It can be appealing for bitcoin holders to use their holdings as a form of payment rather than only an investment. Even though more businesses and merchants are starting to use cryptocurrency, many big businesses and utility companies still forbid paying bills with cryptocurrency directly. Here’s how to use cryptocurrency to pay your bills and why experts advise against it.
Using cryptocurrency to pay your bills
You must first buy the digital currency of your choice before you can use it to pay your bills. Make important to investigate the platform where you intend to purchase and keep the coin in addition to the coin itself. Crypto investments lack the same protections as traditional bank accounts, which are insured by the FDIC, and their prices can be extremely unpredictable. There is no assurance that you will get your money back if a coin experiences a large decline in value or a trading site goes down, as was the case with FTX.
Which businesses take cryptocurrency?
Direct cryptocurrency payments are rarely accepted by large companies, though there are a few that do. Additionally, for companies that do not directly accept cryptocurrency, third-party services can assist in converting it into payments.
The first significant American cell carrier to take Bitcoin payments via BitPay was AT&T in 2019. Users can “top up your T-mobile prepaid minutes and data with Bitcoin, Ethereum, Dash, Dogecoin, and Litecoin” through businesses like Bitrefill. Customers of Verizon may do the same on the same website, which also offers a chance to buy gift cards, including Visa and Amazon ones.
Although Amazon does not permit users to buy products with cryptocurrency, Amazon-owned Twitch subscriptions do. Additionally, you may buy gift cards for stores like Amazon using Bitrefill, which you can use on the online marketplace. Overstock.com, an online furniture retailer, accepts cryptocurrency payments.
Microsoft allows users to use Bitpay to pay for subscriptions and merchandise.
Although using cryptocurrency to pay bills is feasible, it necessitates cautious preparation, particularly in light of the dangers associated with volatility and security issues. If you decide to use cryptocurrency for regular spending, think about utilizing a reliable platform that can safely process transactions.
Other service providers will handle the transaction on your behalf if you are unable to use BitPay or Bitrefill. In certain situations, you could have to pay a fee in order to complete the transaction, which could be deterrent because it would increase the cost of your bill.
