The Daily Telegraph - Saturday - Money
‘I accept Bitcoin for my works of art’
Despite the huge popularity of Bitcoin among speculators, its usability as a currency remains limited. Transaction fees are high, processing times can be lengthy and price fluctuations pose problems for both sellers and buyers.
Buyers don’t want to hold the cryptocurrency ahead of a purchase when it could fall in value dramatically, or spend currency that could appreciate significantly in value. Sellers don’t want to accept currency that could fall in value once they’ve received it.
But for those who are determined to spend Bitcoin, where exactly is it possible to do so?
Expedia, the hotel and flight booking service, accepts payment in Bitcoin, as do the online shops of second-hand chain CeX and cosmetics company Lush.
Microsoft allows customers to redeem Bitcoin to add funds in pounds to their online account, which can then be used to buy games, films and apps in the Windows and Xbox stores, although not items in the Microsoft online store. The money added cannot be withdrawn afterwards, though.
An online service called wheretospendbitcoins.co.uk offers a list and map of companies that accept payment in Bitcoin, in person or online. However, it is unclear how often the website is updated or whether any of the companies listed has been vetted in any way.
When it comes to paying online, select the Bitcoin payment option at the checkout. You will usually be presented with a few options: a scannable QR code, a link to sign into your Bitcoin wallet (this may be limited to a specific provider) and/or a Bitcoin address.
To pay using a wallet app on your smartphone or tablet, log in and scan the QR code. This will send the payment.
To pay using the link, click it, sign in if you have the necessary account and confirm the order.
If you can’t do either of the above, or if the merchant provides only a Bitcoin address, you can log into your wallet and manually send the Bitcoin. You will need to know the merchant’s address and the exact amount of Bitcoin to send, which will both be shown during checkout.
There are also a number of online retailers that have sprung up specifically to serve people who want to spend cryptocurrency. However, these have little history and few or no customer reviews, making it hard to determine which are trustworthy. There were a number of debit cards that converted Bitcoin and other cryptocurrencies for users on the go, enabling them to spend in sterling. However, Visa suspended many of these cards earlier this month.
Many were operated using Visa provider WaveCrest, which was ordered to close all prepaid cryptocurrency cards. London Block Exchange’s Dragoncard, which would have allowed users to spend several different cryptocurrencies, had been due to use WaveCrest cards.
Bitcoin is meant to be a currency, not an investment – but where can you actually use it? By James Connington ‘There would be a queue of 20 young guys waiting to use the Bitcoin ATM’
These can be used to buy or sell Bitcoin for cash. You can either deposit cash and have Bitcoin added to your wallet or sell Bitcoin from your wallet and receive cash. Not all machines will support cash withdrawals. These machines usually charge huge percentage-based fees and are arguably mainly of use to criminals.
Adrian Jones, founder and owner of two London coffee shops, previously had Bitcoin ATMs installed in his shops.
He said he was approached by cryptocurrency ATM firm SatoshiPoint and received a percentage fee on all transactions. But he later had the machines removed as they were “mainly being used by drug dealers”, who were abusing his workforce.
“On a Friday or Saturday night there would be a queue of 20 young guys waiting to use the machine. If there was a glitch or they had to wait they’d get angry with my staff,” he said.