2 attempts to live on Bitcoin: The first time a pillar did not float after a week, the second was only a few days because of force majeure

“In 2017, I tried to live on Bitcoin for a week and failed because it was too difficult to find businesses accepting it as a form of payment. At the time, Bitcoin was trading at $ 2,500 / USD /. VND at the beginning of the year and reached a record high of 20,000 USD / VND at the end of the year, but by 2018, this currency had lost 80% of its value.

That is the statement of CNBC reporter Seema Mody about the experience of paying with Bitcoin 4 years ago.

With Bitcoin continually surpassing its historical peak, most recently surpassing the $ 58,000 / dong mark, Seema decided to experience living on Bitcoin again. However, unlike 2017, she has shortened her experience to a few days due to the influence of the social exclusion order and the closure of many stores simultaneously to ensure safety in the midst of the Covid pandemic- 19.

Seema Mody.

2 times Bitcoin payment experience

Seema compares how Bitcoin changed after 4 years. In 2017, she met a person who owned Bitcoin through a chat room and this person agreed to meet her at the train station to exchange a Bitcoin number worth 20 USD with a train pass. If you keep the bitcoins above, you currently have $ 464 in your hand.

Meanwhile, the $ 10 salad she used to pay in Bitcoin at a French restaurant in 2017 will now cost up to $ 232. Another time, she paid $ 6.5 worth of Bitcoins to buy ice cream sandwiches. If calculated at the highest price last month, this amount is up to 150 USD.

The blossoming of intermediate applications

Seema told CNBC: “In 2017, I found it very difficult to buy coffee directly with Bitcoin. However, this year, thanks to Bakkt Cash – the digital currency platform that Starbucks is testing in a gender program. for example, it was a lot easier.

This is one of the biggest changes compared to 4 years ago. At this time, there are more and more intermediaries to help you spend Bitcoin more conveniently. Instead of linking your bank card or entering a credit card number, you can choose to pay with Bitcoin on the app. They will convert the price of the product you buy at the current Bitcoin price.

“The best anti-fraud” free payment platform Flexa says retailers like Nordstrom, GameStop and Lowe’s allow users to pay with Bitcoin. However, up to 60% of transactions just stop at buying coffee, tea or other fast services.

According to Seema, similar to 4 years ago, spending Bitcoin through gift cards is still quite common. However, gift card redemption sites often have quite a high conversion fee, and that’s why many Bitcoin owners don’t consider this as real currency.

The current average fee on bitinfocharts.com is 15 USD, compared to 30 USD 2 weeks ago. The Chainalysis report shows that only about 1% of Bitcoin transactions in the US come from commercial services.

Seema recounts her recent experience using Bitcoin: “I used a popular service to exchange Bitcoin for a $ 5 gift card and make purchases on Amazon even though the process of connecting to an e-wallet is a bit time-consuming”.

However, the above could soon be improved as PayPal payment platform with more than 300 million users claims to have implemented technology that allows customers to use Bitcoin as a payment tool. To date, 30 million PayPal partner sellers have accepted this option.

PayPal’s move will make Bitcoin payments even more popular.

David Grider, director of digital asset strategy at Fundstrat, said: ” If the price of Bitcoin is less volatile, the cost of exchange will be more stable and the use of cryptocurrency will become more common .” According to him, most experts believe that Bitcoin is still seen as a store of value, not a currency. Therefore, it is often referred to as “digital gold”.

Note when using Bitcoin to pay

In addition to sharing personal experiences, Seema also notes Bitcoin owners about two things if they want to use it as a means of payment: Legal and Tax. Not long ago, the US Treasury Secretary warned of the risks of using cryptocurrencies in illegal transactions. This could be a sign that the US authorities will have stricter control over Bitcoin payment transactions.

Meanwhile, the US Internal Revenue Service will officially classify Bitcoin as an asset, not a currency on April 15. Therefore, Bitcoin may be subject to income tax regulations.

Seema shared: “Only time will tell whether I will regret that Bitcoin’s value continues to peak or feel lucky to have spent it before it falls? It all depends on the price movement of Bitcoin. this coin for the time being “.

Source: CNBC