
Online transactions involving fiat currencies require charges; this rule also plays out in cryptocurrency transactions, as you may need to pay the mandatory gas fees alongside additional charges set by the payment system. These fees are generally lower than the traditional payment system, an additional advantage of dealing with cryptocurrency.
The Effect of Volatility
Cryptocurrency is a highly volatile asset that can change value within a short while, and this can affect your total cost. The use of stablecoins like USDT or USDC with low volatility during transactions can help you hedge against crypto’s price instability.
Refunds and Returns
Crypto transactions must be done correctly, as there are no refunds or returns in cryptocurrency. Transactions on the blockchain are unidirectional, and the records are immutable. By cross-checking the total cost and recipient address, you can avoid errors that can lead to loss.
What Cryptocurrency Can You Use To Buy Products Online?
With cryptocurrency, there is no limit to the things or products you can buy both online and offline. The main intention of Satoshi, Bitcoin’s developer, was to grant cryptocurrency the same purchasing rights as the banknote. Whatever item your physical currency can buy, cryptocurrency can buy the same as long as the vendor or recipient has the facilities to receive the value in cryptocurrency.
Products You Can Buy With Cryptocurrency
There are many things you can buy with cryptocurrency, as mentioned earlier, and they include:
Physical Items
You can use cryptocurrency to pay for physical items like shoes, bags, dresses, food, electronics and appliances, and any other items of value you can see or touch. Many brands now offer payment gateways for their customers to pay for their goods. A common brand that allows cryptocurrency payment is NewEgg, a leading e-commerce store for consumer electronics and computer parts. They’ve made this possible since 2014, and with a yearly net sale of about $2 billion, cryptocurrency payments seem to be a favorite for many. Other brands that allow for crypto payment include Etsy, Shopify, and Overstock.
Digital Products
With cryptocurrency, you can enjoy all the digital products you desire, be it software or online domains. Microsoft is a popular brand that allows you to pay for their digital products, like Xbox, and this has been allowed since 2014. Gyft, another popular platform for gift card trading, allows you to buy over 200 types of gift cards with cryptocurrency.
Transportation
If you love to travel around, you can pay your fare with cryptocurrency. Travel agencies like CheapAir allow you to pay for your fares and hotel reservations with Bitcoin. Travada, a similar travel agency, accepts 45+ cryptocurrencies to allow users to pay for their travel costs and other travel products.
Phone Bills
You can also pay your phone bills with cryptocurrency. Giant corporation AT&T is the first mobile carrier to accept Bitcoin for its services, allowing users to pay for their monthly phone and internet plans, activation fees, and even upgrade their gadgets. HTC also allows you to pay for their mobile gadgets.
Movie Tickets and Bills
If you want to watch movies, you can pay for your movie tickets and concessions online and watch in person at AMC Theaters. Similarly, you can pay TV bills with cryptocurrency. Brands like Dish TV also accept cryptocurrency for TV subscriptions.
Donations to Charity
You can donate to your nonprofit organization with cryptocurrency. If you are interested in supporting nonprofit brands like Wikipedia or Internet Archive that provide free resources, there is an option for cryptocurrency payment.
Sports Tickets
The use case of cryptocurrency is boundless, as you can now buy tickets to watch and support your favorite team. Fans of the Miami Dolphins and Dallas Mavericks can pay for their tickets and other sporting merchandise with Bitcoin and Litecoin.
Integrate crypto into your business
Business owners interested in joining other top corporations in offering cryptocurrency payments to their customers can do so easily by using the white label payment platform provided by PTPWallet. PTPWallet offers payment gateways that allow businesses to process online payments under full ownership of the gateways to increase revenue streams and enhance business profitability. Businesses can enjoy PTPWallet services including virtual POS, payment gateway, and more.